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Indeed a steal. But the Mexican Agency is not there to profit on properties. Their mandate is to stimulate exploration through their auction mechanism.
FWIW, CKG is no longer a grass root play with the Cecilia acquisition where there is already inferred ounces. A hole of 180 meters with 1.3 g/t gold and 20 g/t silver is very significant. And there is more.
Buying and holding CKG has to do with potential. How much does one pay for the high potential of CKG's properties? And what are the odds of discovery? On these two questions we all have our opinion. That is why the stock is where it is.
I would be surprised if there is a crash. But I can see a major correction down to DOW 6000-7000 in the next 6 months.
Thanks,
I do not have the time to trade these days. But will possibly add this activity next year once my current obligations are fullfill.
BTW,
I see you have high teck connections. I may want to diversify more and add to my very small high teck PF. Any good suggestions ?
Thanks Michael,
I am not sure if I will be around on a regular basis. You guys are posting a lot and my wife is already complaining I spend too much time on my machine.
She loves the profit we are making with our favorites but she hate the addiction <g>
<CNI, IVN, CBD, CKG, SVL, ABZ, SRM, AQI, PWI, WRM.WT, INM, GRS, ETG>
A nice list!
<May be a mistake, but it sure looks cheap here.>
GG cheap? Goldcorp has a terrific mine, but the sock is very expensive on most counts. I guess it will remain expensive cause it is a darling with its high grade stuff.
George,
Gold stocks are holding better right now simply because they are taking this opportunity to reconnect with gold.
Gold $350 is important here. It is on the 50 DMA and just below the 50% retracement. On the other hand, $355 is gone although it should have been major support since it was major resistance on the way up.
I think we could easily retext the breakout triangle where the 200 DMA is.
Still there are some excellent bargains shaping up.
RDU..another one on our list. Managememt could repeat what they did with Mar-West.. i.e. Sell the deposit to Glamis.
Sure RPD was a great one we suggested it near $2 at the start of this bull run.
Now we consider this one to be our next Francisco Gold:
http://finance.yahoo.com/q?s=CKG.V&d=c&t=1y&l=on&z=b&q=l
Minefinders has been one of our favorites for years and suggested it well below $1.00. And it ain't over. But I can't see better places to be.
I can see a better reason why gold stocks have been lagging gold in recent months. They are simply ahead of themselves and need to catch their breath.
The November 2000 - June 2002 first leg in stocks was simply breath-taking.
All I can say is that I never liked their promotional style. I never really analysed their gold assets.
This is not typical at all of juniors.
BTW, that (the juniors) is where the big money is made, especially now that producers are all at least fairly valued and will move up and down with the price of gold.
<Is there a lot of room for cheating? >
With OTC bulletin board stocks, I think ther is some room as the SEC is not very vigilent on promotional activities of juniors. I mean a company can advertise 5M ounces in gold proven reserves even if they have not been proven by rigourous methods. There are living examples. But this is not the situation on Canadian exchanges. This doesn't mean that there are no very good US juniors.
<How reliable are the publicly available estimates of the proven/estimated gold reserves? >
I would say they are very reliable for Canadian juniors if they certified by independant professionals. But one must understand the various categories of resources/reserves.
<Do you or anyone else have a list of those juniors he is recommending??>
Send me an email at claude.cormier@ormetal.com and I will be happy to send you a list.
Thanks for your very infomative post. I will investigate these few candidates.
Hello mlsoft,
May I ask what are your favorite core short positions?
Being so deeply involved in the gold market, I have very little time to research those US equities that will underperformed the general market in the coming big wave down.
WHT is Wheaton River a junior to mid-tier gold and silver producer. Total production is 200,000 ounces of gold equivalent (Almost 50% gold 50% silver from 3 mines in Mexico. ). It has no debt some $20M in cash and is slightly profitable. Undervalued compared to its peers.
/ ...because it seems to be a common knowledge thing that I / have been aware of for years.
Gold occurs in sea water to the extent of 0.1 to 2 mg/ton, depending on the location where the sample is taken. As yet, no method has been found for recovering gold from sea water profitably.
This quantity is thousands of times smaller than the average quantity of gold contained in gold ore which is calculated in several grams per ton. Gold deposists average some 2-3 grams per ton (not milligrams).
Paula,
I think that you are not really familiar with the reality of gold.
Central banks are not dumping gold. Although there is some sort of movement in gold inventories from one CB to another CB, total gold held by central bank is only 10% below what it was decades ago. Only a few hhave reduced their gold holdings.
The reality is that there is at least 4 times what CB's have that is in private hands in all forms, jewellery, bars, coins. These holsed consider their gold as a store of value that can be used as a medium of exchange: money.
Right now there is a big movement towards digital gold. That is gold that circulated electronically while the physical bars remain in vaults. You will hear a lot more of this in 2003 with companies starting to use goldmoney to pay dividends instaed of US dollars.
As for you theory of recovering gold from see water..it will probably come in 25, 50 or 100 years when gold is in the 10th' thousands of dollars. But then there will still not be enough and gold will still be on of the rarest value on earth.
It's all about valuation. Markets are headed much lower.
http://www.zealllc.com/2002/valu.htm
Hello George,
I know you follow gold.
There are two indicators that make me believe that a very important rally is not very far.
First the XAU/gold ratio seems to indicate that relative to gold, stocks are now as undervalued as they were at the 3 most recent lows of March 2001, December 2001 and July 2002.
Second, it seems that the USD is now completing a corrective ascending triangle (or rising wedge) and is about to break to the downside.
Fundamentally, all things are too rosy right now. The illusive peace dividend is about to run its course. Maybe we will have to wait till early 2003 for this reversal in gold prices to take place as the action in Iraq and rising oil prices take the center stage. But I think that the fall in the USD will ring the bell. In short, I think that the flight from the USD is just ahead.
Thanks Zeev. I had already spotted Apple and intend to buy it between now and the end of the bear.
Can get used to this day trading thing. Maybe one day.
Hello Zeev,
<I like ESST almost as a value stock>
You metioned SKX as a super value stock. ESST is almost one. WOuld you care throwing in our 3 best values.
Claude
Zeev,
As a curiosity, do you mind telling us how many regular Naz stcoks do you have on your watchlist of daily traders ?
FWIW, I expect a bull market in gold to last till the end of the decade. As it happened in the 1970's it will be the best investment. Both hysical gold and gold stocks are LTBH.
The weighting on the DOW:
http://www.safehaven.com/Editorials/Harris091902.htm
<Think eds effect is holding the dow down>
MMM and PG are doing the damage today.
Although I am new to this thread, permit me to present an opposite view to Schaeffer's opinion. Hamilton, although he is more bearish long term, doesn't allow a lot of probability to new extremes numbers. A few great charts here:
http://www.zealllc.com/2002/crash.htm