Gold Miners

  • 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 →