Discussion in 'Metal Futures' started by zxcv1fu, Jan 1, 2003.
How to trade the recent hot sectors? Any index or funds besides stocks?
Fidelity and Franklin tend to do well over decades,however they may still have a 3% sales charge perhaps??
Tend to keep a percentage of dividend gold stocks in a retirement fund as insurance & for long term trend .
Actually over decades they tend to under perform the SPY even with spikes like NEM @ $100.00.
''The streets are paved with gold''
I believe gold is in for a huge up move. This up move will be long and slow with major pullbacks that may last months.
Probably the best way to trade this market will be to identify smaller gold producers.
Make a short list of those that are currently making smallish profits off there production, but have not sold much of their capacity for the coming years.
These companies benefit most from a rise in the gold price and also make attractive takeover targets for the larger mining companies.
Remember as gold rises marginal mines become profitable and total production increases.
It costs most companies about $300 to produce an ounce of gold, so any increase above $300 provides an exponential increase in profits. At $330 they make 10% profit. At $390 they make 30% profit.
Buy these stocks on downturns in the gold price and take profits every few month the market runs up to make new highs.
Re-enter on pullbacks and repeat the process.
By the time gold is at $800 an once you will be very rich.
I have not found an index for gold play, but PMPIX is moving with the gold index.
Here's a good stock for any mega bulls out there. VGZ it's like a long dated call option on gold that nver expires. It's costs of production are very high and right now I don't think its mines are even operational. But if gold hits the high 300's and above then they get bak in business and earnings go through the roof.
Very volatile though, to lose 50% of your investment in a month or so is not uncommon, but then that potential is available on the upside as well.
Keep away from the companies that hedge their production, they'll never make you any money. Just look at what ABX's share price has done over the last month in relation to the price of gold. Incidently if the gold bull really takes off I wouldn't be surprissed to see companies like this go bust.
Anyone has opinion of investing in any of these when time is right:
ABX GG GFI NEM PDG FCX RGLD AEM AU GOLD SWC PAAS SSRI FSAGX FGLDX SCGDX UNWPX VGPMX FKRCX USERX UNWPX FDPMX INIVX GOLDX INPMX RYPMX PMPIX
Can anyone give me a reasonable explanation why gold repeatedly jumps three dollars an ounce in such a short time span ?
The buyers want to buy, more than the sellers want to sell.
Sorry, HardRock, I meant to write "$ 3-00 moves" rather than
"$ 3-00 jumps" because the price goes up, then down, then up again and down again and so on.
With what is happening in the world there is surely no way I'll get shaken out by such senseless moves.
Which big players are still at it trying to push the price down ?
FWIW, I'm in:
DROOY, jpn.v (jpnjf.pk), nri.to (nvglf.pk), tnx.to (trxaf.pk), cde..
All of them have had good jumps, but I've been in Drooy the longest.
I've been buying Au stocks from when gold was @ $270 spot.
Separate names with a comma.