This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

6 Precious Metals Stocks Set to Explode

BALTIMORE (Stockpickr) -- Another "perfect storm" is forming in the precious metals market right now, and market players need to be paying attention.

Gold and silver futures contracts are both technically setting up to explode higher. Breakouts in both metals are already underway as rising geopolitical fears, European sovereign debt issues and a threat of a U.S. government shutdown loom in the markets. To put things into context, gold futures hit a new record during Asian trading hours Wednesday, while silver printed a new 31-year high.

The threat of a U.S. government shutdown is probably the biggest catalyst driving up metals prices here. This is such a serious issue because it's all about balancing the U.S. government's budget. This is not just a direct threat to the world's reserve currency (the dollar), but it's also a threat to confidence in the American economic system. Negotiations are under way to solve the problem, but if the current administration can't come to an agreement and soon, a shutdown could start as soon as Friday.

If a shutdown does indeed occur, look for precious metal prices to go up every single day that the government is not open for business. Even if the shutdown doesn't happen, most analysts think that Congress will raise the debt limits, which would also likely cause precious metal prices to go up.

Related: 5 Tradable Technical Setups for April

Treasury Secretary Timothy F. Geithner said on Tuesday that if Congress doesn't raise the debt ceiling before May 16, the U.S. would have to cut critical payments and interest rates will surge.

If all of this wasn't bullish enough for metals prices, we also have a new war raging in Libya that seems to have no end in sight. On top of that, we have ongoing geopolitical risks in the Middle East due to fears of more social unrest in Saudi Arabia, Yemen and Syria. Let's not forget about Portugal, which is reportedly seeking an EU bailout before June.

This quickly developing "perfect storm" makes me think one thing: Don't be short anything tied to the gold and silver complex. I want to be a buyer here, because the technicals are acting in concert with the fundamentals, which bodes well for higher prices.

With that in mind, let's take a look at a number of precious metals stocks that look ready to explode.

1 of 7

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs