silverwood

Time for the 'Commodities Contrarian Contango' with Precious Metals and Energy

Marc, all your proposed pricings are very plausible considering we have embarked on the Zimbabwe style monetary policies. In the mean- time all the market managers are working overtime to create the smokescreen.

Commodities Will Lead the Recovery - Matt McCall

I agree with Matt McCall that silver is shaping up to be an excellent play. He has hit on silver's main supply fundamental, which is byproduct base metal mining. Couple this with silver's monetary role and the poor mans gold and silver prospects are bright.

A Golden Investment in 2009 and Beyond

After reading this article, it appears that the author is writing it to himself. He is trying to decide if he should invest in gold. After all it is apparent that he really doesn't understand gold as he states;

"I had discounted gold as an investment because in essence it is a speculative commodity with little utilitarian purpose beyond that of jewelry."

But now he says;

"I am not as bearish on gold as I once was, but I still see it is a hedging strategy in case stock markets start to tumble, rather than a pure play, long term investment."

Stock market hedge? Gold is MONEY! pure and simple and it trades as such. What gold is reacting to is a global movement by Governments and their central bankers to print more fiat money therefore debasing their currencies. That is why you are seeing new all times highs of gold in terms of Euro, Briitish pounds, Canadian $ etc. Shortly a new higher high coming in US$.

Dennis Gartman on Gold, Oil, Government and the Economy

DG:" It’s more that I think gold has quietly moved up the ladder of reservable assets, a reservable asset being one that central banks are willing to keep on their balance sheets, all things being equal. Dollars are still the world’s dominant reservable asset. The Euro is next and gold is probably the third.

I think that’s all that will drive the gold prices quietly higher. I am not a gold bug; I don’t think the world’s coming to an end. I think the history of man is happen to be modestly bullish on the gold market, but not because of inflationary concerns."

So, according to DG a Gold Bug thinks the World is coming to an end? Now Wikipedia's definition which I believe to be correct...
"The term gold bug is a (sometimes pejorative) term used to describe investors who are very bullish on buying the commodity gold." According to that definition DG is a Gold Bug.

DG also believes the only driver of gold will be Central Banks. You mean to say private individuals seeking wealth protection from vast amounts of excess liquidity being supplied to bail out troubled entities and stimulate economies globally will have no influence on gold?

Basically, I would agree with many of DG arguements but the above statements makes me shake my head.

ETF vs. Mutual Fund: Two Ways to Invest in Gold Miners

Although I agree with the author that buying a gold mutual fund or gold ETF is a good idea, this should be done after you have in your possession the physical metal (gold and silver). The physical metal is insurance against a currency collapse, or severe devaluation.

I disagree with the author's view that gold is just a commodity and it's valuation is only derived from fear of inflation. Gold is a currency and trades as such. Gold is real, natural money.

AS for the choice of investment the authors has suggested FSAGX, the mutual fund would be better for those investors who are seeking long term buy and hold stratergy, while GDX, the ETF would be better suited to those more prone to trading. Personally I would suggest some exposure to the junior explorers as that sector has been completely trashed and careful due diligence on selected companies could prove the greatest rewards.

Wellington West Studies Eight Gold Equities, Picks Two Favorites

I have to agree with the authors on their pick of Yamana Gold (AUY). They have a very capable management with CEO, Peter Marone being quite possibly their most valuable asset. I am biased because I am long AUY and have increasing my position during weakness since my 1st acquisition in 2003.

3 Gold Miners That Stand to Sparkle from Growing Demand

Yes, I agree with the author's stocks picks and there are others that should do equally as well. GG, IAG. PAAS and GBG to name a few. All the gold/silver miners were sold off severely. The fundamentals are improving for gold/silver and taking a longer term view this appears to be a good entry point to accumulate said stocks.