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Gold Miner Picks

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If anybody is interested, MoneyWeek this month published a special report about gold in which they recommended Agnico Eagle (TSE: AEM), Randgold (LON:RRS) and Gold Standard Ventures (CVE:GSV).

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I haven't read money week but if you want a heavyweight gold miner that consistently meets & often exceeds targets you won't go far wrong with RRS.It is run by Mark Bristow who has been there since inception & he has serious skin in the company holding around 740,000 shares.

 

As usual DYOR I don't now hold any shares in RRS.


The problem with common sense is, its not that common.

 

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I have sold a large portion of my gold miners - probably too early but I was more than happy with the gains and I am heavy gold when I take into account my physical. Still have a small stake in PAF and CEY for the dividends - If there are any dips I will be topping those two up.

If I had to pick one out of the money week picks I would go with RRS. I really wish I had bought into this company last year when I was looking but I bought physical instead :) 

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Gosh...what a drop... did a quick twitter/google search.

RRS announced their Q1 report today and from what it looks like it seems they have operational problems at 2 African mines which reflected on their Q1 report and it looks like that investors are concerned whether RRS can meet their targets?

 

 

 

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Nothing goes up in a straight line, and for a sector that has more than doubled in the last 3 months you should not be surprised to see a sharp profit taking event. It's not uncommon for some stocks to get walloped 10% amid a selloff. It goes with the territory when you buy into a high volatile sector. All gold stocks are stretched very far above their moving averages, so don't be surprised to see a sharp correction with some stocks can drop 30-40% or more.

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@KDave

15 hours ago, KDave said:

Does anyone know what happened to RRS today? Down 10% according to my basic app. Can't easily find out why as I am away ATM. 

Nothing, just a bit of profit taking coupled with a bit of short selling.


The problem with common sense is, its not that common.

 

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I was hoping for a further drop today to allow an entry into the stock but its not happening. Oh well, perhaps later in the year we will get the long predicted but ever elusive pull back in PM prices and mining shares. 

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The Gold Report published an interview with Roth Capital Partners. They tipped Coeur Mining (NYSE:CDE), Pretium Resources (TSE:PVG), MAG Silver Corp (TSE:MAG), Pershing Gold Corp (NASDAQ:PGLC) and Integra Gold Corp (CVE:ICG). 

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On 12 May, Business News Network interviewed Rick Rule on gold miners. It's 45 minutes long: http://www.bnn.ca/Video/player.aspx?vid=860701

RIck Rule is one of the top experts on natural resource investing: he works for Sprott and has a lot of experience and plenty of skin in the game. For those without the time to watch it, he specifically tipped Ivanhoe (TSE:IVN), Anfield (CVE:ANF) and Reservoir Minerals (CVE:RMC). Also, in answer to questions from callers he said he liked Pan American Silver (TSE:PAA), NovaGold (TSE:NG), Brazil Resources (CVE:BRI), Silver Wheaton (TSE:SLW), Pretium (TSE:PVG), Detour (TSE:DGC), Franco-Nevada (TSE:FNV) and Newmarket Gold (TSE:NMI).

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My pick is Fres which I hold, more or less a 50/50 gold/ silver miner & is up over 60% so far this year, it is also quoted on the UK stock market, the company operates in Mexico.

Everyone's risk appetite is different if you are not prepared for severe price movements down as well as up don't invest, but FRES has been one of my bankers over the last 7 years,it is always useful to sell some when you see a decent profit.

DYOR


The problem with common sense is, its not that common.

 

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The HUI/gold ratio seems to indicate that the gold miners are fairly priced at current levels. Looks like we'll need to see a further rise in gold, or at least the expectation of it, before there is another leg-up in the miners.

27161090335_4bf00e3843_b.jpg

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I've noticed that over the last 5 years, the relationship between HUI and the price of gold has been approximately:

HUI  =  gold * 2/3  -  600

At current prices, this makes the leverage of owning gold miners between 5:1 and 6:1. This of course ignores other factors such as dividends, and represents the highly oversold nature of the miners in the last five years. If prices rise further, I would expect the leverage to fall to 2:1 or less, where it was during 2005-2011.

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I have recently taken a decent long term stake in Newcrest Mining, was tempted by debt free RRS at the recent lows but chose Newcrest as my core stock holding for gold going forwards for a variety of reasons.

Rather frustratingly I had to phone the broker to place this order instead of doing it online, as the shares are traded OTC and in this case are not shares at all, but American Depository Receipt's (ADR's) - a certificate representing in this case one share per receipt. Knowing nothing about an ADR I had some questions about them, in particular the liquidity for when the time comes to sell, but was assured this was a common way to trade this security and that this is the only way to acquire a stake in the company outside of the Australian stock exchange, which my platform does not trade on. Anyway after going away and researching I phoned back and pulled the trigger. Never seem to stop learning.    

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2 hours ago, Silverslave said:

K92 Mining Inc. (TSX:KNT)

 

to short or to long? :D

maybe you could share a little more than just a name?

 

HH

Edited by HawkHybrid

trade in currency, save in gold

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Highland Gold Mining (LSE:HGM)

Russia based but I'm sure there is a UK connection. I took some at about .70 two years ago. Watched it go down to .20 during the Ukraine events. Averaged down to about .50, its .96 now.

5% div.

Edited by stackspot

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Just made near enough £800 today sold 1000 Fres  @ £14.56 ,I could have got more but Halifax online would not let me do a normal real time trade in Fres due to volatility/Fres going to da moon LOL.I had to put a limit order in, I also at the same time put a limit buy order in at £13.70 expiring in 1 weeks time as I guessed the rise was overblown.Not expecting it to be fulfilled within 3 hours.

This is one time you do not want to be short of PM shares.


The problem with common sense is, its not that common.

 

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if your pm shares don't rise on news like this then it's a losing bet.

many of the better mining shares are the biggest risers. notice how

randgold lse:rrs has hit +21% on a ftse red day.

 

HH


trade in currency, save in gold

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I sold my Randgold and Hocschild. Very tempted to sell some of the Canadians too. I'm pretty sure we'll be able to buy these back at much lower prices later in the year.

This is an election year in the USA and the establishment will pull levers to make the economy and the stock market look like they are booming so that voters will feel warm and fuzzy and vote Hillary in. This will be bad for gold and gold miners, so unless there are further disasters coming, there will be good buying opportunities. TBH I'm even suspicious that the recent poor job figures (non-farm payroll) were deliberately low to get the bad news out of the way now, so that better numbers can be published near the election date.

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