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Long a buy and hold investor, I now believe that buy and hold has to be re-evaluated in a world of ever increasing, instant information and huge gyrations in markets all over the world. A value investor at heart, I anchor my portfolio with conservative funds and blue chip dividend stocks, but... More
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Retirefund
  • Gold Miners are in the drivers seat, during these economic head winds.  0 comments
    Jul 11, 2011 4:57 PM | about stocks: GLD, ABX, KGC, SGRCF, GOLD, AUMN, PMMTF, PMTRF, ASA, SLV, SLW, GLWGF

      Sacramento Gold Miners logoImage via Wikipedia

    I like gold miners this summer!!!


    I especially like gold miners that do not have any of their production hedged.

    I like gold miners that are producing lots of gold right now!

    I like gold miners whose production is increasing at this writing.

    I like gold miners who have more than one producing mine!

      I like gold miners whose infrastructure and operations are sound, with no forseeable production problems!

    I like gold miners that operate in safe mining jurisdictions, with no political overtones!

    I like gold miners that are well lead by smart management who show their smarts in an ongoing basis, with great execution of clear business plans!

    I lke gold miners that make money, and that will continue to make money, no matter what the market does.

      I LIKE GOLD MINERS!!!!!

    For those of you who have read past articles, you know I am invested in physical gold and silver. Make no mistake, I view these as great investments in this environment. However, this year, it is the gold miners, especially those miners meeting the above criteria, that will out perform the markets this fall, and beyond.

    The U.S. dollar is shrinking, and will continue to shrink in the long run. Over the past six months, the U.S. dollar has lost 10% against the Euro!  THE EURO!, where countries are lining up from the smallest (Greece) to  some of the largest (Spain, and now Italy) at the European credit window.

    The European union could, on paper, save Greece and maybe even Ireland and Portugal. But Spain and Italy are both way too big to save. There is now no doubt that the Euro is in crisis and may not even survive, at least in its current form.

    The macro picture grows dimmer with each passing month.  The debt ceiling crisis in the USA, and the muddying of those waters by both political parties, is becoming the 800 lb gorilla.  The Tea Party will have none of it.  Their patrons in the Republican party, at the insistance of the TP, are playing brinkmanship with the U.S. economy at this writing. They do not want to extend the ceiling and will not approve ANY kind of tax increase, even though every expert in the field feels tax increases absolutely have to be part of the overall solution to U.S. debt. Democrats are once again, sitting on their hands. The unemployment rate is printed at just over 9%, but if you believe that, I have a bridge to sell you. Fully 14.5% of America is now on food stamps!  (That's right, 1/7th of the pupulation)

    In comparison, the debt problems of  Greece is barely a 40 lb monkey in the mechanics of global markets. Even if the U.S. debt ceiling gets raised in the medium term, where does that leave the USD, especially as QE2 ends, and there are not enough buyers of U.S. treasuries to keep up the charade.

    The new Gorilla stumbling into the zoo of international finance  is the debt problems of Italy, whose economy, over 1 $Trillion and about 25% of the Eurozone, might be considered a 700 lb Gorilla.  Greece, Ireland, and Portugal , are one thing, but Spain and Italy are in a different financial league, and if they go, so goes the Euro. Spain has 20% unemployment right now and Italy is more in debt that any of the others.

    The golden elephant in the room is, India, which now buys more gold than any other country.  China, viewing gold as an alternate currency, however, is catching up. They now allow their citizens, for the first time, to hold physical gold. The Chinese government has actually been quietly encouraging its citizens to do exactly that. Other countries increasing their purchasing of gold include Brazil, Germany, Russia, Indonesia etc.  European banks, and by proxy, U.S. banks are no place to invest right now. Get out while you still can.

    These problems are not new.  The tipping point was circa 2008, and the storm was sidetracked by the biggest financial experiment in history. Yes, there will always be "some" good stocks to buy, but for now:

    I want to own gold, and gold miners, of the best quality. I am buying them now!


    My current picks:


    1. SanGold
    2. Barrick
    3. Kinross
    4. Brigus Gold

    In that order.

    Happy investing

    HP

    PS: If you want to speculate with the big boys....

    Nautilus Minerals (Seabed mining)

    If you want to speculate on the cheap....
    TNR Gold (Alaska)



    Stocks: GLD, ABX, KGC, SGRCF, GOLD, AUMN, PMMTF, PMTRF, ASA, SLV, SLW, GLWGF
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