Many keep claiming gold and silver are in a bubble… Many say it’s going to the moon… Who’s right? We at Faith-Based Investor have been bullish on gold and silver for many years. If you bought silver when we first presented the opportunity, you could have bought silver for under $17 an ounce and today could sell it for over $40! If you first bought gold when we discussed its potential you could have bought gold under $800 an ounce and now could sell it for well over $1,800 an ounce! Just look where gold prices have gone: 2000 — $273.60 2001 — $279.00 2002 — $348.20 2003 — $416.10 2004 — $438.40 2005 — $518.90 2006 — $638.00 2007 — $838.00 2008 — $889.00 2009 — $1118.40 2010 — $1421.40 2011 (so far as of 9-4-11 ): $1,887.56 If you are like us and think gold and silver still have a long way to go upwards, then you may want to look at mining companies. Some of our estimates for gold have it at $2,500 to $3,500 an ounce over the next few years as the global financial crisis lingers on. We believe silver could hit $100-$150 an ounce. Gold and silver mining companies may currently represent a cheaper way to participate in the rally. As always do your own homework, but here are ten mining companies we are watching closely… Ten Mining Companies to Consider 1. Barrick Gold Corp. (NYSE: ABX): Barrick Gold Corporation engages in the production and sale of gold, as well as related activities, such as exploration and mine development. The company has a portfolio of 25 operating mines and a pipeline of projects located in North America, South America, the Australia Pacific region, and Africa. It also produces copper and holds interests in oil and gas properties located in Canada. The company was founded in 1983 and is based in Toronto, Canada. 2. Compania de Minas Buenaventura SA (NYSE: BVN): Compania de Minas Buenaventura S.A.A., a precious metals company, engages in the exploration, mining, processing, and development of gold, silver, and other metals in Peru. It also explores for zinc, lead, and copper. 3. Eldorado Gold Corp New (NYSE: EGO) : Eldorado Gold Corporation, together with its subsidiaries, engages in the discovery, exploration, development, production, and reclamation of gold properties in Brazil, the Peoples Republic of China, Greece, and Turkey. It operates the Kisladag gold mine in Turkey; the Jinfeng, Tanjianshan, and White Mountain gold mines in the Peoples Republic of China; and the Vila Nova iron ore mine in Brazil. 4. Gold Fields Ltd New Adr (NYSE: GFI) : Gold Fields Limited engages in the acquisition, exploration, development, and production of gold properties. It also explores for copper. The company holds interests in mines located in South Africa, Ghana, Australia, and Peru. It has total attributable gold equivalent mineral reserves of 78 million ounces and mineral resources of 281 million ounces. The company was founded in 1968 and is based in Sandton, South Africa. 5. Iamgold Corp (NYSE: IAG) : IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. 6. Pan American Silver Corp (NASDAQ: PAAS) : Pan American Silver Corp. engages in the exploration, development, extraction, processing, production, refining, reclamation, and operation of silver properties. The company also produces and sells gold, zinc, lead, and copper. 7. Randgold Res Ltd Adr (NASDAQ: GOLD) : Randgold Resources Limited, together with its subsidiaries, engages in the exploration and mining of gold mines in west and central Africa. 8. Royal Gold Inc (NASDAQ: RGLD) : Royal Gold, Inc., together with its subsidiaries, acquires and operates precious metals royalties. The company owns royalty interests in various production, development, evaluation, and exploration stage projects, which explore for gold, silver, copper, lead, and zinc metals. 9. Silver Wheaton Corp (NYSE: SLW) : Silver Wheaton Corp., together with its subsidiaries, operates as a silver streaming company worldwide. The company has 14 long-term silver purchase agreements and 2 long-term precious metal purchase agreements whereby it acquires silver and gold production from the counterparties located in Mexico, the United States, Canada, Greece, Sweden, Peru, Chile, Argentina, and Portugal. 10. Silvercorp Metals Inc (NYSE: SVM) : Silvercorp Metals Inc. engages in the acquisition, exploration, development, and operation of silver mineral properties in China and Canada. The company holds interests in four silver, lead, and zinc mines, including the Ying Project, the HPG Project, the TLP Project, and the LM Project at the Ying Mining Camp in the Henan Province of China. Why Miners? When fear is at its peak gold and silver tend to soar! Fear has taken the stock market as a hostage the past few months. Gagged and tied up, the markets have been paralyzed unable to shake its yearly lows. One of the biggest beneficiaries of the tough times in the global recession has been gold. This precious metal is inching its way toward $2,000 an ounce, an increase of nearly 30% just since the beginning of 2011. When investors become increasingly nervous they tend to flock toward perceived safe havens like gold, causing its price to rise, sometimes rapidly like we have seen this year. One segment of the metals market that hasn’t quite enjoyed the nice ride to the top have been the mining companies who pull gold and silver out of the ground. Yet they are playing catch-up! Historically gold and silver mining companies provide leverage on gold and silver prices. Take for example a 1% increase in the price of gold. Normally you would tend to see a 2% or 3% rise in the price of gold mining companies. So far, this has not been the case. I believe this presents an interesting buying opportunity. Because ultimately gold and silver mining companies are stocks, investors have been “throwing the baby out with the bathwater”. Meaning, investors are punishing the good along with the bad as they run from risk and seek safety. Additionally when oil prices exceeded a $100/barrel this cut into profits for the miners. Now that oil prices have fallen to around $80 or so a barrel, this also should help miners catch up to soaring gold and silver prices. Many of these miners also offer dividends which can add to the attractiveness of these shares. So if you are bullish on gold and silver consider adding a miner or two to your overall mix. You could even buy a basket of miners like the ten we listed above. As always do your own homework! Those who want exposure to miners without buying and selling the individual companies could also consider three miner ETFS: Market Vectors Gold Miners ETF (NYSE: GDX) , comprised of large gold mining companies; Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) , comprised of small and mid size gold miners; and GlobalX Silver Miners ETF (NYSE: SIL) , comprised of a basket of silver miners. What opportunities are you watching? Which ones did I miss? Do you think gold and silver will continue to soar? Or is it in a bubble? Related Articles: Selling gold for cash How To Invest In Gold & Should You Joseph Wealth Systems Don’t get ripped off selling your gold! What the Bible says about this economic downturn 5 Priceless Lessons from Silver’s 22% Drop 4 Investment Scenarios and How You Can Play the Trend Jay Peroni, CFP® is author of The Faith-Based Millionaire , Chief Investment Officer at Faith-Based Investor , and host of the Rethink Wealth radio show . His life passion is helping individuals and businesses keep Christ first in the investment and financial planning process. As a thank you for subscribing to our newsletter you can download our quick eBook ” 25 Ways To Save Money in 2011 ” for FREE! The articles on this site are for entertainment purposes and should not be taken as financial advice. Please contact a financial professional for specific advice regarding your situation. Also, many of the CPF articles help us pay the bills by using affiliate relationships with Amazon, Google, eBay and others. Find out more here .
Gold and Silver: 10 Mining Companies to Consider