NYSE: AUY 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...Buying Gold? Better Keep An Eye on India’s Weather
by David Fessler, Investment U Senior Analyst
Tuesday, August 23, 2011
With investors flocking to the barbarous relic, the $64,000 question is: Is gold in a bubble or can it go higher? What really affects its price? Who’s doing all the buying? How’s it being purchased? And, are gold stocks still a “Buy?”
Investors contemplating an investment in gold at this point really need to understand the answers to all of those questions before making a purchasing decision.
Let’s turn to the World Gold Council (WGC) for some answers. It just released its latest quarterly report, and the Council reveals some startling information once you dig in… especially how India’s weather affects global demand for the metal.
How Are Investors Buying Gold?
According to the WGC, here’s the breakdown of the second quarter 2011 (year-over-year) global demand growth for gold:
As you can see from the above numbers, investors are flocking to physical metal and away from ETFs. They want to hide it under the mattress or bury it in the backyard.
The growth in coin sales in the third quarter seems to have reversed itself from the second quarter. The WGC reports strong demand (up 13 percent) for bars so far in the third quarter.
Gold Mining Stocks… Mostly Ho-Hum Over the Last Year
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