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Thursday
Sep142006

CAMBIOR: Up 18% today

Cambior Inc to merge with Iamgold Corporation in a $3 billion merger making the new Iamgold Corporation the tenth largest gold producer in the world. As a Cambior shareholder is this good for me? Well Cambior has opened 18% up!
Wednesday
Sep132006

Spread betting: A gamble that failed

You just can’t trust the Australians can you? I go to sleep and overnight they let gold fall below my stop loss level!

No, can’t blame them. We got it wrong big time and lost the bet.

My son compounded matters by asking me what the difference was between gambling and investing? Not now Junior I’m still in shock!

Well my poor answer was that gambling is to take a risk or a chance in the hope of a better return and investing (sounds so noble) is to employ money into stocks in the hope of a better return. There, now both of us are confused.

In a way they are both types of investment, however the bet contained a stop loss to limit the damage but that also means that you have lost your stake. On the other hand an investment into stocks generally means that you do not have a stop loss and the stock can keep on falling, however you continue to be the rightful owner of the stock even though it is now trading at a lower price.

Gambling and investments and volatile so be careful and don’t go too mad even when it looks like a dead certainty.

Well I guess that it’s back to the drawing board.

13 September 2006
Tuesday
Sep122006

GOLD: A rough ride

GOLD: A rough ride

The last few days has seen the gold price drop down and penetrate gold’s 2oo DMA. So, where does gold go from here?

This sell off has surprised us a little as it looks like one or more of the central banks are doing the selling. We had thought that the banks would tend to be holders of gold rather than sellers when you take into consideration gold’s progress in the last few years. Britain sold at very bottom having announced to the entire world that it would hold a series of auctions to get rid of the family silverware. Something that my Grandmother would never do despite the many hard times she had to live through.

We understand that there is approximately 140 tonnes of gold that can still be sold before the 23rd September deadline from this years allowance. Will they? Won’t they?

We know that the German government wants to sell gold and use the funds for all sorts of schemes and the German treasury wants to hold to gold as an investment. Who will win this tug of war? Will we find out in the next couple of weeks! The French too are in a similar position.

It could be a rough time for gold. Our strategy is to sit it out. We still believe that gold is headed much, much higher and to sell our portfolio now would be like giving someone else an early Christmas present. It takes strength, courage and patients to sit on your hands during these periods especially when September is usually a good month for gold.

However, once we get September out of the way we reckon it will be onward and upward for gold.

We are NOT selling any gold mining stock and may even acquire a little more if and when we conclude that the selling is over done.

Relax and go and do what you do. Hit a few tennis balls, play with the kids, talk to your wife, talk to your pals wife, but generally chill; the smart investors are not selling at the moment.

12 September 2006
Friday
Sep082006

Kinross Gold Corp: Up 39.58%

KGCLogo2


We bought this gold stock on 23 June at $10.08; it is now at $14.07 despite the current shakeout. Hold for now and accumulate on dips that is our investment strategy for Kinross Gold Corp.

On the news front Verena Minerals Corporation has announced that it has entered into an agreement with Kinross Gold Corporation whereby Kinross will purchase 7,000,000 common shares at $0.30 per share for a cost of $2,100,000 to obtain 8.7% of Verena's common shares. Verena is a gold exploration company developing prospective projects in Brazil. Active in mineral exploration in Brazil for 10 years, Verena, through a number of its wholly owned Brazilian subsidiaries, controls properties covering 100,000 hectares of exploration concessions at Rio Grande do Norte, Tapajos and Tocantins states.

There is also a 6 minute piece on ROBtv on Wednesday 6th September 2006 at 8.50 am ET on The Street Power Breakfast programme with Tye Burt who is the president and CEO of Kinross Gold. We draw your attention to this because we think he is one of the best managers around and this interview does showcase his skills. Well worth catching on the web if you have not seen it.

Part of our investment criteria is to find well-managed companies and in our opinion we feel that we are in safe hands as this manager is top draw.


Verena Minerals Corp is listed as VML on the TSX-V exchange

Kinross trades as KGC on the NYSE

8th September 2006.
Thursday
Sep072006

Asset Management: Funds




Unfortunately we do not manage funds or assets for other people. We only invest our own funds and those of family and friends.

We are not financial advisors, asset managers or fund managers just individuals who invest money and write about it on our websites.

However we can discuss a few possibilities with you on the strict understanding that we are not recommending any of the companies below and have no financial connections with them.

For instance, we have mentioned John Emery of Sprott asset management in previous articles as someone that we have the utmost respect for, but that is only our opinion.

If however you are interested in options trading then you could try Fidelity, they also handle other types of trading, retirement funds, etc, although we have never done business with them.

If your need is for EFTs, bonds and mutual funds then there are people like Scottrade or Schwab. There are such financial instruments as Exchange Traded Notes managed by Ipath, but we don’t do any of these types of investments.

You can search the web or better still ask a few of your colleagues and see what they have to say, they might even have a personal experience or two to share which would be invaluable. Do try and look beyond the label and pick up the phone and talk to people, the response is usually very positive.

Good hunting.

07 September 2006

Wednesday
Sep062006

AGNICO EAGLE MINES LTD (AEM: NYSE) Up 30.18% since we bought in June



This Eagle really can soar so hang for a $100.0 treat! I know that we shouldn’t fall in love with a gold stock be we are really pleased with Agnico-Eagles progress.

We reported that we were buyers on 23 June 2006 at $30.88 and today it traded at $40.20 an increase in our investment of 30.18%, in less then 3 months.

We could take a short-term profit but that’s not for us. This gold stock is a genuine quality stock and must be a prime candidate for the acquisition hungry big guys.

We looked at 3 analysts reports today on Agnico, the first rated Agnico as outperform, the second analyst said it was a hold and the third guy had it down as a sell. So, there we are money well spent on financial newsletters have made things as clear as mud! Like our research, you can only use it as a guide, try to do your own due diligence and if others can help you with a little clarification here and there all the better.

Go Eagle Go! Prove that one day you will be changing hands at $100.0.

06 September 2006
Wednesday
Sep062006

GOLDEN STAR RESOURCES LTD (GSS: AMEX): Up 13.76% since we bought in July.

GSS has been through a rocky August (excuse the pun) but still continues to respond to higher gold prices.

We bought at $2.98 and as of today it is trading at $3.39, an increase in price of 13.76%, which in 2 months is satisfying for us. Our strategy of buying through out the quiet summer is certainly paying off handsomely for us. The price, in our opinion has been driven up by savvy investors doing the same as us, buying in anticipation of the fall rally.

We are sticking to our predictions for gold to hit the roof by January 2007. If you are not fully loaded then please be careful as there may not be too many more dips to buy, you may have to buy at the current prices. This does not worry us in the least, as the fireworks in gold mining stocks have not yet begun. This gold bull market will generate the biggest and best after dinner stories in the history of gossip.

06 September 2006
Wednesday
Sep062006

THE FREE GOLD PORTFOLIO: Update 05 September 2006

Despite being up by 12% in 2 months our portfolio contains 3 laggards and they are Silverado Gold Mines Limited, US Gold Corporation and Taseko Mines Limited.

As a strategy we are trying to invest in stocks that we believe have a good probability of doubling in the near term. Our portfolio has gained in value by 12% in only 2 months so we are fairly happy with the progress made to date. When attempting to achieve this sort of success we know that the additional risk will lead to some hairy times. For the 3 stocks mentioned above this is one of those periods. So lets look at them on an individual basis:

Silverado: (SLGLF)

This gold miner come green fuel company has stated that there will be an important announcement, hopefully this month that we bring good cheer to those of us who are holding and watching for the moment. Silverado is currently running a competition to win a gold nugget, which is all well and good, but it is no substitute for good news. We will continue to hold for the near term to give them time to deliver their good news. From a chartist standpoint this stock does appear to be consolidating around the 6-cent level so it may be a buying opportunity. As investors we have bought twice, at 8 cents and 6 cents so we will not be committing any more of our funds just yet.

U.S. Gold Corporation
: (USGL)

Rob McEwen, Chairman and CEO of U.S. Gold Corporation have just issued an open letter to all of his shareholders, which is very positive and we are pleased to read it. The stock also looks to have completed its nose drive down the charts so we are hopeful that this is turn around time. On the negative side we wonder if Rob who is the biggest individual share holder in Gold Corp might be a little distracted by Gold Corps takeover of Glamis. For now we will continue to hold.

Taseko Mines Limited: (TGB)

Apart from the results hassle that we have already covered we are confident that this copper stock is destined to go a lot higher. Again we will continue to hold.


The only FREE GOLD PORTFOLIO on the web that we are aware of.

If you have any comments please fire them in as your comments will be of benefit to our readership.

06 September 2006
Tuesday
Sep052006

GOLD CORP: The Glamis takeover, don’t bank on it.

Market Consolidation for gold mining companies has been coming for some time and this type of takeover is to be expected, but will it happen?

If you are a stockholder of Glamis then its champagne time, but if you are a stockholder in Gold Corp (GG) then the day does not look so bright.

This move has been described as one expensive company buying another expensive company. We could say that it is early days for this transaction and we might get a Barrick or a Newmont joining the fray with yet a bigger offer. My money says that won’t happen and if it doesn’t we have to question the price being paid by Gold Corp.

If I were a holder of Gold Corp then I would want to be able to vote on this move and not be dictated to by board. On the other hand if we owned Glamis we would cash in and run with our glamorous profits while they are there to be taken.

Time will reveal all to us.

On the subject of takeovers we think that we will see a lot more action and we expect at least two of our stocks to be in the thick of it. They are Agnico-Eagle Mines and Kinross Gold Mines. If you have them in your portfolio you might want to hang on for a piece of hostile Merger and Acquisition activity coming to a screen near you shortly.

05 September 2006
Tuesday
Sep052006

SPREAD BETTING: A gamble on Gold

Our research into gold, gold price movements, gold charts, and gold fundamentals sometimes uncovers an opportunity for a small bet on gold. Yesterday produced one such opportunity to gamble on gold.

You must bear in mind that this is not an investment, it is straight out gambling, and you should treat it as you would a racehorse. Anything can happen to prevent your golden horse from winning.

As it was Labour Day and everyone was asleep we decided to place the following bet:

Using IG Index in the UK we placed our money through a ‘Controlled Risk Bet’ i.e. a bet of the futures market but limiting our loses should things go wrong.

We placed £10 per point on December gold with a 50-point limit. The maximum that we can lose is £10.0 x 50 = £500. So, the downside is that we could lose the lot if gold doesn’t perform.

The spot price of gold yesterday was $626 and the December price was $636, so we need to be above $636 by the last trading day, which is the Friday of the 3rd week in November 2006. Don’t think that a bet on December gold means expiry in December it doesn’t. Our 50-point limit means that if gold falls to $586 then we will be stopped out.

Our strategy is close the bet when gold gains $50 to reach $686. Yes, of course we believe that is achievable.

Our strategy is to try and double our stake on this one.

As usual don’t go too mad on it, as we are predicting a volatile period between now and January 2007 for gold.

05 September 2006