tag:blogger.com,1999:blog-816559531110064247.post1449582035199735244..comments2024-03-08T01:03:44.522-08:00Comments on Humble Student of the Markets: An embarassing question for gold bugsCam Hui, CFAhttp://www.blogger.com/profile/09672203690656029787noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-816559531110064247.post-46652055571010875912009-12-15T21:13:35.748-08:002009-12-15T21:13:35.748-08:00Gold stocks in general may not have had leverage t...Gold stocks in general may not have had leverage to the gold price from peak to peak on a buy-and-hold basis because they follow a slightly different cycle than the metals themselves. Historically you will see that leverage does exist -- for example 1979-1982, 1994-1996, 2004-2006. These are the periods when it doesn't matter what gold stock you hold, they will almost all easily outperform the metal. Indeed, the more ridiculous or unbelievable the "story", the more a particular gold stock tends to fly (ultimate example: Bre-X). When gold stocks are not in the sweet spot, it very much matters which particular stocks you pick because there will be a few cats and plenty of dogs.Tomhttps://www.blogger.com/profile/09171960862975615346noreply@blogger.comtag:blogger.com,1999:blog-816559531110064247.post-20886499464828746032009-12-12T18:53:00.758-08:002009-12-12T18:53:00.758-08:00yep, a mere 300% rise off the lows is some serious...yep, a mere 300% rise off the lows is some serious underperformance!tooearlyhttps://www.blogger.com/profile/06513358663917044513noreply@blogger.comtag:blogger.com,1999:blog-816559531110064247.post-26088466112965023282009-12-11T06:42:21.114-08:002009-12-11T06:42:21.114-08:00I agree with Daniel, he makes a very good point. ...I agree with Daniel, he makes a very good point. And while we may never seen another opportunity like in Nov. 08, I still think there is a lot of upside left for gold mining stocks. I wouldn't necessarily be a strong buyer of them right now though, given their recent runup. I think we'll get a better opportunity to buy in the first half of 2010. And in terms of some specific gold miners, I'd like to draw your attention to several small and mid cap gold mining companies, all of whose stocks have done considerably better this year than the large caps because of the considerable leverage they offer to the gold price:<br /><br /><a href="http://www.goldalert.com/goldmining/sangold" rel="nofollow"> San Gold </a> (ticker SGR on the TSX Venture Exchange)<br /><br /><a href="http://www.goldalert.com/goldmining/auraminerals" rel="nofollow"> Aura Minerals </a> (ticker ORA on the TSX)<br /><br /><a href="http://www.goldalert.com/goldmining/clauderesources" rel="nofollow"> Claude Resources </a> (ticker CGR) <br /><br /><a href="http://www.goldalert.com/goldmining/goldenstarresources" rel="nofollow">Golden Star Resources </a> (ticker GSS)<br /><br /><a href="http://www.goldalert.com/goldmining/premiergold" rel="nofollow"> Premier Gold </a> (ticker PG on the TSX) <br /><br /><a href="http://www.goldalert.com/goldmining/fortunasilver" rel="nofollow"> Fortuna Silver </a> (ticker FVI on the TSX Ventures Exchange) ; this one is actually a silver mining company that I particularly like as well <br /><br />There is a lot of good news and analysis on these companies at <a href="http://www.goldalert.com/" rel="nofollow">http://www.goldalert.com/</a> too which provide details on the risks and potential rewards of each company, including projects in development, geographic and political risk, company history, description of company management and their personal experience, and a lot much.Unknownhttps://www.blogger.com/profile/13775653942561818932noreply@blogger.comtag:blogger.com,1999:blog-816559531110064247.post-15072716529529170522009-12-10T07:02:23.184-08:002009-12-10T07:02:23.184-08:00Here's the embarrassing answer: the financial ...Here's the embarrassing answer: the financial crisis pummeled the gold stocks along with others. Most everyone thought that gold would be killed too, so the gold stocks ended up selling at way below the values they should have. November 2008 saw the "buying opportunity of a lifetime" for gold shares.<br /><br />If you compare gold with the indices from the November 2008 lows to today, you'll see the leverage.Daniel M. Ryanhttps://www.blogger.com/profile/07756525227609911646noreply@blogger.com