Silver is much more volatile than gold. Typically when we see a weak day for the gold price, silver has a terrible day. Likewise, if we see a strong day for gold, typically silver delivers exceptional performance. Because it's so volatile, we term it the devil's metal.
Andrew Kaip, managing director of mining equity research at BMO Capital Markets, says the stark reality is that the precious metals sector is only part way through a down cycle and that structural issues will result in a fresh phase of consolidation.
Finding the right combination of factors for an investable tungsten operation is no easy matter, says Robert Baylis, managing director of London-based Roskill.
Many small-cap exploration and production companies have had a good run in recent years, but are now getting whacked given their strong connections to oil prices.
Florian Siegfried, head of precious metals and mining investments with Zurich-based AgaNola, says there are small signs—fewer equities participating in the recent rally, greater spreads in the high-yield market—that the sentiment toward gold is changing.
Near-term oversupply is suppressing uranium prices but there are signs of upside movement, says Colin Healey, research analyst with Haywood Securities.
Paul Adams, an analyst with brokerage firm DJ Carmichael in Perth, believes select junior resource companies will outperform the broad markets as macro-level events impact certain commodities.
