gerold

Gold Stocks: Five Points to Remember

Au contrair. This is insight in addition to investment advice. Icing on the cake, as it were ...

Sascha Opel on Gold: 'The Ultimate Currency'

Well said, Sascha. I live in Thunder Bay and your report of Premier, in my back yard, is spot on. I am also keeping an eye on Roxmark (RMK-TSXV) in the Geraldton area.

Why Gold Juniors Have Not Yet Popped

I agree with Howard Sun as well as some of the comments. However, I wouldn't hold my breath waiting for juniors to "pop" any time soon. The price of both gold and silver have been manipulated and artificially suppressed by various arms of the government for decades - the Fed, Treasury, PPT, SEC, COMEX, etc. because gold and silver are seen by the public as a barometer of fiat currency and the government needs to maintain confidence ("con job") in paper dollars that are becoming increasingly worthless.
As a result, the cost of mining has outpaced the increase in metals prices and therefore kept a lid on the major producer's share prices which directly affects the valuation of mid-tier and juniors.
Many "gold bugs" feel this can't keep up forever yet it's been going on for decades; they feel that the government's stooge bullion bank's margin calls will wipe them out but they don't understand that they aren't getting margin calls because the SEC, COMEX and CFTS are complicit in this manipulation. Bernake has said and has shown through the Fed's actions that the govenment will do everything it can to keep the lid on.
So what's an investor to do? Personally, I keep trading some juniors (both mining and exploration) because they are in my comfort zone having grown up in a northern Canadian mining town and worked in several mines. I keep trading costs low with an online brokerage. I subscribe to several newsletters (there's a lot of garbage out there but I highly recommend Doug Casey's "International Speculator" as well as Lawrence Roulston's "Resource Opportunities.") I'm able to trade on the Toronto Venture stock exchange which I believe is difficult to do from the U.S. without going through a high-priced broker. I watch my stocks daily as well as a watchlist of promising stocks. However, to make any money I have to be very nimble trading in and out and cutting losses.
For instance, I sold Serengeti (SIR) after it climbed 138% in one day recently on heavy volume which indicates fund(s) buying and I'm waiting for it to bottom out before buying back in (it has long term promise.) I know from experience as soon as it gets 10% to 20% above it's high the fund will sell large volumes sending the price down again (funds are dumb.) I realize that not everyone is able or willing to spend the kind of time that I do. However, if making a bit of money were easy everyone would be doing it. Increasing financial turmoil will increase volatility and make for greater trading opportunities but if all you're going to do is buy and hold you may have to hold for a long time and you better be prepared for a rollercoaster ride.
I stay in the game hoping, like everyone else, that the gold sector will take off ("Hope is not a plan") but I'm not holding my breath.

10 Reasons Why Gold Has Further to Run

Thank you marxbites, for an eye-opening prespective. I never realized that Britains's loss of gold was the reason the Fed's increased paper lowered interest rates and triggered the speculative and, ultimately unmanageable, stock boom that crashed in '29 and dragged the banking system and the economy down with it.