RE:Still Cheap? Gold is entering a seasonal upward trend in price. The American dollar is also showing weakness now, since the US Fed, has signalled that is slowing the pace of interest rate increases.
The overall market sentiment is still somewhat uncertain about the impact of rising interest rates which are continuing higher. Inflation will be longer lasting during this new investment cycle.
Even during market downturns, money can still be made while the market pauses and waits for a recovery in the economy. Gold company shares are often the first to make the larger run up in price, before a more substantial, overall market recovery.
This larger pause in market sentiment could prove extremely positive for all the precious metal producers!
So why not buy Torex Gold, one of the most profitable gold producers out there? They have made good profits even when the gold price was lower than it is today. Not many gold producers can make that same, claim to fame.
Today with the potential of an extended time duration for an overall market recovery, a huge rise in the price of gold company shares, may be about to happen.
We may be entering a strong phase of growth in the commodity sector including base metals as well as the precious metals.
Later in this investment cycle, even energy stocks may regain some former glory and upward momentum. Now many of these companies, appear to be stalled in price. Their former days of glory may one day return, as demand for energy, again increases in a more dramatic fashion.
But their time, is not now, while recessionary fears, still rule the day!
Gold and silver stocks may be about to begin their biggest run! Other companies which also represent good value, each sharing the prospect of continuing strong earnings growth and growing dividends, will be also be the better performers. These companies now represent, the better value.
Gold and Silver companies producing only losses or without any significant amount of earnings will also participate, as their investors hope for a more positive future earnings picture, if the gold price rises significantly.
But for some of these weaker precious metal producers, the price of gold, never seems to get high enough to make them profitable!
Torex Gold was profitable before, so everyone should know that higher gold prices will add substantially to this company's bottom line. That cannot be said for many of the other producers.
Is Torex Gold cheap? Of course it is! The market always looks ahead!
And long as the price of gold continues to rise, it will continue to remain this cheap, until the time that the market realizes, that it represents an extreme value and decides to drive it's price, substantially higher! One day it may not seem so cheap!
But today, that higher price, is not here!
This company is extremely highly leveraged to any rise in the price of gold. It it making good profits already!
The share float is low. And it is expected to remain so!
Profits now pay for all of the company's growth in infrastructure and will also pay for any potential future property acquisitions.
What is debt to a company like this? Nothing! They don't need any!
Two or three years, down the road, Torex gold will also become a copper producer. The copper price is also about to trend higher, longer term. But everyone already knows this fact, as well!
Give Torex Gold, a few more months, at least!
Longer term, it should also prove to be one of our better investments!
Dividends paid, may also help!
All the best! Java