gold stocks Archive
Alexander Green: ‘Enormous Opportunity’ in Blue-Chip Gold Stocks
by Alexander Green, Investment U Chief Investment Strategist
Monday, March 25, 2013: Issue #1997
For the last two years, I’ve been encouraging investors to reduce their gold holdings. But today we have an enormous opportunity developing in blue-chip gold mining shares. And there is one easy way to play it.
Let me begin by detailing a few of the many reasons to have gold in your portfolio. There are seven key reasons that “the barbarous relic” has long been sought after as a store of value:
1. Unlike wheat, corn or rice, it is durable.
2. Unlike artwork, it is divisible.
3. Unlike lead or copper, it is convenient.
4. Unlike real estate, it is consistent.
5. Unlike paper, it possesses value in itself.
6. Unlike aluminum or copper, the supply is greatly limited.
To continue reading, please click here...Gold Stocks: The Biggest Buying Opportunity in 25 Years
by Mike Kapsch, Investment U Research
Thursday, January 31, 2013
Don’t look now but gold stocks are cheap, really cheap.
Just take a look at this chart:
(*Proven gold reserves calculated with gold price at $1,655/oz.)
Today, a number of major gold miners trade for even less than the actual amount of gold they have on hand. That excludes probable reserves.
It also leaves out any other mineral reserves these companies have. For instance, Goldcorp produces silver, copper, lead and zinc – in addition to gold. Meanwhile, Yamana also mines silver, copper, zinc and molybdenum.
The bottom line: Right now could be one of the best buying opportunities you’ll ever find for some of the world’s biggest gold miners.
In fact, as The Wall Street Journal reports, “The price of an ounce of gold today would buy more stock in gold-mining companies than at any point in a quarter century.”
But what has kept gold stock valuations so low? And what makes gold stocks a worthy investment to consider today?
To continue reading, please click here...The Three Best Gold Stocks for 2012
by Luke Burgess, Investment U Research
Tuesday, March 6, 2012: Issue #1723
The gold mining industry is watching its production costs surge amid rising energy prices, inflation and increasing labor costs.
In 2012, Barrick Gold (NYSE: ABX), the world’s largest primary gold producer, says its total cash operating cost could increase 13% to 22%. Meanwhile, Newmont Mining (NYSE: NEM), another key gold stock, expects to see a 6%-to-14% rise in costs applicable to gold sales.
The industry is hoping that rising gold prices will buoy the hike in production costs. An annual survey of industry predictions by the London Bullion Market Association forecasts gold could top $2,000 an ounce this year.
The outlook – made by 26 leading precious metals analysts from the world’s largest bullion-dealing banks and trading houses – underscores bullish speculation of gold prices in the broader market.
All but two forecasters predicted that gold would surpass $1,900 an ounce this year, while 73% of those surveyed believe gold will top $2,000 an ounce.
Even though the expectations for gold prices are high, many of the larger gold mining stocks – including Barrick and Newmont – aren’t taking steps to significantly increase output in 2012. That’s partially because the gold industry has already ramped-up overall output over the past few quarters, and could be currently operating at near capacity.
Global gold production increased nearly 4% last year, reaching an all-time high. According to the World Gold Council, miners pulled 2,810 tonnes of gold from the ground last year – that’s nearly 100 million ounces, worth over $170 billion at current prices.
To continue reading, please click here...A Bear Market in Trust: Good for Gold Stocks
by David Fessler, Investment U Senior Analyst
Monday, December 5, 2011
The world markets held their collective breaths over the political spectacle regarding raising the U.S. debt ceiling. Ultimately, a half-baked plan that essentially kicks most of the cans down the road emerged.
Our trust that politicians would come up with something productive went out the window. As a result, the credit rating of the U.S. Government was lowered. In response, central banks around the world stepped up their purchases of gold.
Trust is still the issue. Now it’s the European financial crisis that’s in the cross-hairs. That will keep a floor under gold prices through 2012, and we could even see the metal breach the $2,000 an ounce mark. Once that happens, the bull-run in gold will likely take off like a rocket.
You could play this rise in gold by buying physical bullion, but not everyone’s comfortable with having tens of thousands of dollars of gold coins or bars at home or even in a safety deposit box.
A better bet is a proxy for the metal itself. The easiest way to do that is via the popular SPDR Gold Trust ETF (NYSE: GLD). It holds the physical metal in a large underground vault in London. Shares are issued and are priced at roughly 10 percent of the current price of the metal.
The investment objective of GLD is to mirror the price of the physical metal. The custodian of the trust and the holder of the gold is HSBC Bank USA, N.A.
The Best Way to Play the Gold Boom: Gold Mining Stocks
While GLD rose 23 percent in the last year, many gold mining stocks underperformed the metal.
To continue reading, please click here...Why Gold Mining Stocks Are About to Skyrocket…
by Mark Skousen, Investment U Research
Wednesday, September 21, 2011
Are you frustrated by the failure of gold mining stocks to keep up with gold?
I am.
While gold and silver are up 30 percent this year, the mining stocks continue to lag. Barrick Gold (NYSE: ABX) and Newmont Mining (NYSE: NEM), the two largest gold producers in North America, are break-even for the year.
Hecla Mining (NYSE: HL), the country’s largest silver producer, is down 35 percent even though earnings have doubled.
The major South African gold stocks, like Gold Fields (NYSE: GFI) and AngloGold (NYSE: AU), are down for the year.
The Gold Miners ETF (NYSE: GDX) has been extremely volatile and is break-even for the year.
There are exceptions, but the overall trend is… well, trendless.
What gives?
To continue reading, please click here...I Was Wrong About Gold and Internet Stocks and Real Estate
by Alexander Green, Investment U Chief Investment Strategist
Monday, August 15, 2011
I Was Wrong About Gold and Internet Stocks and Real Estate
In the summer of 1999, I warned my friends that they were playing with fire, that the rip-snorting bull market in Internet and technology stocks was likely to end badly.
Most of them scoffed – and were glad they did. After all, Internet stocks weren’t anywhere near a peak in the summer of 1999. I was early. It would be nine long months before the scaffolding began to shake.
I never dreamed the mania could go for so long. But it did. And it taught me a valuable lesson. You can’t make a rational estimate of when irrational behavior will end.
The same thing happened with the housing bubble seven years ago. Almost no one was buying my skeptical take. I talked to realtors who had been in the business their whole lives and had never witnessed anything like the dramatic run-up in prices that was occurring. Yet most managed to convince themselves – and their clients – that prices would only keep rising.
Which they did. Until, of course, they didn’t.
Now we’re in the midst of a spectacular run in gold and silver. When I bump into typical investors at cocktail parties or backyard barbecues, they invariably tell me they are loading up on precious metals. “It’s a no-brainer,” a Merrill Lynch broker told me just last week.
I agree. I think some investors have left their brains with the hat-check girl. Here’s why …
To continue reading, please click here...Why Speculators Might Want to Sell Their Gold Now
by Alexander Green, Investment U Chief Investment Strategist
Friday, January 7, 2011
Speculators should sell their gold.
I know most readers will disagree. But that’s okay. I’ve been down this road before…
So my opening line will only tee off the majority again.
But gold – now priced at more than $1,365 an ounce – is trading in La-La Land. And if you’re piling into it now, you’re taking a very poor risk…
Are These Gold Investments in Your Portfolio?
Don’t get me wrong… high-quality gold shares should be part of any well-diversified portfolio.
Unlike the metal itself, blue-chip gold stocks have delivered an average annual compounded return of about 12% over the past 50 years. And they’re not correlated with the broad market, which gives your portfolio higher returns with less volatility.
That’s why we own the Vanguard Precious Metals and Mining Fund (VGPMX) in The Oxford Club’s Gone Fishin’ Portfolio and AngloGold Ashanti (NYSE: AU) in our Oxford Trading Portfolio.
To continue reading, please click here...
