For the first time in several months, I am 100% bullish on gold. I currently hold long positions in both junior and senior mining companies, including U.S. Gold (Amex:UXG) Golden Star Resources (Amex:GSS), IamGold (NYSE:IAG), Gold Fields (NYSE:GFI) and AngloGold Ashanti (NYSE:AU).
I’d like to add exposure on the junior end of the spectrum, but to be perfectly honest I have not kept up with my research in this sector. So I hope to tap the collective analysis and foresight of you, my brilliant readers. Please leave a comment indicating your #1 choice for a junior mining co. investment at today’s prices, and the key factors to consider. Persuade me, and I’ll throw real money at it (after my own due diligence of course). I hope to recap the best suggestions in a post this weekend or early next week.
Can you explain why you are 100% bullish on gold at this point? I am long-term bullish on gold and hold a core position of gold & silver bullion but I have to admit that the charts look rather weak right now and all this talk of rising interest rates might not help gold in the short run.
@Chris: I hear what you are saying, and the past few days fed speak has focused on the inflation threat and hinted at rising rates. So gold should be reined in, right? Your analysis makes sense, but yesterday afternoon, following Trichet’s comments, commodities took off like a bat out of hell. Unless they retreat quickly, and I mean in the next few days, I think gold is likely to rock. The other clue? Silver (often a leader) did not share gold’s weakness early this week. Now the market may prove me wrong as early as today, in which case I’ll flip flop without shame, but that’s what I see right now.
Here’s my 2 cents. With the credit situation, junior miners experience problems with financing. That provides a great opportunity for experienced old timers to come in, provide funds and technical advices in exchange for warrants and percentage on future profits.
If you are curious about merchant banking with miners, I recommend you read this corporate presentation : http://www.aberdeeninternational.ca/
*Not a recommendation.
There was a good article in the Globe & Mail about juniors and their financing problems.
There is an opportunity in the juniors for sure. They have been annihilated in the past months.
“As lenders balk, big miners step up
ANDY HOFFMAN
From Wednesday’s Globe and Mail
Terrane Metals Corp. head Rob Pease knows exactly what would happen if his junior mining company asked to borrow $40-million (U.S.) from a major Canadian bank.”It would be a very short conversation,” Mr. Pease, Terrane’s president and chief executive officer, said in an interview this week, highlighting the financial squeeze most junior miners face these days.”
Take a look at NSU, Nevsun Resources. Back in January it received its license for Bisha and Lundin Mining is rumored to be interested in buying the company. Stock has been climbing.
Lance Lewis on minyanville.com was the one who turned me onto the stock – other juniors that he likes are MFN, MRB, NGD, GSS, BAA, GRS
Gold prices are likely to hold if not increase even in an inflationary environment where stocks will likely underperform hence the selloffs the moment inflation issues arise. Bernanke is trying to let the air out of the bubble slowly—i have a feeling what the Fed is seeing is much worse than they are letting on. The “perfect storm” of inflation-weak dollar-housing crisis-and credit/financial market crisis-job crisis is looming and the fed sees the writing on the wall and is starting to let the air out slowly. These issues will not resolve in a year if not longer- and even tho the stock market is a 6mo forward looking entity…..thats still a year of bad earnings–weak jobs reports- weak manufacturing- inflation woes–credit woes. With gold stable in the 900 area….there will be consolidation in the Gold Industry and alot of second tier gold producers will look attractive.
[...] early June, I wrote that I was “100% bullish on gold.” Since then, gold climbed over $100, from around $870 to over $980, before retreating last week. [...]
hello___ i am from turkey
i am living at old gold places of armenian
if i have a good alerts we can have a big goldss
if can u help me we can find a lot of goldd
if can u communicate with me _?? it is ok…
we will find a lot of gold but i must to believe to this company
For the first time in several months, I am 100% bullish on gold. I currently hold long positions in both junior and senior mining companies, including U.S. Gold (Amex:UXG) Golden Star Resources (Amex:GSS), IamGold (NYSE:IAG), Gold Fields (NYSE:GFI) and AngloGold Ashanti (NYSE:AU).
Can you explain why you are 100% bullish on gold at this point? I am long-term bullish on gold and hold a core position of gold & silver bullion but I have to admit that the charts look rather weak right now and all this talk of rising interest rates might not help gold in the short run.
@Chris: I hear what you are saying, and the past few days fed speak has focused on the inflation threat and hinted at rising rates. So gold should be reined in, right? Your analysis makes sense, but yesterday afternoon, following Trichet’s comments, commodities took off like a bat out of hell. Unless they retreat quickly, and I mean in the next few days, I think gold is likely to rock. The other clue? Silver (often a leader) did not share gold’s weakness early this week. Now the market may prove me wrong as early as today, in which case I’ll flip flop without shame, but that’s what I see right now.
Here’s my 2 cents. With the credit situation, junior miners experience problems with financing. That provides a great opportunity for experienced old timers to come in, provide funds and technical advices in exchange for warrants and percentage on future profits.
If you are curious about merchant banking with miners, I recommend you read this corporate presentation :
http://www.aberdeeninternational.ca/
*Not a recommendation.
There was a good article in the Globe & Mail about juniors and their financing problems.
There is an opportunity in the juniors for sure. They have been annihilated in the past months.
“As lenders balk, big miners step up
ANDY HOFFMAN
From Wednesday’s Globe and Mail
Terrane Metals Corp. head Rob Pease knows exactly what would happen if his junior mining company asked to borrow $40-million (U.S.) from a major Canadian bank.”It would be a very short conversation,” Mr. Pease, Terrane’s president and chief executive officer, said in an interview this week, highlighting the financial squeeze most junior miners face these days.”
http://tinyurl.com/6lqn2m
Update: I just added Tan Range Exploration (Amex:TRE). That’s Jim Sinclair’s operation. Its set up as a royalty company.
@Victor: you make a good point, and I think financing requirements need to be weighed against exploration and buyout opportunities.
@Chris: thanks for the link
Take a look at NSU, Nevsun Resources. Back in January it received its license for Bisha and Lundin Mining is rumored to be interested in buying the company. Stock has been climbing.
Lance Lewis on minyanville.com was the one who turned me onto the stock – other juniors that he likes are MFN, MRB, NGD, GSS, BAA, GRS
Gold prices are likely to hold if not increase even in an inflationary environment where stocks will likely underperform hence the selloffs the moment inflation issues arise. Bernanke is trying to let the air out of the bubble slowly—i have a feeling what the Fed is seeing is much worse than they are letting on. The “perfect storm” of inflation-weak dollar-housing crisis-and credit/financial market crisis-job crisis is looming and the fed sees the writing on the wall and is starting to let the air out slowly. These issues will not resolve in a year if not longer- and even tho the stock market is a 6mo forward looking entity…..thats still a year of bad earnings–weak jobs reports- weak manufacturing- inflation woes–credit woes. With gold stable in the 900 area….there will be consolidation in the Gold Industry and alot of second tier gold producers will look attractive.
Richmont Mines (RIC) -
The price has fallen, yet the fundamentals have improved. Good for a couple of points.
Bill Cara’s website often has information about junior gold miners. But Bill Cara himself has been negative on gold for awhile, so his last summary is about a year old. If you follow his blog you can get some ideas.
http://www.billcara.com/archives/2007/06/goldminer_report_tues_june_26.html
@Robert: agree that Cara is one of the best. A real class act. I read his blog, and have included it in my recommended links for years.
[...] early June, I wrote that I was “100% bullish on gold.” Since then, gold climbed over $100, from around $870 to over $980, before retreating last week. [...]
hello___ i am from turkey
i am living at old gold places of armenian
if i have a good alerts we can have a big goldss
if can u help me we can find a lot of goldd
if can u communicate with me _?? it is ok…
we will find a lot of gold but i must to believe to this company
here is a lot of gold places:::::
i want to have a gold search alerts
who can help me===)) ===my e mail is elgajiye_6284@hotmail.com