NYSE: GG Archive
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...
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...
by Justin Dove, Investment U Executive Editor
Friday, August 12, 2011
It appears large-cap mining stocks haven’t quite caught up to the 2011 gold rush.
Stocks of companies like Newmont Mining Corp. (NYSE: NEM), Barrick Gold Corp. (NYSE: ABX) and Goldcorp Inc. (NYSE: GG) seem to be correlating with the S&P 500 just as much as they are with the price of gold. Even with margin requirements lowering gold from its record highs, the increased margins for these companies should push them higher.
Some could view this table and argue that gold mining stocks have little correlation to gold, and therefore aren’t good investments to track gold. While the table does show that they haven’t tracked gold very well this year, there’ll have to be a period of catch-up.
With gold prices so outlandish, the margins for these companies will be greatly increased over the next quarter. The question is, can gold margins remain this high?
Gold Prices Experiencing Parabolic Seizures
There’s a ton of news reporting that gold prices are going parabolic. It almost sounds like some sort of seizure.
But if you can, think back to algebra class. That big hump-shaped graph for the quadratic formula was called a parabola.
And what these technical analysts are saying is that gold’s price is increasing rapidly. Eventually, the graph will look like the hump of a camel. What we don’t know is where the peak will finally flatten out and when the prices will come back to earth.To continue reading, please click here...
by Karim Rahemtulla, Investment U Research
Tuesday, February 2, 2010
It took a while, but an increasing number of investors are starting to realize the powerful benefits behind the options market. Namely, to make money and hedge against risk.
In fact, the rising popularity has resulted in the options market being the fastest-growing segment of the entire investment arena.
And with more and more people getting involved, the folks who design the options trading rules are making the most significant changes in more than three decades.
But no matter whether you’re a fresh-faced rookie or wily veteran, these changes impact all options investors directly and should make the trading process much easier and less error-prone. I found this out myself for the first time yesterday morning…
The Options Market’s Confusing Symbol Setup
I’ll bet that the one part of an options trade that puts people off is the confusing symbol setup.
For example, when making a call or put trade in the old format, you would enter a symbol made up of various letters.
Let’s take the Goldcorp (NYSE: GG) March $30 call option. The symbol you’d ordinarily enter would be “GG-CF.”To continue reading, please click here...