Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Gold Up After U.S. Debt Limit Raised-- Is It Time To Buy ?
From the "Doesn't anyone listen to me! "file From Seeking Alpha Sprott: WGC gold supply stats "misrepresent reality" • 12:38 PM
In an open letter to the World Gold Council, precious metals investor Eric Sprott (PHYS, PSLV) excoriates the group for abetting the decline in gold prices with faulty statistics, mostly as it relates to Asia. The WGC pegs gold production at a robust 2.8K tons this year, but this includes gold mined in China and Russia which is used solely for domestic demand, says Sprott. Adjusting for this, Sprott sees total mine supply this year of 2.14K tons. Making adjustments to better represent consumption from emerging markets, Sprott sees annual demand of 5.2K tons, and thus supply being about 3K tons in shortfall. "I urge the leaders of the WGC, for the benefit of their own members, to improve the quality of their data and find alternative sources than the GFMS, which paints a misleading picture of the real demand for gold. This lack of quality information has certainly been one of the driving factors behind the lack of investors’ confidence towards gold as an investment." Gold ETFs: GLD, IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDI.
From Seeking Alpha 2:19 PM GG Canaccord bullish on top gold miners, says problems already priced in Canaccord Genuity believes top gold and silver miners have priced in the challenging environment and sees the group returning 22%, as it initiates coverage of Goldcorp (GG +4.2%), Tahoe Resources (TAHO +3.2%), IAMGOLD (IAG +5.9%), Silver Wheaton (SLW +3.8%) and Yamana Gold (AUY +2.3%) with Buy ratings.The firm views GG as the quality leader in the group with a discount valuation and numerous potential re-rating catalysts.In predicting ~40% upside in TAHO shares, the firm notes the miner is commissioning its best-in-class Escobal silver project and all indications point to a smooth ramp-up and positive risk re-rating.Eldorado Gold (EGO), Agnico Eagle Mines (AEM), Kinross Gold (KGC) and Barrick Gold (ABX) are given Hold ratings.ETFs: GDX, GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING.
Just a suggestion, but why not allocate something to precious metals on a permanent basis? Consider, perhaps, a 3% position in something like CEF. This closed-end fund is treated like a mutual fund for capital gains purposes, unlike GLD that is treated like a collectible and thus has higher taxes associated with it. If the position gets above 5%, sell back. If it drops to 1-2%, buy more. Use the holding as a hedge against government stupidity or black-swan events.
Comments
From Seeking Alpha
Sprott: WGC gold supply stats "misrepresent reality" • 12:38 PM
In an open letter to the World Gold Council, precious metals investor Eric Sprott (PHYS, PSLV) excoriates the group for abetting the decline in gold prices with faulty statistics, mostly as it relates to Asia.
The WGC pegs gold production at a robust 2.8K tons this year, but this includes gold mined in China and Russia which is used solely for domestic demand, says Sprott. Adjusting for this, Sprott sees total mine supply this year of 2.14K tons. Making adjustments to better represent consumption from emerging markets, Sprott sees annual demand of 5.2K tons, and thus supply being about 3K tons in shortfall.
"I urge the leaders of the WGC, for the benefit of their own members, to improve the quality of their data and find alternative sources than the GFMS, which paints a misleading picture of the real demand for gold. This lack of quality information has certainly been one of the driving factors behind the lack of investors’ confidence towards gold as an investment."
Gold ETFs: GLD, IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDI.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2013/10/23/golds-weak-2013-a-result-of-the-fed-etf-selling-and-bad-statistics/tab/print/
GG
Canaccord bullish on top gold miners, says problems already priced in
Canaccord Genuity believes top gold and silver miners have priced in the challenging environment and sees the group returning 22%, as it initiates coverage of Goldcorp (GG +4.2%), Tahoe Resources (TAHO +3.2%), IAMGOLD (IAG +5.9%), Silver Wheaton (SLW +3.8%) and Yamana Gold (AUY +2.3%) with Buy ratings.The firm views GG as the quality leader in the group with a discount valuation and numerous potential re-rating catalysts.In predicting ~40% upside in TAHO shares, the firm notes the miner is commissioning its best-in-class Escobal silver project and all indications point to a smooth ramp-up and positive risk re-rating.Eldorado Gold (EGO), Agnico Eagle Mines (AEM), Kinross Gold (KGC) and Barrick Gold (ABX) are given Hold ratings.ETFs: GDX, GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING.