Going For the Gold!

moriarty-crop

Gold is not a commodity; it is not an investment; gold is money. –James Rickards, Currency Wars.

My last post on gold and mining stocks for a while–I promise.

Gold stocks are trading at multi-decade low valuations on the basis of revenues, income, and earnings. However , gold stocks are today selling near their 22-year highs based on reserves. The market knows that mines are depleting assets, and companies are struggling to increase reserves. Plus, mining costs are rising-ttp://www.kitco.com/reports/KitcoNews20130326AS_cpmCash.html. We are talking about tough conditions for mining companies.  So if I can strike gold, I will be $$$. I hired the Indiana Jones of mining exploration stocks, Bob Moriarty, pictured above to find the gold. Do you want to invest?

No, I didn’t think so. You are an investor not a dreamy-eyed prospector or sucker-seeking promoter.  Gold companies can be divided into three broad categories: the major producers, the junior or developmental companies, and the explorers. Gold mining companies have been the second worst capital destroyers next to the airline industry, so I will have enough problems to find the right companies than venturing into the riskiest area of mining–exploration.

Hear what Mr. Moriarty has to say about his wild and woolly life (scroll down to listen to the MP3 interview) http://bullmarketthinking.com/bob-moriarty-when-there-are-no-more-sellers-left-you-only-have-buyers-we-hit-that-point-a-week-ago/

Moriarty: A comment I heard many years ago is that at every top there are a hundred reasons to buy and at every bottom there are a hundred reasons to sell. It sounds like one of those truisms that is too simple to understand. But when 99% of the people want to buy there are few left to buy; you must do the opposite.  We hit that point last week (Feb 22, 2013) in the junior mining stocks.

and/or read another here:Shelter From The Storm Bob Moriarty on Gold

Yes, tramping through jungles may not be your cup of tea but it beats the corporate life:

Studying the Market

Information sources:

http://www.321gold.com/   (Bob Moriarty’s blog)

www.gloomboomdoom.com

www.goldstockanalyst.com

www.explorationinsights.com

www.hraadvisory.com

www.caseyresearch.com

www.stealthinvestor.com

www.capitalandcrisis.agorafinancial.com

www.theaureport.com

www.kitco.com

www.mineweb.com

www.resourceinvestor.com

www.gold.org

www.usfunds.com

www.tocqueville.com #1 Gold Fund

www.firsteaglefunds.com

www.thefoldshow.com

www.seekingalpha.com

as well as the company websites of Rubicon, Eldorado, Romarco, New Gold, Franco Nevada, Barrick, Newmont, Angico Mines (AEM), etc. Luisten to the conference calls, view presentations.

Asking a mining company about the future price rise of gold is like asking a barber if you need a haircut. Wipe the gold dust away and study the contra-side:

Gold Bubble: Profiting From Gold’s Impending Collapse

Yoni Jacobs  Yoni Jacobs (Author)

However, unless REAL interest rates become positive and/or the currency wars stop, I don’t see how gold gets crushed, though the market may go sideways for who knows how long.

Ok, after this post we will get back to finding undervalued stocks like:

Obagi

 

2 responses to “Going For the Gold!

  1. Investing in gold isa great move! It is a safe and reliable option that many wise people are going for!

    • Well, I wouldn’t want to be invested in gold when real interest rates are positive and rising because then it will cost to hold gold as money.

      Also, I am more interested in small producing/development companies that are cheap, well-financed and can go up even if gold prices say flat.

      If gold were to drop to $1200 then 3/4 of the mining industry would be gone.

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