Yamana gold

A reader emailed me about AUY, asked me why not considering AUY.

1. I think AUY has the rich valuation among intermediate gold producers;
2. It's a new darling among wall street for gold stocks, which adds premiums to its price;
3. Its executives did great job selling the company to analysts and public;
4. Cramer recommended AUY, another sign not to buy AUY.

All things considered, I like IAG, AEM, KGC better than AUY, from valuation perspective. This doesn't mean AUY price won't rise.

Gold vs. Silver

A recent email asked me about gold vs silver.

Q: what do you like silver better than gold?

A: There are three factors to consider which one is better.

1. We're in a gold bull market, which started in 2002. The bull and bear cycles are usually lasting 20 years.
2. Study shows silver has almost 100% correlation with gold, and silver outperforms gold in the gold bull market.
3. The time gold outperforms silver usually happens when there is a great turmoil in the world and financial markets. Gold is the only haven buy.

I think silver will outperform gold in the near future.

Community notes

Welcome.

This blog will display reader's email comments and trade discussions.

We will focus on 4 main themes:

1. Precious metals.
2. Uranium stocks.
3. Overall market trends.
4. Speculative plays.