“Commodities have dropped 15% in the last three years. As a result, investors don’t want anything to do with commodities. According to Barclays, commodity-fund investments fell by a record $88 billion to $332 billion this year — almost all of it in metals and agriculture commodities.  Lower prices this year have already forced mining companies to cancel expansion plans and cut costs. The fact that big mining companies, such as Vale and Rio Tinto, are aggressively cutting capital spending tells me we’re getting close to a bottom.  Nobody wants to invest in commodities and industrial metals now. But the recent strong price action in the sector suggests ignoring it is a mistake.”

http://thesovereigninvestor.com/2013/12/30/hated-sector-will-surprise-everyone-2014/

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“The underperformance of gold and silver in particular creates the potential for a very profitable rebound rally in 2014. Larry believes gold and silver prices should bottom early next year.  If that’s the case, there’s even more upside potential in mining stocks than in precious metals for one simple reason: Gold and silver stocks provide leverage. As the price of precious metals rise, the production of mining stocks and their proven reserves become even more valuable and profitable than the rise in physical prices.  In other worlds: The cheapest way to own gold today isn’t coins, or bullion bars, or even ETFs that track physical gold — but gold and silver mining shares.”

http://www.moneyandmarkets.com/a-glittering-investment-gift-for-2014-57187

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