This Day On The Street
Continue to site
ADVERTISEMENT
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

Look What's Outperforming Gold and Silver

Speaking of low PE and PEG ratios, VALE had a nice day as well, up 7% -- matching its current 7% dividend yield. Incidentally, CLF also pays a 7.2% yield, which is a payout ratio of only 15%. VALE's payout ratio is a more uncomfortable but sustainable 52%. The following price comparison chart highlights the past four-year movements of VALE, FCX and CLF.

The big picture here is that this rally may have just begun!

VALE Chart VALE data by YCharts

Bottom line: The hope for major financial stimuli in the industrial sector of the world's economy is causing a massive shift toward revaluing these up-to-now disregarded companies.

If the Federal Reserve goes "all out" along with the European Central Bank and the Bank of China to light a big fire under the world's economic recovery prospects, well, we might just be in the early innings of a massive move higher in these stocks.

Also keep an eye on the gold and silver producers, or the sector as represented by the Market Vectors Gold Miners ETF (GDX). In the silver-producing sector I like the second-largest silver miner in the world, Pan American Silver (PAAS - Get Report), a well-managed company that produces over $2.5 billion in silver and looks quite inexpensive in light of silver's current move skyward.

Once the "smart money" and the big funds begin to take the rally in gold and silver prices seriously (think of the song "Our Love is Here to Stay") then the entire small-investor camp will jump on the shining wagon. That's when we'll see the same type of monster-rally in the precious metals sector that we're beginning to see in the industrial metals sector.

Those of us that were early to the party are now seeing a swift and (hopefully) sustainable rally with the industrial metals producers.

How long we have waited and the moment seems to finally have arrived. I'm hearing the late, great Etta James singing "At Last"!

As of the time of publication the author had positions in FNV, SLW, FCX, VALE, GDX and PAAS.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Jim Cramer and Stephanie Link actively manage a real money portfolio for his charitable trust- enjoy advance notice of every trade, full access to the portfolio, and deep coverage of the latest economic events and market movements.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FCX $11.75 0.00%
FNV $40.54 0.00%
GDX $13.75 0.00%
PAAS $6.24 0.00%
SLW $13.08 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs