kkin365

How Cheap Are Gold Stocks Relative to Bullion?

A thought-provoking post. I read somewhere that in looking at gold stocks, one has to assess the extent to which its production had already been spoken for -- using your option analogy, the extent to which a company has covered calls. When so, any price appreciation above the call price belongs to the owern of this call option. This may explain why your synthetic value far exceeds the market value. Perhaps I am wrong.

Gold Stocks Get Price Hikes as Bullion Surges

Given that there are but few stocks focusing on gold, does GLD make sense? I read that since GLD's model is to buy the underlying metal as its stocks are sold, there is an intrinsic advantage on the upside (more buyers of the ETF, more buying of the metal, creating more demand for it) as well as on the downside, which could be more sudden and more dramatic. Any comments?

Going For Gold With Yamana

Cramer talks about AUY for quite a while. I have a long position -- and only recently has the stock been showing some promise.