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!

3 Precious Metals Producers Poised to Prosper

NEW YORK (TheStreet) -- As Wall Street and Main Street await what I hope is surprisingly good news from the lips of Federal Reserve Chairman Ben Bernanke, the precious metals sector is quietly poised for an explosive upside rally.

If Bernanke disappoints at Jackson Hole that rally will probably be put on hold.

We've seen this scenario play out before, and it reminds me of the summer of 2010. After Bernanke applied his version of "the golden rule" (He who has the gold makes the rules), the gold and silver producers had one heck of a rally.

Take a gander at this chart comparing the price moves of the Market Vectors Gold Mining ETF (GDX) and the Global X Silver Miners ETF (SIL) over the past four years.

GDX ChartGDX data by YCharts

You can plainly see that at the beginning of 2010 a bottom was established for both gold and silver producers, and that in the summer a base was established from which to launch an impressive skyward rally.

The chart also shows similar base-building that led to the current uptrend beginning in August 2012.

Caveat: The Man with the Golden Rule (Bernanke) may play cat-and-mouse with us for a while longer, causing the current rally to stall or retrace some its gains. But don't be fooled.

At some point between now and Sept. 13 when the Federal Open Market Committee gives its quarterly assessment of the U.S. economy and Dr. Ben gives the FOMC monetary policy statement, we're likely to experience "lift-off" in the precious metals sector.

There are two stocks I believe will do especially well in the gold sector and one in the silver-producing business.

Let's begin with Yamana Gold (AUY), which has a revealing three-month chart that not only show its trajectory but also how flat the 200-day moving average has been. This stock has become a favorite of the better analysts like our own Jim Cramer for good reason.

Yamana is fully committed to the exploration, development and production of its mineral properties and it primarily focuses on gold.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • 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