A quick look at the gold bugs index chart and we can see that gold stocks have been decimated over the last few months. The technical indicators of the RSI, MACD and STO do not tell us very much as this climate of de-leveraging continues regardless of the quality of the stock being sold in order to generate cash (read more…)

“The global economy is currently experiencing one of the most unsettled times in recent history. With the severe correction in the capital markets, and illiquidity in the credit markets, a sociopolitical and economic shift of incredible proportions is taking place,”

“In the context of this environment, successful companies will be the ones that are able to maintain flexibility, continue to generate cash flow, preserve capital and maximize cash balances. At Yamana, our goal has consistently been to complement sustainable production growth with increases in cash flow, always with an eye toward preservation of cash.” said Peter Marrone, Chairman and CEO of Yamana Gold (read more…)

What a day for the fans of Kinross Gold Corporation improving 19.33% for gain of $2.80, on a lower than average volume of 8.57 million shares traded as gold shot out of the blocks and put on $42.00 to trade at $764.00 as we write (read more…)

The above chart shows the status and the progress of the January 2009 Call options that we purchased on 24 July 2008 for $2.50 per contract. We now need the stock price to rally to the $20.00 level to get us back into positive territory (read more…)

The above chart shows the status and the progress of the January 2009 Call options that we purchased on 24 July 2008. We purchased these contracts, which consist of one hundred shares per contract for $2.50 per contract and they have suffered in recent carnage when gold was battered. However gold has made a recovery and is trading at $877.20 as we write. These options have started on the road to recovery as we can see from the chart (read more…)

We have not managed to update this portfolio since 22 June 2008 and we know it has been pulverised since then, largely due to the price of oil retreating and the US Dollar rallying to challenge its old highs.

A quick look at gold’s chart and we can see that a $200/oz drop in gold prices has dealt a hammer blow to the gold producing stocks. The technical indicators of the RSI, MACD and STO remain severely oversold so hopefully this sell off has now run its course (read more…)

Agnico-Eagle Mines Ltd (AEM) Kinross Gold Corporation (KGC) and Yamana Gold Incorporated (AUY) all have similar chart patterns in that the MACD has recently experienced a golden crossover.

If we look at the chart above of Agnico-Eagle we can see that (read more…)

Gold made a bottom at $651 on August 16th 2007 before rallying to over $1025 by March 2008. The anniversary of that low is less than a week away and we suspect history is going to repeat itself as gold prepares for anther tremendous rally (read more…)

On the 24th July 2008 we made a purchase of the JAN09 Call Options at a strike price of $20.00, paying $2.50 for the contracts in Kinross Gold Corporation (KGC)

This may sound familiar to you as we bought these very same call options in KGC on the 16th June 2008 paying $2.68 per contract and sold them on the 28th June 2008 for $5.30 per contract generating a 100% profit in two weeks. We have re-purchased these call options because we think that the sell off in Kinross has been over done (read more…)

On the 24th July 2008 we purchased more stock in Kinross Gold Corporation (KGC) for an average price of US$18.28, doubling our position in the stock.

The big news is that Kinross have tabled a $1.2-billion bid for Aurelian Resources Incorporated (read more…)