by Travis Johnson, Stock Gumshoe | March 7, 2016 12:31 pm
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Agree Travis
$ABX #UP 85% !
$JNUG $NUGT #UP 400% to $100 #splits of 5/10 to 1 #SOON http://www.barchart.com/quotes/etf/JNUG
Hmm. Yesterday I bought Silver Standard in the morning CET. With limit. Later on the day i checked if my order was filled. Got it. Then I checked price on Google Finance. Lo and behold, down 15% om news that it bought Claude Resources. Clearly Mr. Market didn’t like that deal. Damn.
I’m in the same boat but on the CRJ side of the deal. However I’ll take the deal which should give me a 25-30% premium. I’ll more than likely hold on to the SSO.TO shares in hope that the silver markets take off
I was initially interested based on Neumeyer. However, due diligence indicated that highly respected geologists and mining analysts generally consider these properties to be very uneconomic and not likely to be mined unless gold sustains much, much higher prices. They do not like First Mining’s business model. I invest in a lot of juniors so I am not adverse to the significant speculation required for the junior space. There are much better opportunities that work at gold prices below current prices.
Thanks for the input — yes, I don’t think this is a particularly appealing investment if you think gold prices will stay in this neighborhood. This is more of a long term bet that we’ll have another eventual upturn in the cycle that rebuilds interest in exploration again.
I expect there are lots of better juniors, though I try not to dig too deep into researching little teensy miners for fear of never having time to do anything else (and, of course, I have no particular geology expertise). Feel free to share other juniors that interest you, I know a lot of our readers are always interested in more ideas.
Not sure this can be considered a Junior, but I like Lundin Gold and the Fruta del Norte deposit they are developing. I have read a lot about the Lundins and respect their work. I am a long term holder. This will be a wild ride up and down. Hang on! I am long: FNV, SLW, OR.TO, LUG.TO, FSM, DNG.TO, PLG.TO, BAR.TO, ATC.V, and various others.
I’m a retired banker and what I see in the current global economies is nothing but big troubles heading our way. To be blunt, what central bankers are proposing is the most bizarre economical thinking I’ve ever seen. The current rise in gold is about interest rates. While ZIRP is good for precious metals, NIRP has been and will continue to be even better, as more country’s implement this last ditch effort to stimulate their economies. I’ve trade gold for many years and sometimes is acts like a commodity, other times such as the last 3 months, it acts like a currency. When gold is a commodity it will move opposite to the USD. When it’s a currency it will rise with the USD. While gold does not pay a dividend, neither does zero or negative interest rates. What we are currently seeing is mostly fear trades and as the central banks lose control of their respective economies, all hell will break lose. That should be very good for precious metals. There will be a correction of the magnitude that most of us have never experienced and as history has shown owning gold at these times can be very rewarding.
Good perspective, alberta doc — thanks.
I like First Mining Finance and have been picking up shares since the new year. The company’s growth will require continued depressed metal prices for a while so it can buy out more mining companies at a good price. Right now you can buy it for about 2 cents less a share by buying shares of the recently taken over Clifton Star Resources Shares CFO.V and they will each become an FF.V share after April. In researching First Mining Finance I came across a similar type of company called Auryn Resources AUG.V with about double the market cap. Any thoughts about Auryn?
I like Endeavour Mining Corporation, EDV.to/EDVMF +.22 to C$10.50
Endeavour used to be a finance company for miners but over the past several years has assembled a nice stable of 5 producing mines in West Africa. Their finance expertise plus demonstrated ability to build and operate mines within budget is a big plus. Endeavour is undervalued compared to similar sized gold miners, producing over 500K oz of gold last year and moving towards 900K over the next two years. They announced an acquisition recently of True Gold, which is about to start commercial production at a new mine. This will be a low cost mine and help Endeavour continue to reduce operating expenses. During the acquisition phase, Endeavour was criticized for too much debt so has been aggressively reducing debt. Should be close to financing their next mine buildout at Hounde with minimal financing needs due to cash on hand plus major shareholder who will invest cash to maintain equity position after TGM acquisition. .
I like producers because so many junior explorers never produce anything other than paper prospectuses. Here is their latest presentation:
https://endeavourmining.com/assets/docs/ppt/160304-presentation-q4-financial-results-true-gold-v-final.pdf
No doubt, the precious metals will eventually surge in value.
But not yet! They have not bottomed out!
Th e reason for the present jump up is NIRP. That fear is overdone!
Terror, Trump, Wife Spats, and Gold: http://email.angelnexus.com/hostedemail/email.htm?CID=33684141243&ch=0CB7B66430D65B3341C877BFA058ADC4&h=387d54e7b0dc563f3e102331cc7869bb&ei=WKPISMCsN
I was out of the country. So, is it too late to get in on First Mining and JNUG? A lot happened in a month.