Gold Miners

  • 24 Nov
    These 3 Tips Will Help You Survive The Next Market Crash

    These 3 Tips Will Help You Survive The Next Market Crash

    • We’ll discuss what a good defensive stock would be for the next market crash.
    • We’ll discuss Treasury inflation protected securities (TIPS).
    • We’ll discuss how gold miners can protect your portfolio.



    Introduction

    Yesterday, I discussed how a stock market crash can happen anytime. However, most of the triggers that I mentioned would have had the same credibility in 2012. Therefore, getting out of the market now might not be the smartest idea.

    It’s important to remember that time in the market and dividends are the main contributors to long term wealth creation. 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 →

  • 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 →

  • 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 →

  • 30 Jun
    These Correlations Might Make You Reconsider Your Portfolio Exposure To Gold

    These Correlations Might Make You Reconsider Your Portfolio Exposure To Gold

    • Central banks are slowly introducing the markets to higher interest rates, but this is just due to inflation and thus the effect on gold will be positive.
    • Since 1971, the trend for gold, monetary policy, and government debt burdens is clear.
    • Portfolio exposure to gold of 7.5% should be seriously considered.

    Introduction

    Gold prices are difficult to forecast as anything can happen, but as I have already written about how gold should be a part of every portfolio because it is a perfect hedge for economic and monetary turmoil, I’ve decided to write about the current position of gold in relation to economic forces in order to better determine how much of a portfolio should be exposed to gold. You can find my reasoning behind owning gold miners in my article available here. 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 →

  • 30 May
    Why You Want Gold Miners In Your Portfolio Now

    Why You Want Gold Miners In Your Portfolio Now

    • Investing 5% of your portfolio in gold miners offers you the potential for a twenty-fold upside while the downside is just the invested 5%.
    • A macroeconomic analysis shows that there is a high chance that the FED won’t be able to significantly increase interest rates or trim its balance sheet.
    • More quantitative easing—similar to what is still going on in Europe and Japan—would easily bring gold above $2,000 per ounce. In that case, I wouldn’t exclude 1,000% jumps for miners.

    Introduction

    Lately I’ve been mentioning in a few articles how gold, especially gold miners, are a good hedge for a portfolio. My idea is that if you own gold miners with 5% of your portfolio, you are relatively well protected against whatever surprises we might see coming from the economy. More →