NYSE: KGC 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 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...