Gold stocks posts
FeedPosted Oct 20th 2009 7:40PM by Steven Halpern (RSS feed)
With gold and silver prices testing new highs, we turn to several leading resource experts -- Mary Anne and Pamela Aden, Mark Skousen and Larry Edelson -- for their favorite plays in the sector.
In The Aden Forecast, the Aden sisters explain, "Gold and silver recently moved well into record high territory, and it looks like they are poised to head even higher.
"Most impressive, gold's leading indicator still has room to rise further before it reaches the high area. This tells us that gold's current C rise is very strong and it's now likely headed to our next target level near $1200. Meanwhile, December gold will remain super strong above $1,020.
Continue reading Gold and silver favorites from resource experts
Posted Sep 13th 2009 1:00PM by Jamie Dlugosch (RSS feed)
Filed under: Stocks to Sell
In my perusal of gold stocks, only one -- Harmony Gold Mining Co. (NYSE: HMY) -- trades rationally, but that is not enough to justify holding the stock if you believe, as I do, that gold prices are likely to fall.
Even with gold at $1,000 per ounce, HMY trades for a modest 12 times trailing earnings and 15 times forward earnings. For this valuation to hold up, gold prices need to continue their ascent at a fairly significant clip. If gold is truly a hedge against the end of the world scenario and collapse of the dollar, investor expectations should be to protect capital. These gold mining stocks, including Harmony, trade like growth stocks.
Do you see my point?
Continue reading Gold stock to sell #5: Harmony Gold Mining Co. (HMY)
Posted Sep 13th 2009 9:00AM by Jamie Dlugosch (RSS feed)
Filed under: Yamana Gold (AUY), Stocks to Sell
One of the hottest gold stocks is Yamana Gold Inc. (NYSE: AUY).
With a share price that is affordable to the retail customer, smaller investors have been gobbling up shares in 2009.
But like AngloGold, the credit crisis knocked the wind out of the Yamana trade.
Shares actually were fairly valued when they bottomed below $5 per share. Now, with more than 100% recovery of that value, AUY trades above $10 per share. As a result, the valuation is way ahead of itself. Shares of AUY trade for more than 17 times trailing earnings and 18 times forward earnings. Gold prices would have to continue increasing by 15% to 20% per annum in order to justify these prices.
Continue reading Gold stock to sell #3: Yamana Gold (AUY)
Posted May 29th 2009 11:00AM by Steven Halpern (RSS feed)
Filed under: International markets, Newsletters, Mutual funds, ETF Investing, Commodities, Stocks to Buy, Recession
Mary Anne and Pamela Aden are among the advisory world's top authorities on metals and resources.
In a recent Q&A session, the editors of The Aden Forecast answer the most common questions that they are asked by readers as to the current state and future outlook for the precious metals markets.
In addition, the sisters answer what they say is the most frequent question they receive: "What is the best way to buy gold." Here, they offer a review of five strategies for investing in gold, including their top picks among stocks, closed-end funds and ETFs.
Continue reading How to invest in gold: Q&A with the Adens
Posted May 4th 2009 12:40PM by Steven Halpern (RSS feed)
Filed under: International markets, Newsletters, Canada, Commodities, Stocks to Buy
"As the name suggests, Royal Gold (NASDAQ: RGLD) is a royalty company, one of the larger and longest-established of such companies, with a focus on gold," says resource exprt Adrian Day.
In his Global Analyst advisory, he explains, "In my view, the stock offers a combination of growth, low risk, and high potential." Here's his look at this "golden opportunity."
"In the past year, the company has acquired two significant royalty packages, the first last year from Barrick and more recently from Teck Cominco. The Barrick package includes approximately 70 royalties.
"Even before these acquisitions, it had a solid long-term growth record, in royalties and in revenues. Its pipeline is solid, including a royalty on the large Pensasquito mine of Goldcorp; when that ramps up in 2012, it will add about 25% to Royal's revenues.
Continue reading Royal Gold (RGLD): Royal play on gold royalties
Posted Apr 18th 2009 3:30PM by Jamie Dlugosch (RSS feed)
Filed under: Commodities
One thing I am very afraid of with gold is manipulation.
Unlike paper currency that is impossible to manipulate in any way, gold can be accumulated by a group of connected buyers for the sole purpose of eliminating supply from the market. A successful cornering of the market can result in volatile swings in price. Unsuspecting buyers acquire bullion at higher prices only to see a flood of supply hit the market resulting in damaging price collapse.
Continue reading Reason No. 2 to avoid gold: Gold prices are easily manipulated
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