Yes, and the last time gold stocks were this low compared to gold was at the end of 2008. Over the following year as gold rebounded, gold stocks doubled.
Gold
- Thread starter redwing
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Yes, and the last time gold stocks were this low compared to gold was at the end of 2008. Over the following year as gold rebounded, gold stocks doubled.
I hope you are right Toe. It has been a hard year or so.
I hope so to Sunfish, I've been stocking up.
Depends which gold stock. I remember Apex minerals was really low and fell even further when gold was going gang-busters.
Today was an interesting one for the gold stocks on ASX.
Many of the blue chip ASX300 gold companies rallied, e.g. from my super account:
IGR +6.5%, PRU +7.7%, SLR +7.5%, KCN +3.8%, TRY +3.9%
However many of the juniors on my watch list fell with the rest of the market:
AQQ -6.7%, ARD -5.3%, CJO -9.2%, MCO -8.6%, MSR -5%
So market is still wary of the higher risk gold stocks at the moment, suspect this trend might continue perhaps until the Greece elections June 17th.
Many of the blue chip ASX300 gold companies rallied, e.g. from my super account:
IGR +6.5%, PRU +7.7%, SLR +7.5%, KCN +3.8%, TRY +3.9%
However many of the juniors on my watch list fell with the rest of the market:
AQQ -6.7%, ARD -5.3%, CJO -9.2%, MCO -8.6%, MSR -5%
So market is still wary of the higher risk gold stocks at the moment, suspect this trend might continue perhaps until the Greece elections June 17th.
Hobo, Those miners generating real cash flow with years of reserves are so cheap there is no reason to get involved with explorers. [We have been there in the past] In this climate I would draw a thick black line through any emerging miner without enough cash to carry them through to production. I reckon I'd wait 3 months after first gold pour to see if the process works even. Risk is off.
Hobo, you know gold.
If you had to narrow it down to 2-3, which of these blue chip ASX300 gold companies you mention would be good to stick some cash into?
I don't want to be seen as giving financial advice Mr Ploppy
The 5 I listed are the only bluechips I currently hold, but as Sunfish points out, there are many oversold miners with good cash flow and large reserves (and not just on the ASX). Here is a list of other blue chip gold shares in the ASX300:
http://www.bullionbaron.com/2012/03/precious-metal-stocks-for-your-super.html
And maybe also keep a eye on TLS even that ASX listed company fully franked is just below 11%,and the problem i know from experience with high risk exposure to starp-ups is many go out of business,only looks good on the tax return,,.
Haha nice poem.Don't know about the light to hold bit
Some of the big gold mining companies in Australia are overseas based i.e. Newmont & Barrick
Whilst we look at options, is the Australian ETF - ASX Code: GOLD worth a look?
ASX: GOLD & PMGOLD both track the AUD price of Gold (would lean toward PMGOLD as the safer option as it's a Perth Mint product as opposed to GOLD which uses HSBC as their custodian for the physical). Or there is QAU which is an ETF that tracks the US price of Gold (AUD exposure hedged).
I wondered how you would reply.I don't want to be seen as giving financial advice Mr Ploppy
There is really little else you could say.Miners are hard to love and here I'll mention a few but what I point out it is a wide spread problem: They prefer to waste thier cash flow than return it to share holders. BHP over paid for it's shale gas assets in the US last year and wasted a wad of cash on the fail takeover of the Canadian phosphate miner, RIO likewise for it's aluminum assets years ago and NCM defied logic buying the Lihir gold mine which is, and always has been, a dog with fleas.
How much nicer to pay dividends and leave it up to the share holder to decide what to do next? They need some non-geologists on their boards.
It's odd, but Oz doesn't have a lot of good miners listed and if you are going to be active in that market you need to trade the NYSE or TSX. Exxon has a PE of < 10, WPL 14, but was higher recently. These things matter. With it's CNG trains coming on line with fixed price contracts, they now have the character of a utility which doesn't pay dividends as a utility should. I don't call it a "buy".
Disclaimer: You would be silly to take investment advice from a fish. These are merely musings.
They did alright by me when they took over Lihir. They gave me some of their shares @ 40 odd dollars which I promptly sold and a nice cheque to boot.
IIRC they bought Lihir because they were in danger of becoming a Gold miner that made most of it's money from Copper mining.
I think they have to be growth stocks rather than income stocks don't they? Otherwise there would be nothing left when their existing resources run out.
Is gold a great or ordinary investment?
From 1931 to 1971 gold didn't move and then it picked up its pace and dropped back in the 80's
From 1802 to 2005 a dollar invested in the U.S. stock market supposedly grew to $10.3 million, including dividends and over the same time period a dollar invested in Gold grew to $27. 00
Its had a great run recently, but is it a great or ordinary investment for our funds?
From 1931 to 1971 gold didn't move and then it picked up its pace and dropped back in the 80's
From 1802 to 2005 a dollar invested in the U.S. stock market supposedly grew to $10.3 million, including dividends and over the same time period a dollar invested in Gold grew to $27. 00
Its had a great run recently, but is it a great or ordinary investment for our funds?
Gold is a cyclical asset worth holding during times of financial crisis and/or fiscal irresponsibility by central banks/governments. I wouldn't advocate it as a buy and hold over the long term.
http://www.bullionbaron.com/2012/06/aud-gold-price-exceeds-weekly-aussie.html
P.S. How many companies listed on the US stock exchange in 1802 are still trading today? The reality is $1 invested in stocks in 1802 is probably worth nothing today because the company/s you bought went insolvent at some point over the last 200 years.
Gold was around $20 an ounce in 1802, so $1 bought 1/20oz or around $80 worth today, not $27.
1. Buy the index not individual stocks
2. Buy some Gold for some *zing* in your portfolio
See Harry Browne's Permanent Portfolio theory...not as a rule per se , just an interesting read
You would have to ask yourself with all the worldwide downtrends and every different element some orchestrated and designed to produce a marketing result in $$$$ terms,why is Gold not above the 2k US mark anyone holding Gold-liquid or in equities i would like to see the after-tax position in 13 months..imho..
I don't see the gold play as being about down-trends or price/asset deflation. It's only about deflation so long as the policy response could bring inflation. So far money printing has not brought noticable price inflation because money velocity is still falling, people are too scared to spend.
But once the world's problems are 'fixed' & the economt sputters back to life the real problem begins. Increasing money velocity combined with loads of cheap cash will but big pressure on CPI & interest rates. The U.S. gov borrows $0.42 in every $1 that it spends, how would it cope if rates went to 4%, or 10% or worse?
To me the gold play is about the threat to the very existence of the worlds fiat currencies & gold will not be fully priced unless people refused to hold U.S. dollars. Right now people cant get enough USD debt, even though the Fed tries to push them away with interest rates below inflation.
There was 515 tons of "paper" gold sold in 4 hours the middle of last week. It was simply dumped on the market. The "price" of gold is fluid and can be manipulated, the "value" of gold equals One and is a constant.
I have a lot of skin [and lost a lot of it] in the market for the miners so must wait and hope to be proven right in the end.
I am trying to build up courage to go very long the GOLD ETF tomorrow. The ETFs should only be a short term trading vehicle, not a long term one.
I have a lot of skin [and lost a lot of it] in the market for the miners so must wait and hope to be proven right in the end.
I am trying to build up courage to go very long the GOLD ETF tomorrow. The ETFs should only be a short term trading vehicle, not a long term one.
