Hochschild Mining Share Discussion Threads

[topicel] 16/10/2016 16:53

So Hectorp, a balanced portfolio! Whatever next?! Well, at least one that is balanced if you just play PMs and related sectors...

Reading between the lines, the crash of the equity markets, were it to happen, would drag down all boats including HOC. If one feels that is likely to happen - like when Hillary is confirmed as President-elect - then the sensible thing to do is to sell HOC first thing and await the tsunami.

Buy back in at, say, £2 a share or less depending on the size of the waves and avoid all risk and be first to profit as safe havens silver and gold start rising and the likes of HOC begin a relentless rise with them.

Makes me wonder why anyone is holding HOC at all...

Topicel

[simonthe1st] 16/10/2016 15:34

SimonThe1st16 Oct '16 - 12:39 - 7594:
"When stock markets crash, demand for safe haven gold and silver increases."

Between 9 Oct 2007 and 9 Oct 2009, the S & P crashed 56.8% but gold went up 25.5% and silver 1.1%.

Following which, gold and silver (and the gold and silver miners) soared in 2010 and 2011.

And let us not forget, HOC is also a gold miner. Why most here only refer to it as a silver miner is misleading. It even says it in the misleading thread title! HOC is 50/50 gold/silver!

[simonthe1st] 16/10/2016 15:08

HOC and the other miners have dropped because gold and silver prices have been temporarily manipulated down.

HOC and the other miners will go back up when market forces trigger a bounce in gold and silver prices and that could happen any day now.

Another big overnight bounce triggered by buying in the East could be imminent.

Market forces will always win, which is why precious metals and the miners have soared in 2016.

[hectorp] 16/10/2016 14:19

crikey here's a truism: ( Simontheist)
"When stock markets crash, demand for safe haven gold and silver increases"
my word.

I and others here have sat on gold and silver for nine years now, some, for 15 -19 years. I was a strong buyer in late 2008 at $500 -600 levels. Some of us have added and some have sold some for cash if need arose.
It is probably time to add to PM company shares such as HOC - but , should the stock markets actually crash or very seriously correct, HOC will also tumble. Only PM's give guaranteed insurance, if owned and in your own possession ( or in a safe where you have the key). But the Gold ETF's such as Vaneck iron out the probabilities of any one company having a bad year. So while their returns in a gold bull market are lower than that of any one share, they do provide an element of insurance in their price.
If I can be bold, I'd say around now, that a good spread of risk if a gold bug, or someone keen on gold and silver who want some upside could be 33% PM phys, 40% certain mining shares, and the rest in the Gold ETF. Silver Wheaton of course also offers some RTF style cover. Now in the event of say, a 25% major stocks correction, some PM's could be released to add to PM Miner positions for the next upswing. But I'd still sit on most of the metal and the ETF.

[k mon] 16/10/2016 13:30

Thank's SG - Caledonia - wasn't on my radar.


- It is now :0)

[lauders] 16/10/2016 13:07

Shows just how much analysts and their predictions are worth. Zilch! When they make upgrades the effect is usually nil to moderate. When they downgrade then the market takes notice. Everyone still "listens" but my experience is to take them with a large pinch of salt!

[simonthe1st] 16/10/2016 12:49

Let us not forget, Royal Bank of Canada's "Outperform" rating with a target of 335p for HOC was made on 3 Oct, before last Thursday's better than expected Q3 mining production results.

[simonthe1st] 16/10/2016 12:39

When stock markets crash, demand for safe haven gold and silver increases.

[gaaston] 16/10/2016 11:15

Yes indeed DT1010 ~ that has been my experience too. Having some physical PM's might soften the blow when the inevitable happens.

[dt1010] 16/10/2016 07:45

Everything gets sold when the markets crash. Gold and silver too, to cover losses. But they rise first afterwards.
Gold rises during fear and uncertainty. Silver follows.

[simonthe1st] 15/10/2016 23:02

Surely precious metals and therefore HOC will perform well when the stock markets crash, Charles.

[gaaston] 15/10/2016 21:33

If only a catalyst would break the elite's hold in America. Presidents seem to have no power and politics is/are run by dynasties of old. The arrangement cannot go on for much longer and like the white workers here: they'll vote !!

[saturdaygirl] 15/10/2016 19:50

Just a chart ,, make of it what you will .

[dt1010] 15/10/2016 19:01

We can expect significant moves up in PMs anyway shortly

[charles clore] 15/10/2016 18:28

I would very much like to think so Simon but it feels like we are hanging on to a greased pole at the moment. And what with the Stock market about to crash and all that - according to HSBC. Well...

[simonthe1st] 15/10/2016 18:20

This is clearly very significant:

14 Oct..."Yellen, in a speech at a conference of policymakers and academics, laid out the deepening concern at the Fed that U.S. economic potential is slipping – and may need aggressive steps to rebuild it."

So can we expect significant bounces in gold and silver (and therefore HOC) next week when the market grasps the significance of what Janet said?

[dt1010] 15/10/2016 12:46

Not until Oct 30th which is considered lucky- a lot of Indians like to complete property purchases around this date as it's considered lucky. It's Diwali, the name of the festival.
This year Diwali falls on Sunday October 30th.
I reckon November will be the start of the new leg up for PMs.

[juju44] 15/10/2016 12:13

I thought October was supposed to be a good month for PM's with the Indian wedding season in full bloom

[hectorp] 15/10/2016 09:54

silverdoctors are selling their own book, and the language suggests so. They remind me of the old Penny Share Guide " Buy Now" or " miss the boat".

while its certainly the case that the gold and soilver miners are oversold on a 10 month basis. I also agree the upside could be say 30 to 40% in the coming year - maybe more.
However surely this month ( often a low month for PM's) is for creating small positions and waiting until the proof of an upturn is underway.

I am still long HOC and CEY and added FR Ist Majestic. However, I still only hold a few £K money wise in shares.

The situation of gold at 1250 dollars is that it is looking like a strong support is being established, the EU may tighten again ( or not un-tighten!) next week, and coming weeks sees a return of the Indian trade. Indeed gold itself could be a good trading bet from Monday for say 25 Dollars ( 250 points) . Silver should follow.
To me odds considerably favour $1300 gold and 18.50 silver in coming weeks.
GLA. Note silver in sterling is a thing of some value, still.
H

[lauders] 15/10/2016 01:55

Thanks for the link DT1010. The final couple of paragraphs sum-up the article:

The bottom line is gold stocks are a screaming buy today. Their powerful young bull already suffered a massive correction before being wracked by an exceedingly-anomalous stop-running-fueled plummet. That reignited and ballooned the healthy mid-bull selloff, naturally leading to extreme bearishness on this sector. But the gold miners’ technicals and underlying fundamentals still remain exceedingly bullish.

As gold’s own bull starts powering higher again as investment demand resumes when these lofty Fed-levitated stock markets inevitably roll over, the gold stocks are going to soar again. But as usual the only traders who will reap the coming massive gains are the prudent contrarians who can fight their own fear to buy low in this massive correction. Psychological discomfort is a small price to pay for multiplying your wealth.

I might be topping-up one more time next week if we stay at these levels in HOC.

Also worth listening to the Sprott site weekly wrap-up here:

I think HOC qualifies as a company fitting the criteria mentioned :-)

[daybreakers] 14/10/2016 23:56

What about platinum miners?

[dt1010] 14/10/2016 22:41

Says it all

[simonthe1st] 14/10/2016 16:32

At least HOC closed up 0.78%. All the other miners on my watch list are down.

[simonthe1st] 14/10/2016 16:05

Of course HOC is a quality gold and silver miner.

From that Shares Mag piece:

"This year’s impressive gold price rally has gone into reverse with the precious metal at $1,253 per ounce now trading at a four-month low. We don’t think it will stay down for long. Now is a good opportunity to pick up gold mining shares at a more attractive level than earlier this year."