CRAMER is clueless and Kudlow is a closet gold bug I think, but what they think is irrelevant.
Watch the BIS. Bank for International Settlements. When they get scarred, i.e., the biggest money on the planet, will show itself. Not because they want to, but rather, because they have to. take note.
There presence lately has been felt by many. PPT and the rest, are at their beck and call.
If gold wins the day, the ramifications are incredibly staggering. Remember the "new paradigm" in tech that was touted for some years?
If the real power paradigm shifts, the one that exposes the games of those that used the stodgy old metal's to churn profits year after year after year, becomes exposed to the world, the proverbial short hits the fan.
Burma Shave Guy
kudlow and kramer on cnbc, had the ceo of barrick on. talked about bright future for gold stocks. kramer also tried to explain to all the .commers that when you produce an ounce of gold for $170 and are able to sell it for $326 you have instant profit, not projected profits 10 yrs. from now!!!! anybody else feelin excited about tomorrow? i cant get away from this stinking computer!!!
The best gold stocks to own are the unhedged North American companies like Goldcorp (GG) and Agnico-Eagle Mines (AEM)..
Glamis Gold (GLG) and Meridian Gold (MDG) are also unhedged and debt free, they have mines in Central America which shouldn't be too risk.
If you don't mind speculation you could try the South African companies. Durban Deep (DROOY) has been around forever and should be unhedged this summer. Goldfields (GFI) and Harmony Gold (HGMCY) are also unhedged with low debt. Remember these are South African and are riskier than the North American companies that's why the NA companies are priced higher.
Newmont Mining (NEM) is the biggest and should be the one the institutions will go after once the price of gold really starts going..they do have a hedge book but are working to unwind it, the company has a non-hedge policy.
Avoid hedged companies such as Barrick (ABX), AngloGold (AU) and Placer Dome (PDG) these companies could be in trouble when gold rises..
It also wouldn;t be a bad idea to look at silver stocks like Pan-American Silver (PAAS), Silver Standard (SSRI), and Hecla Mining (HL)
"Pan-American Silver (PAAS), Silver Standard (SSRI"
Like these as well. Be carefull on PAAS all they talk about now is how bill gates bought 5mln shares and buffet owns xx xmillion ozs of silver. But some good people over there.
Nicely said el latino. One question. Do you think HECLA is overhedged?
I'm an owner, and dislike hedging, because I don't buy miners that are really just hedge funds. Barrick is THAT.
I don't buy anything, that only does well, when the product they are producing does not do well.
Granted, there are degrees of differentiation, but when I bet on Silver for instance, I want to be compensated if I'm right.
Ashanti, Cambior investors invested in gold, but got bitch slapped with a rise in the price of gold. Do you think HL has overdone its silver hedging? I don't, but I've been wrong before, and I detest all hedging in the metals, but I have NO problem with miners hedging against currency risks.
At least they would seemingly still believe in the product they are producting. GFI is doing some currency hedging for example, with the rising Rand relative to the dollar, and I think it's probably a good idea.
I'm no currency trader, but it seems GFI only bets on currency relativities, and never bets against the product it produces.
That's why I love Gold Fields. NEM says she'll drop another million oz's from her hedge>>>>I'm liking her better as well.
Burma Shave Guy
meant to post this here.
Tricky subject is gold.
by: fred222bowzerz 06/06/02 11:17 pm
Msg: 9004 of 9004
Tricky because all banks disdain it. Tricky because ALL people understand it has value.
The REALLY tricky part, is convincing the population of the world that the value of gold somehow has become irrelevant, in this new day and age.
The Motley Fool guys were on the Fox channel this evening with Bill O'Rielley on his "Factor" show this evening with the promo, portending "we'll tell you about specific investments you should make" for FOX viewers.
The Motley Fool guys, in their standard "fool" headgear recommended CD's for short term investing, and index funds for long term investing, and thought Starbucks and RJR might be good plays, but perhaps not at the current levels the equities are trading at. <big grin>
Man o man, what a different world it is. No mention of gold of course.
Coffee and a smoke then?
Burma Shave Guy
seems my opinions differ from most ....
i prefer non-hedged gold miners,
and i believe
qualify (but check for yourself)
and i like
for a straight bullion addition to a portfolio
somewhere i think i saw barrick, anglo, and others
already "gave away the mine" with their hedges
do your own research ...
Also consider DROOY, and for a silver play CDE looks very good and ready to move. I agree NEM is stable and a safe long term investment. I have 60% NEM, 20% DROOY, and then 20% GFI,CDE,MDG,PMU and BGO. If you are going to get into gold stocks, be prepared for a lot of ups and downs.. buy on the dips and hang in there and you will do extremely well.. this is still very early in the bull market.