ASTROLOGERS FUND, INC.

METAL MINING FORECASTS

2012/2013  INTERMEDIATE (IT) / LONG TERM (LT)


"The cheapest long term protection against the continuing US Dollar decline is GOLD."

© The Astrologers Fund, Inc. Last Updated October 2012:


Q4 2012 Gold FV $1475 = Commodity FV: 12155 + Currency FV: 1455 + Inflation Metal FV: 1280 + Crisis FV: 1950 
 Silver above $37 FV is a bubble- FV < $26
Please see Gold/Silver 2012 for more

We believe it is a 50-50 proposition as to whether gold prices will be higher or lower in 2013.  One primary input is the November US election, but they are others.  While we are currently in favorable seasonal pattern for gold (Fall/early Winter), we are often inclined to trade short these metals on many days as we are long. This was especially true of silver over $36 whose stellar out performance since 2010 we forecast to wane post April 2011. We had suggested shorting silver at $37 and again at $31 earlier this year, but when Silver did not break $26, we had to cover.  We are likely to reshort again, however, the astro is not as favorable as before and hence this would be more a fundamental/technical play. 

 

But even should gold only average $1475 or even $1200 for the next 3 years that represents tremendous cash flow to many low cost producers.  By some measures gold and silver stocks are overvalued, while by others they are not. No matter. I prefer to own quality “story” small and midcap precious metals companies with good exploration and development stories. 

 

 

 

Below are some of the stocks we are looking at. 
We plan to do a number of periodic updates as appropriate in 2013.
Also note that in 2012, we are quite bullish on copper (to $4OB) and select copper stocks.  Hence we tend to like copper/gold plays.

Red indicates we have reached or changed price target - up or down - after quarterly forecast.
Blue indicates we recommended buying in some portfolios.

12 AFUND PRECIOUS METAL STOCKS
Ticker
ST
IT
Value
  2012 - 2013
Target
AGNICO-EAGLE AEM 3 2.5 46 56
AURIZON AZK 2.5 2.5 5.50 6.50
ALEXCO RESOURCES AXU 3.5 3 5 7.50
FRANCO-NEVADA FNV-T 3 3 $C 45 $C 55
GOLDCORP GG 3 2.5 46 53
I AM GOLD IAG 3 2.5 16 20
NEWMONT NEM 3 3 50 61
PRETIUM PVG 2.5 2.5 13 17
SEABRIDGE SA 3 3 20 24
ROYAL GOLD RGLD 3 3 75 88
SILVER STANDARD SSRI 3.5 3 18 20
SILVER WHEATON SLV 3.5 3. 27 35
GOLD*
 GLD
 2.5
 3
 1475
 1420-1920/2080
SILVER SLV 3.5 3 18/26 18/26-40
GOLD/SILVER INDEX
  XAU
 3
 2.5
 200
 225-250
GOLD BUGS INDEX
 HUI
 3 3
 450
 540
AMEX GOLD MINERS EFT GDX 3 3 46 56
AMEX JUNIOR GOLD MINERS ETF GDXJ 3 2.5 24 30
* For WSNW readers worried about the US government confiscating gold again (not my concern), ETF Securities recently launched ETFS SIVER TRUST [SIVR) and ETFS GOLD TRUST (SGOL).
Both funds are 100% backed by the physical asset held in Switzerland, which is favored because it is believed to be out of the sphere of influence of the United States and Europe.
Others may wish to look at the Central Fund of Canada (CEF) which is a closed ended commodity mutual fund that primarily invests in physical gold and silver.

Five Higher Risk/High reward small and microcaps that we might buy on WEAKNESS at this time (Q1 2012):

COMPANIES CURRENTLY ON WATCH INCLUDE:

Gold:   AMC-T, ASM-V, AUY, BCG-V, EMD-T, EVR-V*,  ICI-T,   LVN-V, XRA, MAO-T, MUX, NEM,NFR-V, PGZ, REN-T, SA, SCM-V, CLD-V

Silver:  EDR-T, GPR-V, FR-T, HL,  IPT-V MAG-T, OK-V, SVM-T,  SAC-T

Copper: OMN-T, DM-T, PHI-V, RVM-T

Other:


MINE SUPPLIERS
EGD-T , JOYG, MDI-T

PRE-WATCH
Casablanca Mining (CUAI).


    
1
STRONG  BUY
2
OUTPERFORM
3
HOLD
4
UNATTRACTIVE
5
SELL
0
NO OPINION

SUGGESTED USE:

Ideally, one buys at a value price or better, stocks with a 1 or 2 rating.  In our view, one should NOT buy price alone.  For example, just because a stock is fairly valued, if it had a 4 or 5 rating, it is best to avoid or under-weight.  However, if a stock were well below our value price and it has a 3 or better rating, it could be a profitable trade or good investment.  Remember, unless we are your personal money manager, ALWAYS use our ratings IN COMBINATION with your own research or those of your financial advisor or broker.

* Afund client.  See Disclaimer
 Please read our Disclaimer for more information and note that my clients and I are shareholders and may act in the open market.

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