Bargains Abound in Precious Metals Equities

Posted on October 23, 2007 , Filed Under Stocks

Time will tell whether my post yesterday over this week being a huge opportunity in precious metals equities will be accurate. I wrote yesterday that it might be the best time for investors to jump into precious metals equities prior to a possible end of the month Fed rate cut. I see plenty of bargains currently. Today I jumped back into Lundin Mining Corporation [[LMC]] at $12.76. Readers can use the search function to read my previous analysis of Lundin Mining. I expect to see LMC back to $13 levels by the end of the week. Jim Cramer pumping LMC is also bound to add visibility and interest to the stock.

I continue to like Silver Wheaton [[SLW]] and Yamana Gold [[AUY]]. I also overlooked Coeur d’Alene Mines Corporation [[CDE]] and Tanzanian Royalty Exploration Corporation [[TRE]]. CDE experienced a 10%+ drop and TRE experienced up to a 20% drop from recent highs during yesterday’s gold and silver correction. TRE at low $5’s is a great bargain with Jim Sinclair at the helm and physical gold prices above $750.

I am expecting to see a technical bounce for US Gold [[UXG]]. UXG is treading in oversold territory with RSI at under 30 and MFI almost under 20. MACD shows a possible uptrend forming as we approach a bullish centerline crossover.

*Disclaimer: The author owns shares in LMC, CDE and UXG.