Parties do not believe that Gold Stocks are going anywhere fast. No reasoning just that due to the current price of AU they have this tendency to bag any company that is involved with the precious metal.After the 1987 crash... sorry market correction Newmont increased 18% in value ... whilst all other stocks sort of tumbled - all except Gold Mutual funds which had a negative impact of around 1.87% drop.Even Microsoft had a 17% drop in value. This was the rule of thumb across the board. What stopped the Gold Mutual funds and Newmont dropping to such low levels as experienced across the board? Try value.All hi-tech shares and industrials are that far over-valued that we tend to forget the fundamentals when investing. The scarcity of shares has seen portfolio mutual funds lead a merry waltz down Wall St. The ever increasing price sees Mac and Mae scrambling to get some of the action. BUT at what cost!Remembering that Sons of Gwalia was established by an Ex Fed Treasurer (US) and he set the trend with forward sales at US $650 per ounce (long term). Hill50, Newmont, Anglo, Barrick all have followed the trend. These companies are not loosing money! The Banks are the loosers as they have to pay out!So where do you stick your investments. Ever thought of hedging your risk?
Folks you need to check out the mining board like suggested.Demiller is very wise on the subject.You can be assured that most arguments have be excercised both for & against on the board.Also the threads explain the gold carry trade + numerous other interesting cause's of the gold situation.If you don't have time to read the board then at least realise that Demiller is very well versed in the subject matter.Jon
Thanx Jono... I have tried to restrict my sarki comments yet the chkNYC is not impressed.. I just cant help myselF!Fool am I she is an attorney.... ;o)
Parties do not believe that Gold Stocks are going anywhere fast"Parties"? I get your pardon, but I wrote that I did not think that the gold stocks were going anywhere.I am not a Party. My name is Christina. While I buy gold coins - mostly for sentimental value -and own a bit of gold jewelry - just a bit-- I do not think that gold stocks are a good investment.But that is just IMHO.I hedge my risk by having a diversified portfolio and diversified investments. BTW, I think that the Pacific Basin is a good investment right now. I should also add that I thought your post on mergers was a welcome diversion. It gave me an opportunity to see what was going on. Thanks. More of the same, please. But, of course, only during the hours the market is closed.Hooroo.Christina
Demiller1:Just saw this post. Can't be sure if you were trying to be sarki or trying not to be sarki. But either way, you were right, I was not impressed. And why are you a fool because I am an attorney?BTW - still don't think gold stocks are the way to go.Christina
I am a fool in more ways than one. Trying to belt into some people sense and sensibility when it comes to investing is difficult, especially when 'they' think value is the fact the share price of a particular company has dropped 5% from its highs!Explaining what a systematic risk to the US public is another area! You see in Oz we know what a systematic risk is - every time america sneezes we get a cold!BTW just keep cashed up so that when there is a correction you can average out and the individual price per unit cost of your stocks will drop. Reduces those after crash blues!
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