texpat

'Dr. Doom' Bearish on Gold

Unfortunately Roubini is clueless when it comes to gold.

Gold Bugs Are Warned, Again

When gold puts in one of its rhino horns, the mining stocks don't keep pace. They know that a correction and consolidation are imminent. In 1980, the peak in the mining stocks came well after gold's rhino horn.

U.S. Dollar at a Crossroads – Is Gold’s Rise Poised to End?

The US dollar has passed the event horizon. Gold will eventually go to the moon.

Why You Should Own Gold and Silver Mining Stocks and Warrants

When you buy using a pink sheet symbol, you're still buying the Canadian stock. Depending on your broker, there are six drawbacks: (1) less liquidity and wider bid-ask spreads if trading only on the pink sheets instead of on the TSX; (2) higher commissions when your broker executes trades on the TSX; (3) getting screwed on CAD-USD conversions; (4) the spread taken by the market maker; (5) slow order routing; (6) no real-time quotes. In my experience, Schwab (online) is excellent: (1) trades on the TSX but uses the pink sheets if the price there is as good or better; (2) same commissions as for US stocks; (3) CAD-USD conversions at the spot rate, which is unbelievable; (4) about a 1% cut on each trade: 2 cents per share for a stock over $2, 1 cent per share for a stock in the $1 to $2 range, and 1/2 cent per share for a stock under $1--these are factored into the execution price, so you have to adjust limit orders accordingly; (5) order routing in seconds most of the time, with a significant delay maybe 2% of the time; (6) real-time quotes using the pink sheet symbol, but not with the number of lots bid and asked.

On Jun 18 03:32 PM mlyn wrote:

> It seems to me many Canandian junior mining companes may be pink
> sheets in the US market. Does that make a difference in any way?
> I tend to agree with the author when the stock is not listed in the
> U.S. However it is a higher commission for the discount broker to
> purchase on the TSX.

Why You Should Own Gold and Silver Mining Stocks and Warrants

This is a good article apart from the oft-repeated claim that, by buying Canadian stocks, US investors benefit from CAD appreciation. No, and again no. It is irrelevant. Almost all major gold and silver mining stocks are dual-listed on the TSX and either the NYSE, NASDAQ, or AMEX. Their ratio of their share prices in Canada and the US track the USD/CAD ratio almost perfectly. If they didn't, arbitrage would start immediately because you can buy a dual-listed stock on one exchange and then immediately sell it on the other. It is therefore irrelevant whether you buy Yamana as AUY or YRI.TO. If USD/CAD falls, AUY will gain more in percentage terms than YRI.TO. But for tax purposes, all of your purchases and sales must be converted to USD, so it will make no difference.

If you want to bet on a drop in USD/CAD, buy FXC.