While we haven't hit the place where gold is in danger of being in a bubble, there are an increasing number of institutional, and to a smaller degree, individual investors, putting a portion of their assets into gold.
Marc Faber has been calling gold for a long time before investors saw the possibilities gold offered because of trending government and Federal Reserve policies.
As with commodity investors Jim Rogers and Peter Schiff, Faber sees gold as one of the ultimate defenses against out-of-control government inflating and debt. What is being called quantitative easing today.
Faber hasn't encouraged investors to buy up more gold as a result of the obvious stimulus packages set in play, but has been seeing this happening since the early 2000s.
In one of his books named 'Tomorrow's Gold,' published in the latter part of 2002, Faber told investors they needed to put some of their assets in gold at that time. It was lower than $350 an ounce then.
In the early part of 2001 he called gold mining stocks cheap as well, which has also played out to be true for a large number of them.
All of this is in response to the macroeconomic changes about to hit the U.S. and Faber understood the signs of, and consequences of those actions, the reason he was so clearly right, and continues to be in regards to investing in gold.
Faber has also recently stated that gold prices are still relatively cheap, and quantitative easing will continue as the government is completely out of control and won't stop.
He recommends for people to become their own central bank and hold their own gold, as the Federal Reserve will continue to print money, as will many other central banks around the world.
While gold will build the wealth of those investing in it, Faber also sees it as financial self-defense against the misguided practices of the Fed and others endlessly printing money.
Faber advocates investors to allocate resources to gold on a monthly basis.
Showing posts with label Gold Mining Stocks. Show all posts
Showing posts with label Gold Mining Stocks. Show all posts
Friday, October 15, 2010
Wednesday, September 1, 2010
John Paulson's NovaGold (NYSE:NG) Stake at 9.1 Percent
John Paulson now owns 20,181,818 shares of NovaGold Resources Inc. (NYSE:NG), according to a 13D filing he just filed.
Total cost for the shares was listed at $113,003,059, which equals about $5.59 a share. That represents a 9.1 percent stake in the gold miner.
This isn't an increase in the number of shares, as it is the same as the holdings in the last two quarters, back to the period ending March 31, 2010.
Primarily a gold mining company, NovaGold also produces ancillary metals like silver, copper and zinc.
NovaGold's mining assets are located in North America.
Total cost for the shares was listed at $113,003,059, which equals about $5.59 a share. That represents a 9.1 percent stake in the gold miner.
This isn't an increase in the number of shares, as it is the same as the holdings in the last two quarters, back to the period ending March 31, 2010.
Primarily a gold mining company, NovaGold also produces ancillary metals like silver, copper and zinc.
NovaGold's mining assets are located in North America.
Friday, August 13, 2010
Barrick (NYSE:ABX), Newmont (NYSE:NEM) and Goldcorp (NYSE:GG) to Become Next Freeport-McMoRan (NYSE:FCX)?
It's instructive to watch the major gold miners like Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM), Goldcorp (NYSE:GG) and Kinross (NYSE:KGC) make acquisitions, as it tells a story of where the current gold mining industry is going, at least with the larger companies.
One thing to consider is because the gold price is high and economic conditions ripe for it to continue to rise, we hear the focus of the miners primarily on gold.
But in the background they've been quietly buying up properties, while which including gold, also have a lot of secondary metals included with the acquisitions.
The gold miners will continue to rise in share price, but the question in the back of a lot of investors' minds over the long term is what happens after the prices end their run.
Answers to that question are obvious, and the gold mining companies are starting to act more like a company like Freeport-McMoRan (NYSE:FCX) than pure gold miners, even though they're positioning themselves primarily as gold companies in the current economic environment.
Interestingly, Freeport gets a lower valuation than Barrick Gold, and is just ahead of Newmont and Goldcorp in market value.
That shows the premium being placed on gold at this time by investors, and that will remain that way until the gold bull market runs it course, which could easily be several years into the future, or more, depending on the actions of central banks and governments around the world; especially the Federal Reserve in the U.S.
An amazing part of this is the major gold miners, by investing in a diverse amount of metals, will become better companies, but could lose market value because they won't be considered pure gold miners any longer.
This probably won't happen anytime soon, but once the bull market is over, we'll probably see the miners named above, and others, position themselves as base metals companies, or if a particular metal or metals are hot at that time, as whatever that metal may be ... such as copper, etc.
We'll probably see a much stronger metals market at that time, and increased and more robust competition as the demand for metals soars as emerging market middle classes increase their expendable income.
One thing to consider is because the gold price is high and economic conditions ripe for it to continue to rise, we hear the focus of the miners primarily on gold.
But in the background they've been quietly buying up properties, while which including gold, also have a lot of secondary metals included with the acquisitions.
The gold miners will continue to rise in share price, but the question in the back of a lot of investors' minds over the long term is what happens after the prices end their run.
Answers to that question are obvious, and the gold mining companies are starting to act more like a company like Freeport-McMoRan (NYSE:FCX) than pure gold miners, even though they're positioning themselves primarily as gold companies in the current economic environment.
Interestingly, Freeport gets a lower valuation than Barrick Gold, and is just ahead of Newmont and Goldcorp in market value.
That shows the premium being placed on gold at this time by investors, and that will remain that way until the gold bull market runs it course, which could easily be several years into the future, or more, depending on the actions of central banks and governments around the world; especially the Federal Reserve in the U.S.
An amazing part of this is the major gold miners, by investing in a diverse amount of metals, will become better companies, but could lose market value because they won't be considered pure gold miners any longer.
This probably won't happen anytime soon, but once the bull market is over, we'll probably see the miners named above, and others, position themselves as base metals companies, or if a particular metal or metals are hot at that time, as whatever that metal may be ... such as copper, etc.
We'll probably see a much stronger metals market at that time, and increased and more robust competition as the demand for metals soars as emerging market middle classes increase their expendable income.
Monday, June 7, 2010
Falling Commodity Prices Suggest Ongoing Recession
The ongoing drop in commodity prices implies the recession continues on, as the decline in prices tell us demand has plummeted.
I say an ongoing recession because I've never believed we've left the recession, but only the government stimulus plans and unprecedented printing of money has kept it from being exposed for what it is.
But whether you want to call it a double-dip recession, , u-shaped recession, or something else, the fact is we're set to face more economic difficulty, and after spending trillions around the world, it has done nothing to stop the recession we've been in for several years, and now has been made worse because of the government spending that has hidden and masked the reality.
There is only one reason commodity prices will drop, and that's based on supply and demand. In this case it's all about demand, which has simply dried up.
That drying up comes from the emerging narrative of slowing demand in China, the European Union, and the United States.
The frantic attempts to spin the situation by the U.S. governments and other governments around the world are no longer believable, and we need to be ready as it hits the fan again.
If spending trillions has ended with nothing, we can be sure spending trillions more will do nothing as well, other than continue to decimate people and their spending power.
Consequently gold prices will continue to rise, as well as quality gold mining stocks, as it becomes the only place of safety that can be counted on going forward.
I say an ongoing recession because I've never believed we've left the recession, but only the government stimulus plans and unprecedented printing of money has kept it from being exposed for what it is.
But whether you want to call it a double-dip recession, , u-shaped recession, or something else, the fact is we're set to face more economic difficulty, and after spending trillions around the world, it has done nothing to stop the recession we've been in for several years, and now has been made worse because of the government spending that has hidden and masked the reality.
There is only one reason commodity prices will drop, and that's based on supply and demand. In this case it's all about demand, which has simply dried up.
That drying up comes from the emerging narrative of slowing demand in China, the European Union, and the United States.
The frantic attempts to spin the situation by the U.S. governments and other governments around the world are no longer believable, and we need to be ready as it hits the fan again.
If spending trillions has ended with nothing, we can be sure spending trillions more will do nothing as well, other than continue to decimate people and their spending power.
Consequently gold prices will continue to rise, as well as quality gold mining stocks, as it becomes the only place of safety that can be counted on going forward.
Wednesday, May 19, 2010
Eldorado Gold (NYSE:EGO), Iamgold (NYSE:IAG), Yamana Gold (NYSE:AUY), Plummet with Gold Price
Recently the gold mining stocks have moved closely in unison with the price of gold, and as the gold prices go, so go the mining stock (at least most of them), and that happened today with Eldorado Gold (NYSE:EGO), Iamgold (NYSE:IAG) (TSE:IMG) and Yamana Gold (NYSE:AUY) (TSE:YRI).
Measured by percentages, dropping the most of these three gold mining companies was Iamgold, which plunged by 5.42 percent, or 42 cents. In New York they ended the session as $17.83 a share, and in Toronto they finished at $17.10 a share.
Volume was up on both exchanges for Iamgold as well, led by New York, where the company had a volume of 7,267,069, well above the 3-month average of 4,223,170. Toronto trading volume was also up above the 3-month average, but pretty much in line with normal activity, increasing to 3,481,476, while the regular average is 2,630,170.
Eldorado Gold was down 3.67 percent, or 63 cents a share. It finished the day at $16.52.
Volume surged for the miner, like it did with most gold mining companies, increasing from their 3-month average of 5,150,160, to 9,533,986.
Yamana Gold performed close to Eldorado for the day, falling by 3.65 percent, or 42 cents a share in Toronto, and 4.57 percent, or 51 cents a share in New York.
Volume in New York increased from 12,925,200 for a 3-month average, to 19,927,147. In Toronto, volume for the last three months on average was 4,469,540, compared with today's volume of 7,316,653.
The stock closed in New York at $10.66, and in Toronto at $11.10.
Measured by percentages, dropping the most of these three gold mining companies was Iamgold, which plunged by 5.42 percent, or 42 cents. In New York they ended the session as $17.83 a share, and in Toronto they finished at $17.10 a share.
Volume was up on both exchanges for Iamgold as well, led by New York, where the company had a volume of 7,267,069, well above the 3-month average of 4,223,170. Toronto trading volume was also up above the 3-month average, but pretty much in line with normal activity, increasing to 3,481,476, while the regular average is 2,630,170.
Eldorado Gold was down 3.67 percent, or 63 cents a share. It finished the day at $16.52.
Volume surged for the miner, like it did with most gold mining companies, increasing from their 3-month average of 5,150,160, to 9,533,986.
Yamana Gold performed close to Eldorado for the day, falling by 3.65 percent, or 42 cents a share in Toronto, and 4.57 percent, or 51 cents a share in New York.
Volume in New York increased from 12,925,200 for a 3-month average, to 19,927,147. In Toronto, volume for the last three months on average was 4,469,540, compared with today's volume of 7,316,653.
The stock closed in New York at $10.66, and in Toronto at $11.10.
Wednesday, May 12, 2010
Silver Getting Some Respect
Silver has been performing somewhat like gold mining stocks over the last year or so, as expectations of breaking out were always sitting there, but it wasn't able to break through.
Now that gold has surged beyond resistance points, there are no short-term barriers in its way to stop it from rising at a steady pace.
Silver, along with gold mining companies, has now broken out with gold in its latest move, and could break the $20 an ounce mark sometime soon, and from there will probably find support and start to rise much higher as a result, with some thinking in the months ahead it could break the $25 an ounce barrier.
Once gold shattered all-time records yesterday and today, gold mining companies started responding in similar ways, especially junior and mid-size companies, which had been sitting still for quite some time waiting for the right moment, and that moment is now, as investors pour money into the sector.
For silver, if it starts to act in unison with gold, and investor continue to look for a safe place to put their money, silver could start a huge bull run where it's anybody's guess where it'll end up. We're in for some interesting times ahead, and gold, silver, and gold mining stocks should do very well over the next year, and while ultimately correcting, there is nothing in the near or mid-term future which indicates it will interfere in this process, even if interest rates are raised by the Federal Reserve, which may be for the most part ignored in the light of these extraordinary economic times we live in.
Now that gold has surged beyond resistance points, there are no short-term barriers in its way to stop it from rising at a steady pace.
Silver, along with gold mining companies, has now broken out with gold in its latest move, and could break the $20 an ounce mark sometime soon, and from there will probably find support and start to rise much higher as a result, with some thinking in the months ahead it could break the $25 an ounce barrier.
Once gold shattered all-time records yesterday and today, gold mining companies started responding in similar ways, especially junior and mid-size companies, which had been sitting still for quite some time waiting for the right moment, and that moment is now, as investors pour money into the sector.
For silver, if it starts to act in unison with gold, and investor continue to look for a safe place to put their money, silver could start a huge bull run where it's anybody's guess where it'll end up. We're in for some interesting times ahead, and gold, silver, and gold mining stocks should do very well over the next year, and while ultimately correcting, there is nothing in the near or mid-term future which indicates it will interfere in this process, even if interest rates are raised by the Federal Reserve, which may be for the most part ignored in the light of these extraordinary economic times we live in.
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