Gold

  • 21 Nov
    Worried About The Current Financial Environment? Here’s What You Need To Know

    Worried About The Current Financial Environment? Here’s What You Need To Know

    • Today, we’ll discuss the sustainability of developed financial systems as they are now.
    • We’ll also take a look at the much talked about Chinese slowdown.
    • I’ll finish with a take on gold and what could happen.



    Introduction

    In today’s article, I’ll discuss the financial environment we are living in.

    It’s very important to see the fundamental trends and forces surrounding what looks like a stable and strong financial system. The fundamental forces are crucial because in the long term, those forces eventually prevail and have a huge impact on all financial assets. More →

  • 03 Nov
    This Stock Could See A Fivefold Increase In Price, But The Risks Are Huge

    This Stock Could See A Fivefold Increase In Price, But The Risks Are Huge

    Being a value growth investor, I’d recommend a stock that has a strong margin of safety—thus little chance of permanent capital loss—while also having huge upside coming from market recognized or unrecognized catalysts.

    There are some investments out there where the potential loss is total while the potential upside is extremely high. I wouldn’t call these investments, and only would recommend one as it’s more like a bet.

    To keep things interesting, today I want to share with you such a bet by discussing a non-linear stock with out of the box thinking management, McEwen Mining (NYSE: MUX). MUX will give you a clue as to how I research potential investments and analyze their risk reward ratios.



    McEwen Mining

    MUX is a producing, developing, and exploring gold/coper miner. Currently, it produces only gold, so the market puts it into the gold miners basket. Nevertheless, it has 3 producing mines in Ontario, Mexico, and Argentina, two gold mines in development, and various exploration targets. More →

  • 14 Sep
    We Could See Gold At $20,000. No, I’m Not Crazy.

    We Could See Gold At $20,000. No, I’m Not Crazy.

    • It might sound crazy, but gold at $20,000 is a highly probable scenario.
    • However, gold at $600 is also a probable scenario in the short term.
    • I’ll discuss how to position your portfolio to take advantage of scenario 1 and not lose much in scenario 2.

    Introduction

    I’ve already written about how gold should be an essential, but small part of each portfolio. My theory is that by putting a few percentages of your portfolio into gold miners, you hedge yourself against anything that might happen while you don’t risk much as all you can lose are those few percentage points. More →

  • 08 Sep
    Why You Should Be Paying Attention To Bond Yields

    Why You Should Be Paying Attention To Bond Yields

    • It’s extremely important to watch bond yields as they define the health of the economy and financial markets.
    • I was correct last year when I said to short bonds, but now things are changing and shorting bonds is no longer a low risk thing to do.
    • I’ll discuss what to look for to protect your portfolio from what bond yields are saying.

    Introduction

    Last year, I was a bond bear and wrote about how investors should avoid bonds, especially as the FED was announcing a tightening policy. I was right on with my forecasts as bond yields have almost doubled since June 2016 which lowered bond values. More →

  • 24 Aug
    Gold Miners Vs. Gold Steaming Companies – There’s A Clear Winner When It Comes To The Better Investment Now

    Gold Miners Vs. Gold Steaming Companies – There’s A Clear Winner When It Comes To The Better Investment Now

    • I’ll compare current operating assets, future potential assets, valuations, costs, and cash flows for Barrick Gold and gold streaming company Franco Nevada.
    • Gold royalty companies have a lean business model and the appeal of constant positive cash flows, no matter the price of gold, is on their side.
    • Gold miners have a history that’s better to forget after terrible investments were made in 2012 when gold prices were high, but are you investing in the past or for the future?

    Introduction

    Two days ago, I described gold royalty, or streaming, companies and how they have outperformed gold and gold miners in the past.

    Today, I want to compare the largest gold royalty company, Franco Nevada Corporation (NYSE: FNV), with the largest gold miner, Barrick Gold Corporation (NYSE: ABX), to determine which is a better investment at this point in time, a gold miner or a gold royalty company. More →

  • 23 Aug
    The Practical Approach To Constructing An All-Weather Portfolio

    The Practical Approach To Constructing An All-Weather Portfolio

    • Creating an all-weather portfolio is pretty technical. Today, I’ll try to make it as practical as possible and give actual investment examples of where to invest.
    • It’s all about risk. Counter to general knowledge, bonds carry large risks at the moment.
    • I’ll describe 4 different investments that will behave differently in 4 different economic scenarios, but all of them offer a yield all the time.

    Introduction

    Two months ago, I wrote a pretty detailed technical article on how to build an all-weather portfolio. The results were quite discouraging as a huge part of the portfolio would have ended up in short term bonds, especially treasuries.

    In today’s article, I want to deviate a bit from the pure technical side and approach the creation of an all-weather portfolio from a practical side that includes actual stocks to buy and doesn’t put as much in treasuries. More →

  • 22 Aug
    Gold Royalty Companies – Reap The Reward Without All The Risk

    Gold Royalty Companies – Reap The Reward Without All The Risk

    • Gold streaming companies carry much less risk than a miner thanks to lower costs and better diversification.
    • However, these companies are still exposed to exploration upside and benefit from higher commodity prices.
    • Most of them even pay a dividend.

    Introduction

    Central banks will continue to print money even if it looks like they are taking a breath now. Therefore, gold investing still remains an important hedge for every portfolio. A hedge that is even cheap if gold prices are at a subdued level. More →

  • 03 Aug
    This Is What To Watch For When Thinking About Investing In Junior Gold Miners

    This Is What To Watch For When Thinking About Investing In Junior Gold Miners

    • There are many risks—ranging from political risks to meteorological—to keep in mind with junior gold miners. I’ll describe some of them to give you a better picture of what can happen.
    • However, the negative attitude towards junior miners also provides excellent investing opportunities.
    • We’ll look at what makes the stock price of a gold miner move and how to recognize the pattern.

    Introduction

    The VanEck Vectors Junior Gold Miners UCITS ETF (NYSEARCA: GDXJ) has gone through some significant restructuring in the last few months because it was getting too big. The ETF simply had too much in the way of funds to continue buying stocks of junior gold miners (market capitalization below $2 billion), and had to increase the threshold by including gold miners that have a higher market cap. More →

  • 12 Jun
    Stocks, Bonds, & Gold, Oh My! What’s The Safest Asset Class Today?

    Stocks, Bonds, & Gold, Oh My! What’s The Safest Asset Class Today?

    • In his search for safety, the average investor usually does it all wrong.
    • Stocks, bonds, real estate, gold, and cash will all probably drop more than 70% once in your lifetime.
    • However, there is an asset class that is much safer and will lead to huge returns, Buffett would call it a “bet on America.”

    Introduction

    When I talk to people that aren’t as obsessed about investments as I am, a word that I constantly hear is “safety.” Everybody wants to do something with their capital without risk and they are in a constant inner fight related to their money and what to do with it. More →

  • 31 May
    An Analysis Of The Top 10 Gold Miners

    An Analysis Of The Top 10 Gold Miners

    • Each gold miner is different, so you have to carefully pick the right one for your portfolio.
    • Debt levels, gold reserves, mining costs, political and environmental risks, all have to be put into a perspective related to your risk appetite, strategy, and investment horizon.

    Introduction

    Yesterday, we discussed the reasons it’s a good idea to have gold miners in your portfolio now. The goal of today’s article is to show you just how different gold miners are and how carefully you have to chose those to include in your portfolio.

    Just as every mine is different, each miner is even more different. There are huge differences in potential future output, mining costs, debt structures, political risks, etc. All of these factors have to be assessed to provide you with the best hedging option for your portfolio according to your risk appetite and portfolio orientation.

    In this article, I’ll discuss the top 10 holdings of the iShares MSCI Global Gold Miners ETF (NYSEARCA: RING) to give you insights into what to watch for and how that affects the risks and potential rewards for your portfolio. More →

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