Gold, Gold, Gold!

competentone · 03-15-2007, 09:36 AM

I've been loading up on gold mining stocks -- I'm expecting that foreigners (specifically the Chinese) are going to get tired of holding dollars and will be putting substantial portions of their currency holdings into hard assets, particularly gold.

Anyone want to express opinions on my gold-bugginess?

techweenie · techweenie's Garage

Sound financial planning. Gold is the traditional hedge against disaster, and we are teetering on 1.) expansion of M.E. conflict, 2.) pandemic, 3.) housing/finance/construction market collapse, 4.) China, Japan and other lenders calling in trillions in loans to the Feds, 5.) another major terrorist attack, etc.

Any of the above could cause gold to rise. 30% of a portfolio's holdings in gold makes sense in unsteady times.

Burnin' oil · 03-15-2007, 09:44 AM

I bought one billion shares of Kinross Gold at a little over a buck per five or six years ago. It had a reverse split but overall is doing good. With the price of gold so high right now I am not inclined to put anymore into miners. What are you buying?

http://finance.yahoo.com/q?s=kgc&d=v1

competentone · 03-15-2007, 09:56 AM

Quote:

Originally posted by Burnin' oil
I bought one billion shares of Kinross Gold at a little over a buck per five or six years ago. It had a reverse split but overall is doing good. With the price of gold so high right now I am not inclined to put anymore into miners. What are you buying?

I bought some Golden Star (GSS) yesterday -- but no where near a billion shares worth!

They've been out-of-favor in the sector for the past few years and have an interesting plant coming online to handle sulfate ores. I think they've got better upside potential than the rest of the sector.

Being unhedged though, they'll take heavy hits if gold pulls back. I wrote some covered calls on some of my holdings -- I just couldn't ignore the premiums and will still be happy with the return if my shares are taken when the options expire.

http://finance.yahoo.com/q?s=GSS

kach22i · kach22i's Garage

Canadian mines can get sideswiped by eco laws making them higher risk than just purchasing gold futures.

Still would rather have stock in a stock than in a future though.

tabs · 03-15-2007, 10:23 AM

Sounds like a sure way to lose your a$$ets...

Sonic dB · Sonic dB's Garage

Quote:

I bought one billion shares of Kinross Gold at a little over a buck per five or six years ago

OK not sure if Im reading this right...
you spent $1 billion on stock?

turbo6bar · 03-15-2007, 10:26 AM

Why are you choosing gold stocks over the physical gold? Is this a hedge against inflation or a trade to make bucks?

M.D. Holloway · 03-15-2007, 10:28 AM

Gold, Silver and other prescious metals are always a fairly good bet but Copper & Nickel have gone crazy - stay away for a while.

Look at Elk Valley in Canada - their big time into coal and they have at least 50 to 75 years more of production. That would be one moneral I would invest in - also diamonds (Dyvac, Tahera).

Steel and Iron looks to be coming back as well.

Burnin' oil · 03-15-2007, 10:46 AM

Quote:

Originally posted by Sonic dB
OK not sure if Im reading this right...
you spent $1 billion on stock?

Perhaps a slight exaggeration . . .

pwd72s · 03-15-2007, 11:01 AM

Quote:

Originally posted by tabs
Sounds like a sure way to lose your a$$ets...

Tabby & I are in agreement. I went through my gold bug stage decades ago. Still have some 1 oz. coins about...gee they're pretty to look at, but I don't look at them often. They are worth more than I paid for them, but other investments have fared much better. I look at precious metals as something to have & hold only in case of a total societal and financial meltdown.

Nostril Cheese · 03-15-2007, 11:04 AM

Quote:

Originally posted by tabs
Sounds like a sure way to lose your a$$ets...

So we should be investing in antique spoons?

the · 03-15-2007, 11:06 AM

I'm in agreement, too. Gold is for the tinfoil hat crowd. (Although I'll admit to dabbling in gold in the past).

One thing that is odd to me. I still have some Newmont Mining, which supposedly is one way to play gold. I.e., a hedge against rough times, pessimistic times, market drops. Close tie to price of gold, when gold goes up, it goes up, supposedly.

But IMO, it has generally traded like any other stock. When the Dow is up, Newmont is generally up, and when the Dow is down, Newmont is down.

Anyways, no more gold or gold related stuff for me, thanks.

Joeaksa · 03-15-2007, 11:21 AM

Making anywhere from 7% to 23% on my investments in the last 6 months. Happy with that without diving into something as risky as gold.

M.D. Holloway · 03-15-2007, 07:41 PM

One word: Plastics...

alf · 03-15-2007, 08:13 PM

Having Gold in hand in times of real disaster is a real asset to have, ask any Vietnames refugee that escaped certian death. Having paper that say you own gold is worth the value of butt wipe in those times. If you are buying gold for when SHTF, get the actual stuff.

alf · 03-15-2007, 08:14 PM

a good rifle and ammo will also be good to have when SHTF

tabs · 03-16-2007, 02:27 AM

Quote:

Originally posted by alf
a good rifle and ammo will also be good to have when SHTF

Funny how we always come back to the spoons...

tabs · 03-16-2007, 02:34 AM

Competent, Why don't U just go out and buy RE in CA, LV or AZ...

The time to have bought Gold was several years back when it was $259 an oz not when it is $630 an oz...U like the idea of buying high so U can sell low?

on2wheels52 · on2wheels52's Garage

I'm happy to be the middle man when gold changes hands, always a buy/sell premium. I've got a bit set aside but felt the $600's was a good time to liquidate most of it.
Jim