Gold is overbought in our opinion and we think the yellow metal is in for a short term correction.

The coming drop in gold prices will drag gold stocks down with it and so we are taking some profits and selling some gold shares (read more…)

The Federal Reserves latest rate cut and some timely buying sent the DOW up 200 points initially, however this jump soon fizzled out as the DOW returned to negative territory by the end of the day. Gold had its moment in the sun too! It also jumped to around $940/oz, however as the Sydney and Hong Kong stock exchanges open we see that gold has drifted back to trade at around $924/oz.

We have said for a long time that (read more…)

On the front page of The New Zealand Herald’s Business section today, 30th January 2008 is a wonderful picture of some gold bars above an article entitled ‘Precious Metals Hit Record Highs‘.

The article goes on to say “Fears of Recession See Investors Opting for the Safety of Gold, Platinum” with the primary causes being named as the dollar weakness and the power crises in major producer South Africa (read more…)

In the Federal Reserve meeting this week, we will almost certainly see another interest rate cut of at least 25 basis points, with the more likely option being a cut of 50 basis points. This will give stocks across the board another boost and deal another blow to the US dollar.

The majority of investors know that Ben Bernanke intends to continue to cut rates as much as he can to try and prevent a recession in America. However what is not known yet is just how far the Fed will go in their rate cutting policy.

Are rates heading to zero? Is Bernanke going to (read more…)

The three quarter point rate cut arrived like an unexpected bonus payment sending the markets into raptures of approval and reversing an ever steepening down trend. It reminds us of the hit song by The Who; Don’t Get Fooled Again (read more…)

As we said in our recent portfolio update, we are not recommending any buying at these levels as it is our opinion that gold and gold stocks are overbought and due for a correction.

Gold prices have not yet started to drop, but (read more…)

As the main members of the team have been on the road for the last three months, travelling over the UK, America, and to Fiji before going down under, we have not been able to do our monthly portfolio update since October. Much has changed since then and so we have updated our portfolio to show where we stand on the various gold stocks that we follow (read more…)

The sub-prime fiasco rolls on reaching the shores of Australia and New Zealand as reported in The New Zealand Herald over the last few days.

On Friday the 11th January 2008 an article by Adam Bennett in the Business section of The New Zealand Herald revealed that a number of banks including the Commonwealth Bank of Australia, National Australia Bank, ANZ and Westpac have a combined exposure of $850 million to the financially wounded Countrywide Financial (read more…)

“You should never fall in love with a stock but this is one of our favourites. We first bought this stock in 1982, and have traded it ever since then.”

We said that when we first started this website and newsletter, over a year and a half ago and it still applies to this day. Agnico Eagle continues to be one of the best run mid cap gold stocks, although (read more…)

Not everyone has a comprehensive understanding of how the economy works and that is usually fine as not everyone needs to have a deep understanding. However one would hope that the Prime Minister of a country, especially one with a decade as the Chancellor of the Exchequer, would have some idea how the economy and the world of finance works.

It is seriously worrying how little the British Prime Minister Gordon Brown understands about the financial system (read more…)