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alsobirdman

alsobirdman
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  • Time To Pick Up This Premier Gold Miner At Multi-Year Lows [View article]
    Thanks, Bret.

    I already have some funds in GDX for LT and NUGT for ST plays. Seems like miners are a no-lose proposition long-term. At least I hope, LOL. I've been looking at individual miners recently and did pick up HL on your recomendation. Bought it @ 4.19, wish I'd waited a few weeks for the sub-4.

    Will look to pick up some ABX this week.
    May 6, 2012. 09:16 AM | Likes Like |Link to Comment
  • Don't Miss Gold's Mania Stage - We're Not There Yet [View article]
    Great question, Amine, and one that I sure wish someone had an answer for. Personally I'm not too concerned about the price of just bullion, since most of my gold dollars are in the miners beacuse I feel they will benefit most from the increased price of bullion and the (for now) low price of oil.

    I don't worry about the "gold is money", etc. arguments and I'm not a doom-and-gloomer. I'm just looking to make money from this current trend.

    I will be paying close attention to what I refer to as my "man on the street" index in order to decide when to start exiting my positions in the miners. As I see it, the price of bullion will precede the big move in the stocks. Sooner or later more retail investors and institutions will then realize the huge profits that established miners are making. There will also be rampant speculation in juniors and exploration stage miners.

    When I start hearing people in bars, work, etc. talking about getting into gold mining investments, I'll start thinking about moving out. I believe even tiny penny-stock mining companies will see huge increases as the "man on the street" gets gold fever.

    Back to the price of bullion, it sure will be interesting to see what does happen. I do believe that there will be a price point where people will be hesitant to hold physical. The threat of theft or loss IMO will put an upper limit on it. I spent a lot of time in the middle east of the last 20 years and I was always amazed at the amount of gold worn by people out walking on the street. At some point I think the fear of wearing, or storing in the home, will factor into the price.

    I may be completely wrong, but my gut feeling is this will occur in the $2500-3000 range. I'm predicting a gold:dow ratio of 3:1 sometime mid 2012.

    No matter what happens, these are exciting times and plenty of money will be made in the gold trade, both bullion and miners.
    Sep 4, 2011. 02:12 PM | 1 Like Like |Link to Comment
  • Don't Miss Gold's Mania Stage - We're Not There Yet [View article]
    Great article, Kevin. My first exposure to investing was buying VanEck's International Investors gold mining fund back in 1979. I tripled my money and was very happy. Of course back then it was only $800 I tripled but I was still very happy.

    I like to use what I call my "man in the street" index to determine when I should get out of something. Back in 1980, everybody was talking about buying gold. The same thing hasn't happened yet. It will. My wife went to a "gold bug" party recently when gold was $1400. The premise of these parties is for women to bring their unwanted gold jewelry and sell it. The hosting woman gets a small cut of the take. She did not sell anything, but plenty of women did. I told her that at some point they would be angry at themselves and they will want to buy some gold. When that happens, you will be right. Gold will go parabolic and so will mining shares. Everybody will want to get on the train. That will be the time to exit. My best guess is mid 2012, but I still think we'll never see $1000 gold again.
    Sep 1, 2011. 07:29 PM | 5 Likes Like |Link to Comment
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