Precious Metals Companies With Promising Growth Potential (undervalued gold, silver stocks)

&nbsp&nbsp The gold rush is on and miners Yamana Gold (up 16% last month), Agnico-Eagle Mines (up 5% last month), Buenaventura (up 8% last 3 months), First Majestic Silver (up 20% last 3 months) are benefiting from the surge in price while others can't seem to catch a break as evidenced by their volatility, leaving investors frustrated angry and confused (those changes in stock are as of September). Here are some companies that have been through a rough patch (like Yamana gold last year) but could be in the money over the next couple weeks if gold and silver prices continue their climb but in a less volatile manner:

European Goldfields - Update for November: For 9 of the last 10 months (down about 29%) due to a longer than anticipated permit review process in which Greece decided whether or not to grant approval for the Olympias and Skouries gold-copper porphyry projects in northeastern Greece (permit initially applied for in 2006) (even after decided the stock continued to fall slightly, down 13% in the 3 months leading to mid November). Skouries alone has the potential to produce at a rate of 350,000 ounces of gold equivalent (about half of that coming from silver). Since the permits were granted, the company hasn't even made up the 9% stock decline experienced over the two months leading up to the decision (July 12, 2011). Base metals like copper continue their lacklustre showing ($4 August 22, 2011 compared to $4.45 on July 29th) making the copper assets less attractive.

The two new permits take away a lot of the risk that scared investors away from the company. Including projects in Turkey and Romania, European Goldfields appears to be well on its way to becoming Europe's largest gold producer by 2013-2014 (over 400,000 ounces of pure gold/yr doesn't include silver and copper). Construction of the mines also won't be a problem with Greece's largest construction company, Ellaktor as its largest shareholder (19.36%). More reason to optimistic about the company outlook: takeovers! Eldorado Gold and Centerra Gold both operate projects in some of the same areas and would probably overpay in a takeover. Also, European Goldfields is considering a move to the main London Stock Exchange index moving up from junior AIM.