petersl

Gold Stocks vs. Gold: Who's Winning?

Excellent article. I now can divine the metrics behind my decision to own AEM, KGC and IAG as major players in my portfolio. I sold off all GLD, SLV and CEF just prior to reading this article and added more IAG.

One Way Not to Play This Market: Gold

I'm not sure that Barrick has eliminated all of his hedge positions as of yet. If not, then gold will find support going forward, not only because additional hedges will be eliminated, but also because the world's biggest gold producer has switched from a hedger to being fully exposed to the POG, which means that Barrick has analyzed the price trends at the present time and believes that hedging is a fool's errand in this market.

Four Keys to Gold’s Next Move

Both silver and gold are valid ways to invest in what is going to happen to the dollar. The DXY broke support at 77.5 and is now in the 76 range, and probably heading lower. The chances of a geopolitical event of negative import, is growing more likely as the international community struggles to deal with Iran and its enabler, Putin's Russia. China is the 800 pound gorilla in the room as far as diversification out of dollar denominated assets are concerned, India is still the most significant gold market at present, but rapidly being overtaken by the inheritors of the Middle Kingdom. The only thing that could reverse the trend would be a massive reversal of the "quantitative easing" that the Keynesians are indulging in at present in Washington D.C., ably assisted by various Goldman Sachs alumni in New York and elsewhere. Rearranging the deck chairs on the Titanic is an old homily that comes to mind. Judicious and strategic purchases of good gold and silver mining companies, accompanied with hedging strategies (selling covered calls for instance on rallies) appears to me to be a prudent investment technique.

Barrick's Buy-Back Comes at a Bad Time

Yes, time will definitely tell. A monumental struggle between the bears and bulls on the price of gold is taking place right now over the battleground around $1000 per oz. I see Barrick's move as the correct one, albeit a little tardy in the execution. We should see a resolution of the struggle in the next couple of weeks, probably by the end of this month, which is historically a good one for precious metals. Don't forget to watch silver, and BTW, buried in the news coverage of Barrick's elimination of its hedge position (over time), was the news that Barrick also sold 25% of its silver production to Silver Wheaton from Pascua Lama's forthcoming production stream, getting a cash infusion in return for selling silver at $3.98 per oz to SLW under the agreement. This is a "win win" for both ABS and SLW.