NYSE: GFI Archive
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...
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 YearTo continue reading, please click here...