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« There’s Always a Silver Lining | Main | Current Trends for Producers of Precious Metals »
Monday
Mar092009

Gold-Prices.biz: Portfolio Update 10 March 2009




As we mentioned during the last update there was a danger that the DOW could close below 8000 and stay there, which according to some analysts signals a further fall to 6000, which has almost come to pass as the DOW now stands at 6547 having some bearing on the HUI which is down about 40 points to 275.

We also mentioned the effect of having a new president which we thought might generate a rally across the board, well the honeymoon period didn't do so well and its certainly over now. The de-leveraging and or general selling continue to pull cash out of the market which in turn adds to the strength of the US Dollar. We doubt that this can last and still expect the US dollar to u-turn and the precious metals sector to prosper
.

Our portfolio as been updated as follows:

Randgold Resources Limited (GOLD) On the 18th of June we bought Randgold Resources Limited for $37.65. This stock quickly rallied to $55.00 before being caught in the ensuing sector sell off to trade as low as $27.70, Randgold closed at $46.82 yesterday, so far so good.

Agnico Eagle Mines (AEM) we originally paid $30.88 and it now stands at $31.15. On 31st January 2008 we reduced our exposure to this stock and sold about 50% of our holding for an average price of $63.27, locking in a profit of 104.8%. On the 24th July 2008 we bought again at $59.17 doubling our position with the average cost now standing at $45.03. Agnico Eagle closed at $48.26 yesterday.

Kinross Gold (KGC) we originally acquired Kinross at $10.08, Kinross then went through a bit of a pull back so we signaled to our readers to “Add To Holdings” at those discounted levels of around $11.66. We also gave another ‘Kinross Gold BUY’ signal when we purchased more of this stock on the 20th August 2007 for $11.48. On 31st January 2008 we reduced our exposure to this stock when we sold about 50% of our holding for an average price of $21.96 locking in a profit of about 93.60%. On the 24th July 2008 we doubled our holding with a purchase at $18.28 giving us a new average purchase price of $14.50. Kinross closed on yesterday at $15.69, down a touch since the last update.

Silverado Gold Mines (SLGLF) we bought at $0.08 and it now stands at $0.0079. We are disappointed in the poor performance of this stock. The B.C. Securities Commission had issued a cease-trade order against the company, citing a host of filing deficiencies. On the 5th August 2008 this order was revoked the B.C. Securities Commission. However this stock continues to limp along but needs to make a really good discovery in order to boost the price.

Yamana Gold Incorporated (AUY: NYSE) we paid $9.37 on 27 September 2006, and we bought again at $12.89 on the 7th December 2007 and so our average price moved up to $11.13. On 31st January 2008 we reduced our exposure to this stock and sold about 50% of our holding for an average price of $16.50 locking in a profit of about 49.41%. Then on the 3rd April 2008 we bought our Yamana position back at $14.43 in expectation of a bounce, which arrived on The 23rd May 2008, and we sold for $16.00. On the 11th July 2008 we bought again at a price of $14.95 taking our average purchase price up to $13.04. This stock closed at $8.35 yesterday, up from $6.95 having traded as low $3.99 not so long ago.

High River Gold Mines: (HRG: TSX) We bought this at $2.49 and we increased our position in the company on December 7th, 2007 when we wrote; We strongly believe in the company’s long-term fundamentals, especially with rising gold prices. However it has been a victim of this recent sell off, which has dragged the price down to $0.155 yesterday. HRG is a small gold company and so its stock price is very volatile, but this pullback has been devastating. Production last year of 140,000 ounces, this year 280,000 ounces, next year 350,000 ounces going to an estimated 600,000 ounces by 2012. We will hold and watch for now.

Fronteer Developments Group (FRG) Fronteer was originally bought as both a uranium and gold play as FRG owns the lion’s share of Aurora Energy Resources making it a gold/uranium play. On the 24th September 2007 we sold 50% of this stock for an average price of $10.44, banking a profit of 122%. Fronteer is currently trading at US$2.17 up from US$1.51 recently, Our original purchase was made on the 15 July 2006 at around the $4.70 level, which is now showing a large lose. Hopefully FRG established a bottom at $1.25 and will continue to make progress.

Options Trades;

We have no options trades open at the moment, despite being tempted.
Trading decisions belong entirely to you as your circumstances are different from ours and we trade to suit our investment criteria and cash position.

Have a sparkling week and if you are on to a real winner do write and share it with our readership

Stay tuned for updates in this fast moving market…

If you are new to investment in the precious metals sector then you may wish to subscribe of our FREE newsletters regarding gold stocks, silver stocks and uranium stocks, just click on the links.

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Reader Comments (1)

So Todd do you still own Yamana? and have you bought more when it was real cheap?
Sincerely
Doug

March 10, 2009 | Unregistered CommenterDoug

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