Wednesday, May 9, 2007
Sunday, February 25, 2007
Yamana gold
A reader emailed me about AUY, asked me why not considering AUY.
- I think AUY has the rich valuation among intermediate gold producers;
- It's a new darling among wall street for gold stocks, which adds premiums to its price;
- Its executives did great job selling the company to analysts and public;
- 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.
- We're in a gold bull market, which started in 2002. The bull and bear cycles are usually lasting 20 years.
- Study shows silver has almost 100% correlation with gold, and silver outperforms gold in the gold bull market.
- 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.
Friday, February 23, 2007
Community notes
Welcome.
This blog will display reader's email comments and trade discussions.
We will focus on 4 main themes:
- Precious metals.
- Uranium stocks.
- Overall market trends.
- Speculative plays.
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