Post edited 4:17 pm – November 4, 2009 by shredmonster

I would have thought my gold mining stocks would be up more than they are.

I purchased some last week when gold dropped 5% but now some of the mining stocks are down with KGC dropping the most – down 15%.

Will said:

I think most gold stocks went up a lot during the week of 10/13/09 when the price of gold suddenly jumped to $1035 an oz from the upper 900's and there was a heightened interest in gold. After that there was a sharp drop during the 4 consecutive day of losses. Most of my gold stocks are still in the red. I think there will be more governmental gold purchases from here on out. I can see gold retreating back to under $1,000 anytime soon, or ever.

Don't you mean 'I can't see gold retreating back to under $1,000 anytime soon, or ever.”

The Street Authority sent out a promo for, CMIN, today with some interesting facts. As many of you know, I have owned and told ya'll about this company, Oct.11, I told ya'll about some bad rumors/info about their operations and told ya'll that I sold the stock. Many things have happened, New Management, New holes drilled, more land purchased and additional equipment brought in for drilling. I'm still on the email list and have read all the releases, now Street Authority is recommending as a buy…if everything goes right, this will be a big winner,however, if their prep work is not done, new management is also suspect, government homework/prep work, I believe this could be a real problem.   DYODD   I took my profits and love the idea and location of this operation, but I also know that they are in a state of flux and that bothers me.

Post edited 10:27 am – November 7, 2009 by Will

Analysis from Mineweb.com:

The financial crisis is now a year behind us and so far with very little inflation (which won't last long) it is unusual for gold to be acting so robustly. Usually when one sees a stock or a commodity going up when most of the usual reasons for its normal price behavior are absent, it signifies new, powerful and unknown force(s) have entered the marketplace.

Read on:-

http://www.mineweb.com/mineweb…..;sn=Detail

Thanks for the post Will. I hope you also read the post on, ww.commodityonline.com, about how India paid for it's gold purchase. It clearly states that India paid with foriegn currency, not SDRs. I'm smelling a rat outthere.

Gold's momentum is picking up dramatically – Eric Sprott

Eric Sprott of Sprott Asset Management gives his views on the effects of current economic management on the price of gold. Interview with The Gold Report

http://mineweb.com/mineweb/vie…..;sn=Detail

Post edited 12:16 pm – November 17, 2009 by stockcrazy10

From Agora's 5 MIN. FORECAST

“A rising gold price, however, is no guarantee that gold stocks will rise,” notes Chris Mayer, highlighting a bitter reality to many long-term gold investors.

“If you look at the Amex Gold Bugs Index, for example, it’s pretty much where it was two years ago, even though gold has recently made a new all-time high. Gold miners as a group struggled with rapidly rising costs. So even though gold prices rose, they didn’t make much money. This only serves to highlight that there are other reasons to like gold stocks that have more to do with the economics of the businesses themselves and the price paid for them.

“Here’s one pictures that tells an important tale: A rising gold price means we should see more gold produced. That’s basic economics. In fact, miners have invested increasing amounts to gold exploration. But importantly, the number of new discoveries continues to fall, and is rather anemic.

 “This a familiar pattern in the resource world in recent years. It’s no different in the gold market. Big discoveries are rare — and more expensive. According to data from Sandfire Securities, a typical gold mine development might go like this:

“Exploration, three-seven years and $15-50 million. Evaluation may take another three-five years and another $20-30 million. Development could take another two-four years and from $50 million to over $1 billion in costs. Finally, you’re ready to operate the mine.”

Chris’ point: Nothing beats proven resources and existing gold production, especially when you can find ’em on the cheap.

Gold is just a store of wealth preservation.  If the crap hit the fan gold would only be valuable when the NEXT formal system of government and commerce were set up.

Meanwhile what would be valuable are:  Food, Water, Bullets.   Gasoline perhaps for running generators.

I was wondering the same thing about physical – whether to buy at this point or not.

What about Silver then?  Can't that be used for the same type of piece of mind?  I already own a little bit of Gold and Silver so I guess I won't “Starve on the streets”.  (Hopefully not at least!)

But if you had, say $50k that you wanted to put into physical PMs to hold against inflation, would you get a bigger bang for your buck with Silver?

I found this thread from thetreeofliberty website (thanks Shredmonster ) and there are good reasons on both sides to buy or not to buy. The interesting thing is that the reasons not to buy is not that gold is bad. It is just that at $1,140 an oz, it is a tad too high and we should wait for it to go down. So overall, I think the reasons to buy gold and silver just make that much more sense.

http://www.thetreeofliberty.co…..hp?t=84173

>alegal immerigrant

LOL!

Riddle me this friends,

Right now, Gold has been exploding.  Silver looks poised to go too.  Right now EVERYONE is running to Gold.  Obviously the fundamentals are there with the Dollar and USA going in the toilet.  However, my radar starts to go up when “Everyone” is buying?  Sounds like it is time for a correction.

Now, as I said before, I jumped in with both feet the last time Gold hit its highs in March and got beat up and unfortunately sold for a big loss.  So, I'm a littlle gunshy.  I know that it might be nit-picky to worry about a few bucks here and there in the long run but is anyone worried about a big correction?

Also, it might be that “everyone” is not running to Gold.  It's not really being talked about much in the mainstream media, just in my circles who a lot are Gold Bugs.

Basically, I have about 50k that I'd like to put into physical PMs and I'm waiting for the right time.  I'm waiting as it goes up up up.  I just have that sinking feeling that when I pull the trigger it will drop back down hard again. 

Anyone else feel this way? 

dmanson said:

Riddle me this friends,

Right now, Gold has been exploding.  Silver looks poised to go too.  Right now EVERYONE is running to Gold.  Obviously the fundamentals are there with the Dollar and USA going in the toilet.  However, my radar starts to go up when “Everyone” is buying?  Sounds like it is time for a correction.

Now, as I said before, I jumped in with both feet the last time Gold hit its highs in March and got beat up and unfortunately sold for a big loss.  So, I'm a littlle gunshy.  I know that it might be nit-picky to worry about a few bucks here and there in the long run but is anyone worried about a big correction?

Also, it might be that “everyone” is not running to Gold.  It's not really being talked about much in the mainstream media, just in my circles who a lot are Gold Bugs.

Basically, I have about 50k that I'd like to put into physical PMs and I'm waiting for the right time.  I'm waiting as it goes up up up.  I just have that sinking feeling that when I pull the trigger it will drop back down hard again. 

Anyone else feel this way? 

You said that you wanted to put your money into physical Precious metals. I take it that you are talking about gold and silver bullions. Bear in mind that the premium dealers charge for gold bullions ranged anywhere from 3~5%. So if you do put your money into bullion gold, you must be prepared to hold it for a few months, the longer the better.

I would suggest that you do not put the whole $50K at once. Do it like me. I bought just 2 coins from a dealer (in person) just to get my feet wet. It was $850 an oz then. Then I bought another coin from the US mint for $975. After that, I bought 5 coins from an internet dealer for about $950 each. As my comfort level increase so did my volume. Most of these dealer provide free shipping anyway.

If the US$ goes down the toilet, as most of us believed it will, then there is no other way for gold to go but up. On the other hand, if the US$ recovers and the US economy recovers miraculously, then you and I can have more time to earn more and replenish our egg nest.

I agree with you that not everyone is running for gold. In fact most of my friends are still skeptical. The media is not talking about gold because if they do, it might cause a stampede to the door. I still think we are blessed that the US$ is slowly depreciating rather than a sudden drop. There is no guarantee that it won't.

So just go get your feet wet and buy a couple of gold coins from a local dealer. If you need more contacts, send me a pm.

All the best,

Will

I appreciate the insight.  I'm already an owner of some numismatic gold coins and silver bullion.  I pretty much know where to go to not get ripped off. 

I think here is the reason I want to own them.  I just don't want to invest anymore.  I am exhausted from watching the stock market and reading charts and trying to figure out where to put my money.  I lose most of the time and even when I win, I feel like it's too much effort and I could be spending that time just earning more money on the side.  So, I have my 401k and I contribute 5% every payday and my company matches.  I figure, let them worry about it.  I know they won't care about it like I do my own money, but at the same time, it's not fun for me anymore.

That being said, I'd rather just keep buying gold and silver.  I figure it's a long term win-win because if the $ goes in the toilet, I have a lot more buying power than a lot of other people and certainly won't have to stand in line for food or anything crazy like that.  If the $ goes up and Gold goes down, I still have my gold.  It isn't going anywhere.  My wife can't spend it…   I just know it's there in case credit and fiat money ever disappeared.  Call me a doomsdayer but I'd rather be prepared for the worst. 

I don't see myself getting rich investing in the market.  I make a nice 6 figure salary as does my wife and I think that if we just buy gold and silver when we have extra money, and then forget about it, we will be saving like our grandparents did, although they did it with dollars because they were backed by gold then. (sad to say that I have no faith in just saving my money and putting it in the bank)  If all else goes to hell, at least we have that. 

Now, I'm not opposed to an investment that is “as good as gold” such as a Perth Mint certificate or stock in a company that is so rock-solid that it isn't going anywhere, but I hate research.  I owned Real Estate and have had to short sell it due to being underwater, so I think I'm just plain TIRED of losing money.