Doc 224899

Bargains Still Abound in a Few Gold Miners

Long term upside? TXX Tirex, Canadian exploration stage miner, is sitting on mountains of ore in the Mirdita region of Albania, which could rival Oyu Tolgoi in Mongolia in ounces extracted in the next 5 years, and their share price has plummeted to the point where an upside move is inevitable. The only question is time frame, since TXX may have to simmer a few years before it gets exciting.

Gold Stocks: The Ultimate Options Strategy

If you look at Bruce Pile's disclosure list, it should tell you Bruce likes gold stocks, and some of his positions are "advanced investor" stocks (NG, NXG, RIC, GRS, NGD, EGO).

Bruce, where were you able to get XRA shares?

Exploring Gold Miner Stocks: Mid-Year 2009 Analysis

Go to the Lihir Gold web site, and look at the maps and photos of the PNG Lihir Island mine. It looks like the ocean is going to pop through a thin barrier and flood into a huge open pit that is much lower than sea level. And that's on a day when the weather is calm......

South African miners aren't undervalued. They are appropriately valued, based on the inadequate power grid they rely upon that shows no hope for being improved.

NEM is so big, bulky, numb and stalled that it is unerringly boring to investors.

BVN is in Peru, and Peru is a difficult place to operate gold mines.

EGO is in Turkey (a ferocious Islamist government that may nationalize the mines any day to finance a military push into Kurdish Iraq) and China (whose government has no qualms about changing corporate operating conditions in a heartbeat to suit its self-serving agenda).

KGC has mines in Russia (you can't trust 'em), and three states in the USA (over-regulated, too many lawyers and lobbiests). Brazil is the one good place to mine they are set up in now. If they buy Yamana Gold they'll have a pipeline for future production with low costs of production.

Barrick may beat Kinross to the punch and scoop up Yamana first.

So it's shaping up to be a nice year or two if you're long AUY.

How Investors Can Trade the Dollar

Kristjan,

A good gold miner stock will leverage the gold market, and may be more predictable and more profitable than a double long gold ETF. It takes a little study, and it helps if one can hold one's breath for more than 60 seconds, but the miners are where leverage can be found outside the ETFs.

Having played this game for the last couple of years, I'd say it is useful to remember that gold swings in and out of being tied to the dollar, to global currencies, to oil, to treasuries, and to broad market indices. It also changes faces and one month it will be a safe haven in a crashing market, and next month it will be tied to strong commodities. It also wears three hats at once sometimes. Finally, it is also subject to behind-the-scenes manipulation, and to "legitimate" regulation by central banks and the commodities exchange(s).