What is “Dollar Cost Averaging” and why does it work?                                    By Bob Pellerin and K.C. Grainger, CanadianMineAnalysis.com   1. The cyclical price action of the markets often brings many investments into a traditionally attractive buying range. During the downside moves, many stocks can be found selling at prices that have proven over the years to be excellent buying opportunities. The most successful investors make their commitments after a severe decline in the prices of these stocks while pessimism is still running high. Simply stated, they take advantage of the market’s cycles!     2. Dollar cost averaging is a method of investing equal amounts of money regularly and periodically over specific time periods (such as $2000 monthly for 12 months) in a particular investment(s) or generally buying more shares of the same stocks when they decline in price. By doing so, more shares are purchased when prices are low and fewer shares are purchased when prices are high.     3. Why it works? The primary benefit is to lower the average cost per share of the investment, giving the investor a lower average cost for the shares purchased over time. Investors should note that Junior small cap mining stocks have enormous price volatility both up and down, so if the fundamentals of a stock(s) still justify investment, it merits even more attention at the lower prices. It can very effective for the Junior mining stocks as stocks often lose […]

Canadian Min Analysis 1-Is the price of gold being manipulated? We think it is, how can governments issue  debt at under 1% to 3% with some food and energy prices rising over 40% in some categories over the last five years? Central bankers do not want to see gold moving up. And isn’t it odd how suddenly in a quiet market we see large amounts of gold on the Comex suddenly sold in what seems to be “market orders”? In other words,  it seems that the gold is being sold, not trying to get the best price for the client but with the intent to affect the price of gold-down!  In the opinion of many, paper trades such as those transacted on a commodity exchange have been a ruse to create an image of price weakness in gold and it has worked.  2-Over a year ago, Germany requested  delivery of its 350 tonnes of gold held in “safekeeping” at the New York Fed and for some reason it could not be delivered. Germany was told that they can expect 50 tonnes per year for the next seven years. Of course, we don’t know, but we are told that they have received a mere 5 tonnes so far. The fact is that if delivery is demanded by gold bullion buyers throughout the world, the price of gold could rise dramatically just on that basis.  3-Are central banks colluding to keep gold down?  We don’t know, but keep in mind that some […]