JudeJin

South African Gold Stocks: No Margin of Safety

"While I understand that the value of gold and silver mining companies is miniscule compared to say J.P. Morgan, there is the issue of compensation during the time that you wait for the industry to be recognized for its true value. This is where I'm interested in the dividend for gold and silver companies. Simply being "low priced" isn't enough to get me to throw caution to the wind."

so i guess you do believe in the value in the gold/silver mines. but your obssessive concern with dividends prevents you from buying them right now.

i predict that they'll start to pay handsome dividends several years down the road when the gold price is much higher and their stock prices are much higher too. if you insists on seeing dividends before buying, you'll probably miss the whole show. i guess you'll insist that you'd rather miss it than violate your principles.

investing is not about principles. it is about risk and return.

currently, the upside in gold/silver mines is far outweighing the downside.

South African Gold Stocks: No Margin of Safety

the market cap of jp morgan alone equals to all of the gold miners listed in the US combined!

try to compare this with where it was in the late 1960s, you'll definitely find the opposite answer.

there's too much margin of safety in the gold/silver miners nowadays than any time in history!

South African Gold Stocks: No Margin of Safety

i think the reason that the dividends are not there this time around is because the gold miners were almost detroyed during 1980 until recently. abx just lost $5 billion hedging(betting) gold futures. had abx simply didn't hedge, abx should have been paying handsome dividends in the past 3 years!

before nixon got rid of gold standard, the gold miners had been doing far better than they did during 1980-2000