http://www.bloomberg.com/apps/news?pid=20601012&sid=aMwurj2nS2Bs&refer=commodities
My Opinion: As previously mentioned, shares of gold producing stocks will rise this year, reflecting the increased profit they can make. With gold trading above $900/oz and currencies of resource rich nations depreciating, this presents a unique profit maximization opportunity for many.
Firms like Kingsgate consolidated have announced sales may double this year compared to last, a feat that is unlikely to be seen in any other industry. Armed with huge profits from last year and the prospect of higher gold prices this year, Kingsgate has reinvested all its profits to double capacity at its Thai mine.
Investors are bullish on gold producing companies and have put their money where their mouths are. Shares in Kingsgate have gained 31% alone this year, beating the 15% decline on the benchmark Australian Index. The Sydney based firm plans to sell shares on the Thai market in the future.
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{ 5 comments… read them below or add one }
I’m reading this just as Kinross and Barrick hit their “Real Wealth” protective stops.
I’ve sold them as per your instructions, but I confess I suffered some doubts, as longer-term I take the argument for being “bullish” on gold.
Were we just a little early for “The Rally”? Is that what it was?
Larry Edelson Reply:
March 11th, 2009 at 4:59 pm
Yes, and far better to manage risk appropriately.
Hi Larry
I read your latest post big profits ahead.
Remember oil was at nearly $150 a barrel going over $200 a barrel and China was going to save the world economy well both myths have been smashed.
Now we again have the gold story $5000 oz in the future I believe going to happen would by now?
Nobody is looking at the monster in the room that is debt the world has lost over 50 trillion dollars in wealth and it’s not over yet, no government in the world can replace that amount of money.
Debtdeflation is yet to take hold on the world economy and big one is the black swan event in the future maybe shock and awe for all investors.
This writedown in debt has a long way to go.
When debtdeflation sets in gold will be sold down,but again could get a strong rally however debt will stop it in it’s tracks.
Stephen Johnston
Larry Edelson Reply:
April 6th, 2009 at 8:56 pm
On the surface, I agree. But always remember: If they can’t print money fast enough, they can forcibly change the value of money, as Roosevelt did in 1933.
Larry,
When you say, invest in GOLD, what do you mean specifically.
Physical gold, coins, EFTS, other?
Larry Edelson Reply:
April 8th, 2009 at 12:47 pm
Some gold bullion coins, yes. But mostly ETFs like GLD, top quality gold mining shares, or a mining ETF like GDX. See my Real Wealth Report for details.
Larry, I’m with you on this next major market move however we can’t ignore the weekly breakout on the $USD Point and figure charts, nor the the double top in gold…..thus the fact that alot of the push in gold was via a fear factor trade….It just seams like the perfect storm for gold.
http://stockcharts.com/def/servlet/SC.pnf?chart=$USD,PLTAWANRBOPADF1!3!!!2!20]&pref=G
Larry Edelson Reply:
April 20th, 2009 at 9:05 pm
I expect some short-term weakness in gold and some consolidation in the dollar. But all major trends I’ve spoken of remain intact.
I have read some articles about GLD not being safe & that they couldn’t possible substantiate actual gold for all the paper investments. Some readers of Weiss have brought this up and there have been no replies. However you wouldn’t be advising them if you thought they weren’t ok…..
Larry Edelson Reply:
April 27th, 2009 at 8:33 pm
Correct. While that risk of default exists, I consider it very small.