Investing

Gold/silver and miners...time to buy?

  • Last Updated:
  • Oct 11th, 2020 8:13 am
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Deal Addict
Aug 17, 2008
4294 posts
3435 upvotes
^ Fell a penny shy yesterday and didn't pulled the trigger today.

BMO research seems reasonable given that the biggest CB buyers may need to sell to prop up their economies.

BMO says silver could outperform gold as central banks may scale back purchases
https://www.spglobal.com/marketintellig ... s-57915052

The Bank of Montreal said silver could outperform gold over the next two years, particularly if governments move toward fiscal spending on fifth-generation wireless communications technologies, or 5G, and solar technology, while central banks may slow gold purchases a little.
Deal Fanatic
User avatar
Sep 21, 2007
5103 posts
487 upvotes
Winnipeg
I held JNUG for 2 weeks... when it was dipping. I sold it for a nice gain at $7.90 on Monday and quickly bought into JDST for $1.20.. I can't believe I'm holding onto this junk still. I might sell Monday before the RS..
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
Jr. Member
Jun 10, 2015
142 posts
41 upvotes
Canada
I thought this would be the message board to ask this question as many gold mining firms are based out of Canada. Do you see a multi-year gold bull run going forward or has the recent surge in prices run its course?

Many miners are claiming we are at "peak gold" which will boost prices. Couple this theory with the increase in government debt and printing of money by the central banks and we could see a favourable gold investment climate for many years. These actions devalue currencies.

Also, thoughts on mining firms in general?
Deal Addict
User avatar
May 24, 2008
3219 posts
1115 upvotes
Toronto
I've been a gold bug for years, and I just have a general answer to this. You always try to buy things that are undervalued, close to a bottom and sell when it's getting overvalued and close to a top.

I still think gold has a ways to go here, but I've been a seller the last couple of weeks. Gold has been in a bull market for close to two years. Time to look elsewhere.
4 years of pain for Ontario...
Deal Fanatic
May 22, 2003
5076 posts
2294 upvotes
Vancouver
Which gold ETFs would you guys recommend - looking specifically for gold and not miners. HGY?
Deal Addict
Aug 17, 2008
4294 posts
3435 upvotes
Read the full analysis, not just the preface.

Why Gold is Not the Ideal Tool for Capital Preservation
4/24/2020
https://www.caldanpartners.com/blog/why ... eservation

"Capital preservation assets provide the lowest volatility possible while sacrificing upside potential when times are good. We find that while gold can be additive to portfolio returns, its cost of high volatility does not make it the best asset class for capital preservation. Instead, we prefer income generating asset classes with more stable return and volatility profiles such as Treasuries and G6 sovereign bonds."

"Just as growth comes with a cost, so does protection."
"Gold can have high volatility coupled with years of double-digit losses."
Deal Addict
Aug 17, 2008
4294 posts
3435 upvotes
Picked up YRI on a ER punt.

Act FCF < Exp (about half)
Act Adj EPS > Consensus & the high estimate
Production > Plan
Costs < Plan
Deal Addict
Aug 17, 2008
4294 posts
3435 upvotes
Just sold my YRI at $8.28.

Update (Jul29)
Back in YRI at $8.87
Jr. Member
Oct 10, 2009
119 posts
49 upvotes
Toronto
Junior gold and silver miners have been on an absolute tear recently ... some 10x, and it's hard to find anything that has gone down within the past couple of month.
Member
Jul 10, 2008
267 posts
18 upvotes
North York
I never really understood Gold....
I'm assuming economy poor, and deaths in the US currently, driving the price 2000/oz +
However, back in March/April, why didn't Gold, hell, even bitcoin, shoot up to the stratosphere ??
Perhaps the market was way to unstable/uncertain, people rather just hold cash, even though
Gold is considered a safe haven? Thanks
Deal Addict
Dec 3, 2014
1907 posts
1087 upvotes
Ontario
xcentric wrote: I never really understood Gold....
I'm assuming economy poor, and deaths in the US currently, driving the price 2000/oz +
However, back in March/April, why didn't Gold, hell, even bitcoin, shoot up to the stratosphere ??
Perhaps the market was way to unstable/uncertain, people rather just hold cash, even though
Gold is considered a safe haven? Thanks
Gold is being driven by inflation. It was when the announcement of money printing came out that gold reversed its decline with market in March. However I say this with benefit of hindsight as I was also a bit surprised by temporary decline in gold in March.

Although gold’s questionable status as a safe haven may be concerning, I think the development is more a positive as government is committed to avoiding a worst case scenario. This reduced the conceptual value of all safe haven assets, but the central governments of the world at the same time assured a future of inflation and likely even stagflation, ironically providing gold with a more substantial and sustainable basis for rapid appreciation.
Sr. Member
Aug 16, 2015
665 posts
193 upvotes
MrMom wrote: Read the full analysis, not just the preface.

Why Gold is Not the Ideal Tool for Capital Preservation
4/24/2020
https://www.caldanpartners.com/blog/why ... eservation

"Capital preservation assets provide the lowest volatility possible while sacrificing upside potential when times are good. We find that while gold can be additive to portfolio returns, its cost of high volatility does not make it the best asset class for capital preservation. Instead, we prefer income generating asset classes with more stable return and volatility profiles such as Treasuries and G6 sovereign bonds."

"Just as growth comes with a cost, so does protection."
"Gold can have high volatility coupled with years of double-digit losses."
agreed. gdx went to 16 in march. how is that a safe haven?

fed funded gamblers are buying gold now.

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