Summer is a time when most people take a break for the holidays. This is where some experts argue that mining is the industry to watch for U.S. investors. The mining industry also takes a break from the hectic market activity. But depending on your perspective, he says, this period can turn into an opportunity for investors to reap attractive returns.
In a recent interview with the Investing News Network, John Pennek, principal portfolio manager and consultant at Pennek Consulting, emphasized the seasonality of the markets and recommended his strategy to investors at this time of year.
Take advantage of the golden opportunity to mine for gold
Pennek predicts that the market will rally from August through November, and suggests using the quieter months of July and August to strategically invest in specific stocks. “Summer and December are the best times to find great deals,” he said. “We need to be extra diligent while others are neglecting to invest. The potential returns from these hidden deals can be strategically realized in the following year.”
8 Miners to Watch
Pennek shared recent updates on some of the companies that have been on his radar. Among them are Ascendant Resources (NASDAQ: ASND), US Gold (NASDAQ: USAU), Canadian Critical Minerals (TSXV: CRM), and Stillwater Critical Minerals (OTC: SWCMF). He also mentioned companies like Spark Energy Minerals (OTC: SKPNF), World Copper (TSX: WRCPF), Canadian Palladium Resources (OTC: CRPGF), and Champion Electric Metals (OTC: CMPRF).
Investing in mining, that’s the trend right now
“If you’re a savvy investor, you should consider putting some capital into mining at this point,” Pennek said, emphasizing that it’s a great time to invest in the industry.
What will happen to the price of gold
Pennek offered his own take on where he thinks the gold price is headed. He currently sees support and resistance levels for the gold price at $1,790 to $1,800 and $1,820 to $1,865 per ounce, respectively, and is optimistic about the price’s recovery despite favorable economic data in the U.S. and expectations of further interest rate hikes.
In conclusion, the summer quiet period in mining is no longer a time for relaxation, but rather an opportune time for us to invest for the future. By utilizing a mining investment strategy that takes into account seasonal factors, you can significantly improve the performance of your investments.
常見問題
1. What are the advantages of investing in mining during the summer?
The beauty of investing in mining during the summer months is that you can find and capitalize on neglected investment opportunities while other investors are inactive during market lulls.
2. What factors affect the price of gold?
Many factors affect the price of gold, including currency values, inflation, and interest rates. Global political and economic instability can also affect the price of gold.
3. How does seasonality affect your mining investment strategy?
Seasonality can affect the productivity and value of your mining business. Some miners adjust their mining activities based on seasonal patterns, which can create investment opportunities.
4. What research methods are required for investing in mining?
The research required to invest in the mining industry is to identify market trends and understand the financial position and strategy of the mining companies you want to invest in. It’s also important to assess market volatility and risk, and develop strategies to respond to them.
5. What are the risks of investing in mining?
The risk of investing in the mining industry can fluctuate based on a variety of factors, including the complexity of mine operations, volatility of resource prices, political and economic stability of countries and regions, and environmental and safety regulations.
- Investors are responsible for their own investments in the companies mentioned in this post. Investing requires careful judgment.
