Will January effect give gold and silver miners a bounce?
Louis James, senior editor of the International Speculator, Casey Investment Alert and Conversations with Casey: We certainly had plenty of tax-loss selling, and I think most investors who know resources see the sector as close to bottom, so, yes, I do expect healthy January buying. I'd differentiate that by commodity, however, as bad economic news could push oil and copper further down, while pushing gold and silver up, and the January effect won't be enough to offset another sharp decline in industrial commodities.
Low-cost producers are the obvious candidates for dollars returning to the market, followed by developers with great projects with positive economics already in hand. Grassroots exploration will have its day in the sun again, but not on the back of January buying; I expect we'll see that when the whole market gets frothy again.