GOLDEN MINERALS...

originally published February 17th, 2014

• Golden Minerals looks like a most attractive speculative play here. Despite its name it is primarily a silver stock. On its 4-year chart we can see that it has suffered an exceptionally severe decline from its peak late in 2010, so that it is very cheap indeed as it is now only about one 28th of its price at its high. While being cheap is not in itself a reason to buy something, this stock has shown strength in recent weeks and demonstrated that it is going to rally with the sector, as we will soon see. Volume indicators, which have been weak, have turned higher with the price as it has started to recover this year. The current tight bunching of the price and its moving averages indicate a tight technical situation that could trigger a powerful rally.

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  The conclusion is that Golden Minerals is an attractive speculative play here with the potential to make large percentage gains in a relatively short timeframe. The stock trades in good volumes on the American Stock Exchange (AMEX). The company has just under 50 million fully diluted shares in issue, which is reasonable.

  Golden Minerals website

  Golden Minerals Co. AUM.TSX, AUMN, closed at C$1.03, $0.93 on 14th February 14.

  
  Posted at 6.30 am EST on 17th February 14.