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Bullish on gold? You may look to out-of-favor producers like Newmont (NEM) that have been in the...

Bullish on gold? You may look to out-of-favor producers like Newmont (NEM) that have been in the doldrums. The gap between the metal and the miners is at an all-time high, but producers are focused on bringing down costs. And though gold's down to around $1,568/ounce, Morgan Stanley argues factors driving the recent gold bull market are still in place.
Comments (6)
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    I agree but Newmont is not one of my favorites right now. I think Barrick, Eldorado, Brigus, and Yamana are better picks.
    27 May 2012, 04:18 PM Reply Like
  • Rupert Nicholson
    , contributor
    Comments (347) | Send Message
     
    Ray Dalio's buying up gold right now. That's all I need to know. Bullish on gold...
    27 May 2012, 06:35 PM Reply Like
  • Dan Naumov
    , contributor
    Comments (355) | Send Message
     
    So a P/E of 46 is considered "out of favor" these days? Riiiiight.
    27 May 2012, 06:36 PM Reply Like
  • 867046
    , contributor
    Comments (398) | Send Message
     
    I look forward to a more general SA article on unpopular gold producers, unpopular metal producers with interest.
    27 May 2012, 09:21 PM Reply Like
  • evildoer
    , contributor
    Comments (25) | Send Message
     
    I'm feeling the itch on gold and silver. I usually wait until sept-oct to accumulate but I think they are gonna pop in a big way before the historical fall breakout. I could be wrong but who knows anymore with all the manipulation.

     

    QE infinity -> Long gold, silver
    28 May 2012, 12:57 AM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    That is the hard part, trying to figure out the bottom.

     

    I expect there to be a washout event in the coming months but if you can handle a 5-7% short-term loss it makes sense.

     

    My biggest problem and concern at this moment is an almost perfect correlation with the S&P which should not be happening.

     

    The valuations for gold and silver stocks right now are very compelling.
    28 May 2012, 01:36 PM Reply Like
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