Posted: Tuesday Feb 7 12:16:26PM 2017
Gold has performed better than I expected. I guess the uncertainty of the new administration has created some demand.
Long term, I have zero faith that the politiicians will balance the budget and cut expenses in any meaningful way. That means the deficit will continue climbing and money printing will continue. The only sure thing is that politicians will make rules that benefit themselves. Gold will continue to rise over time.
But shorter term, the strong dollar has made it harder to make money with gold and gold stocks. We have started raising rates while the rest of the world is still trying to stimulate their economies by devaluing their currencies. Pres Trump would obviously like to do the same but the argument for continued money printing and artificially low rates is fading. So I'm looking for gold to do ok, not great in 2017.
Many of the so called experts are saying that they are recommending junior explorers vs producers. Historically junior explorers have done the best during early stages of bull markets. Many of these stocks jump based on a few drill holes or other PR related news. I have trouble picking winners in this kind of environment and still think picking cheap producers or near term producers who are close to finishing construction is a good method. By the time they get to this stage, you know the basic size of the deposit, how many shares are out and when you should see them hit production numbers. You have a decent idea of what it will cost to produce the gold and the eventual profit margins.
Currently I am holding Blackham Resources, BLK.ax, an Aussie producer just commencing commercial production. Big 6 million oz resource and 100K oz production/yr. Because of the big resource, they are likely to approve improvements that will move production to over 200K by 2020.
Posted: Tuesday Feb 7 12:25:14AM 2017
What do you think still there are chances for rising price of gold stocks??
Posted: Wednesday Jan 11 12:27:48PM 2017
Sold the rest of my gdxj options this morning for 6.75. Cost was 2.90. Pretty good for a few days of holding. Expiration isn't for 9 more days but got tired of watching the bouncing ball. Gold still looks ok so bought another little batch of gdxj expiring in a month for 2.63 this morning. So far so good as currently at 2.94.
Posted: Sunday Jan 8 9:12:14AM 2017
NXS.V / NXXGF - Nexus Gold Completes Drilling at Niangouela
NEXUS GOLD COMPLETES RAB DRILLING AT NIANGOUELA GOLD CONCESSION, BURKINA FASO, WEST AFRICA
Posted: Thursday Jan 5 9:04:46AM 2017
GDXJ +2.27 to $36,48 sold 1/2 my options today for a double. Small money but I've ridden too many stocks up and down without taking a profit.
Gold is rallying on the weak dollar and inflation talk as well as the New Year bounce. How long will this mini rally last? Don't know but miners have been oversold and normally recover a bit after tax loss selling.
Posted: Tuesday Jan 3 1:03:04PM 2017
Hi Bob, copper has been on a tear recently for a number of factors (Trump being one of them). I still hold Western Copper and Gold, WRN, which is working on mine approval in the Yukon. I posted about them earlier last year when the stock traded below $1. It is now about $1.85 and touched over $2 last week. They are developing a huge, long-life mine with as much $ in gold reserves as copper reserves. WRN had a good run up in the last couple of months but I expect there is still a lot of upside if they can get mine approval. The approval process is a long and arduous one, but I think the majors would be interested in taking out WRN once approval is attained, maybe before. There are many environmental concerns about the mine plan which the company is attempting to address.
Posted: Thursday Dec 29 1:20:07PM 2016
Gold and gold stocks rose from the dead last January and shot upwards until summer. Since then, they have given back much of their gains. Many years, gold and gold stocks recover from tax loss selling to do well in the early months of the following year. Could it happen again? Can you trust gold stocks??????
I sold out of most of my gold stocks a few weeks ago, after giving up once again on the supposed bull market in gold. But short term there might be a window to trade gold stocks. So today I bought a tiny position in GDXJ options. It matures 1/20/17 so I'm not putting a lot of faith in a long run. So far so good. GDXJ +9.23% today and positive for the last 5 days. Bottom was US$28 on 12/22 and closed today at 33.48. Will it last ??? Don't know but GDXJ hit a peak over US$51 on 8/11/16 so it has come down a lot and especially in the last few weeks. I will be watching closely next week.