Brad Zigler

Gold Stocks Not Driven by Larger Market

But it DOES matter. Perhaps not for you, but certainly for those yet to acquire an interest in gold. For them, the differential performance potential of gold stocks versus bullion is VERY important.


On May 05 10:04 PM Sakata wrote:

> In response to the first two comments:
>
> I bought a bucketful of about 50 pink sheet miners back at the end
> of October when they bottomed out. So far I have had 17 which doubled
> and three of those tripled. I had a few losses of course, but I am
> up 43% on the bucket load.
>
> But am I smug? Not even close! GDX is up even more (do hold a sizeable
> junk of that also) so I probably could have done better. I also have
> quite a bit of physical silver and gold and they are up more than
> the pink sheet stocks.
>
> So what is the point of this post? It really doesn't matter how you
> are positioned in the mining and metals sector. As long as you are
> in it then you made a whole lot more than anyone else over the last
> six months. And you are going to make a lot more in the coming years.
> So let's not get hung up on small, short-term changes. The wise people
> are in this for the long haul and don't worry about what happens
> over a relatively short six-month period.

Low Gold Price a Buying Opportunity

Selling gold from IMF reserves may increase the supply of DELIVERABLE gold, but it's already been counted in above-ground stocks. The effect on prices may not be as dramatic as you would imagine, especially if the gold moves from the IMF to another central bank.

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Another Way to Hedge Gold Stocks

Using DZZ hedges gold volatility, not the equity or management risk embedded in a stock's price.

Thus, with gold volatility suppressed, the value (negative or positive) of the company's management talent shines through (filtered through stock market beta, of course).




On Dec 02 08:59 PM Georealist wrote:

> Just a few things that need some light..First.when someone BUYS DZZ
> they are most certainly NOT hedging AUY or any other mining stock.
> They ARE hedging (establishing a Double Short positions) gold..<br/>Minin...
> stocks move..more thanone would hope..in alternate universes..and
> an investor is certainly not covering specific risk in AUY...
>
> I have a little different take on the whole long position side.....and
> the short. I'd BUY gold (GLD) any time we move to a standard deviation
> below 2 for the 52 week moving average. I'd go long DZZ (in a conservative
> averaging in basis!) at 2 or 3 standard deviations ABOVE the 52 week
> average gold price.
> It's all about the percentages baby...they didn't build Las Vegas
> going all in.