As a I write this, the price of gold is $1502.90 and up another $8.20 this morning. Keep in mind that's in U.S. dollars. $1502 U.S. is equivalent to $1430 Canadian dollars.
This is why Canadian gold stocks haven't followed through with this recent surge in the price of gold. The further our dollar climbs against the U.S.$, the less our mines will receive for each ounce mined.
Add to this, increasing energy and oil costs and profits will not be a rosey as some are led to believe.
If gold were to correct here, and the Canadian dollar continue climbing, there will be downward pressure on all precious metal stocks. Caution is warranted.
Your portfolio should include a basket of precious mining stocks, but for protection against runaway inflation and erosion of currencies, you should also hold physical bullion.
At some point, U.S. stocks will be more attractive to hold than the paper currency, because the stocks/indexes will also reflect massive inflation. In other words, because of the erosion of your purchasing power by holding the U.S. dollar, the stock themselves will skyrocket and be a place of shelter.
Anyway, let's see what happens today now that gold as broken through a major point of resistance. If this continues, the stocks should follow and start a new leg upwards.
Good luck!
Wednesday, April 20, 2011
Monday, April 18, 2011
TheRecord - Governor General second on sunshine list; earned more...
TheRecord - Governor General second on sunshine list; earned more... Top guy paid the most was Tom Mitchell, CEO of Ontario Power Generation - 1.3 in 2010. And we're paying the debt on hydro? We are definitely getting screwed big time! Hydro One CEO Laura Formusa was paid $955,000 & there's 11,000 workers at Hydro One and OPG on the sunshine list!!!
Friday, April 15, 2011
The Real Housewives of Wallstreet
Why is the Federal Reserve forking over $220 million in bailout money to the wives of two Morgan Stanley bigwigs?
http://www.rollingstone.com/politics/news/the-real-housewives-of-wall-street-look-whos-cashing-in-on-the-bailout-20110411
Excerpt:
Now, following an act of Congress that has forced the Fed to open its books from the bailout era, this unofficial budget is for the first time becoming at least partially a matter of public record. Staffers in the Senate and the House, whose queries about Fed spending have been rebuffed for nearly a century, are now poring over 21,000 transactions and discovering a host of outrages and lunacies in the "other" budget.
http://www.rollingstone.com/politics/news/the-real-housewives-of-wall-street-look-whos-cashing-in-on-the-bailout-20110411
Excerpt:
Now, following an act of Congress that has forced the Fed to open its books from the bailout era, this unofficial budget is for the first time becoming at least partially a matter of public record. Staffers in the Senate and the House, whose queries about Fed spending have been rebuffed for nearly a century, are now poring over 21,000 transactions and discovering a host of outrages and lunacies in the "other" budget.
Wednesday, April 13, 2011
Tuesday, April 12, 2011
Bravo, Canada - WSJ commentary
Bravo, Canada
A U.N. snub is a badge of honour
http://online.wsj.com/article/SB10001424052702304410504575560421374193814.html
Life must be very good in Canada, or at least dull, judging by the domestic reaction to its failed bid last week for a temporary seat on the U.N. Security Council. Listen to the yowls in the papers north of the border: "A nation reeling," "humiliating defeat," "a rebuke from the global community," "tarnishes our reputation," "a slap in the face."
We say: Way to go. Canada seems to have annoyed a sufficient number of Third World dictators and liberally pious Westerners to come up short in a secret General Assembly ballot. The sins committed by Stephen Harper's Conservative government include staunch support for Israel, skepticism about cap-and-trade global warming schemes, and long-standing commitment to the Afghan war. Americans would be so lucky to get a leader as steadfast on those issues as the Canadian Prime Minister.
The United Arab Emirates took credit for putting together a group of anti-Canadian Arab and Islamic states to stop the bid for the two-year rotating chair. The UAE also has a beef with Ottawa over landing rights for Emirates Airlines going into Canada.
The U.S. role here is also embarrassing—to the U.S. Richard Grenell, a former senior official at the U.S. Mission to the U.N., reported last week that America's U.N. ambassador, Susan Rice, refused to campaign on Canada's behalf. Mr. Harper's politics are not hers, and Liberal opposition leader and Obama political soulmate, Michael Ignatieff, declared last month that Canada under Mr. Harper didn't deserve to get one of the 10 temporary seats.
The farcical nature of all this was made clear when the Canadians lost to Portugal, which—with all due respect to the memory of Vasco da Gama—is no global titan. This small and economically hobbled Iberian country will now hold one of two temporary spots reserved for Western bloc states. Germany was assured the other.
Canada, on the other hand, is a serious country. Under Mr. Harper's leadership, Canada has avoided the worst of the global recession and emerged with a vibrant banking system and strong currency (now trading near parity to the U.S. dollar). The courage of its soldiers in Afghanistan, and in other missions, is testament to a nation that honors its commitments. Canadians should wear the U.N. snub as a badge of honor.
A U.N. snub is a badge of honour
http://online.wsj.com/article/SB10001424052702304410504575560421374193814.html
Life must be very good in Canada, or at least dull, judging by the domestic reaction to its failed bid last week for a temporary seat on the U.N. Security Council. Listen to the yowls in the papers north of the border: "A nation reeling," "humiliating defeat," "a rebuke from the global community," "tarnishes our reputation," "a slap in the face."
We say: Way to go. Canada seems to have annoyed a sufficient number of Third World dictators and liberally pious Westerners to come up short in a secret General Assembly ballot. The sins committed by Stephen Harper's Conservative government include staunch support for Israel, skepticism about cap-and-trade global warming schemes, and long-standing commitment to the Afghan war. Americans would be so lucky to get a leader as steadfast on those issues as the Canadian Prime Minister.
The United Arab Emirates took credit for putting together a group of anti-Canadian Arab and Islamic states to stop the bid for the two-year rotating chair. The UAE also has a beef with Ottawa over landing rights for Emirates Airlines going into Canada.
The U.S. role here is also embarrassing—to the U.S. Richard Grenell, a former senior official at the U.S. Mission to the U.N., reported last week that America's U.N. ambassador, Susan Rice, refused to campaign on Canada's behalf. Mr. Harper's politics are not hers, and Liberal opposition leader and Obama political soulmate, Michael Ignatieff, declared last month that Canada under Mr. Harper didn't deserve to get one of the 10 temporary seats.
The farcical nature of all this was made clear when the Canadians lost to Portugal, which—with all due respect to the memory of Vasco da Gama—is no global titan. This small and economically hobbled Iberian country will now hold one of two temporary spots reserved for Western bloc states. Germany was assured the other.
Canada, on the other hand, is a serious country. Under Mr. Harper's leadership, Canada has avoided the worst of the global recession and emerged with a vibrant banking system and strong currency (now trading near parity to the U.S. dollar). The courage of its soldiers in Afghanistan, and in other missions, is testament to a nation that honors its commitments. Canadians should wear the U.N. snub as a badge of honor.
Monday, April 11, 2011
Sunday, April 10, 2011
Saturday, April 9, 2011
Gold and the markets
It's been quite a week for the precious metal, closing at $1474.69. I was expecting a larger pullback in commodities, as were many market commentators, but it didn't happen. Just proves that trying to "forecast" prior to any move in the market is dangerous, and usually wrong especially if that prediction is popular. In other words, when everyone expects something the market will usually do the opposite.
The U.S. markets have also proved to be resilient and not showing any major pullback. I think the U.S. dollar is becoming more worthless, and in the face of that, even holding an equity has more value that holding the paper itself. What we're seeing is the beginnings of major inflation, and it will hit the markets too. This means that even stocks and the general indexes will continue their move upwards, as they too will be price adjusted for inflation.
So what to do? I continue to hold core holdings in gold stocks, as well as some of the physical metal. Silver looks like it's headed to $50 an ounce, and gold might hit $1500 next week. Will we see a pullback? We might, but I'll use that opportunity to add to current positions.
Stocks that I particularly like and am holding. (closing prices as of Friday, April 8, 2011)
CRJ - Claude Resources - $2.47
SGR - San Gold - $2.92
ORM - Oremex - .375
K - Kinross - $15.90
NGD - New Gold - $11.00
Stocks I like, but don't currently own.
BRD - Brigus Gold - $1.59
BSX - Belo Sun Mining - $1.45
YRI - Yamana - $12.74
OSK - Osisko - $13.34
RVS - Riverstone Resources - $1.02
LEX - Lexam VG Gold - .94
The U.S. markets have also proved to be resilient and not showing any major pullback. I think the U.S. dollar is becoming more worthless, and in the face of that, even holding an equity has more value that holding the paper itself. What we're seeing is the beginnings of major inflation, and it will hit the markets too. This means that even stocks and the general indexes will continue their move upwards, as they too will be price adjusted for inflation.
So what to do? I continue to hold core holdings in gold stocks, as well as some of the physical metal. Silver looks like it's headed to $50 an ounce, and gold might hit $1500 next week. Will we see a pullback? We might, but I'll use that opportunity to add to current positions.
Stocks that I particularly like and am holding. (closing prices as of Friday, April 8, 2011)
CRJ - Claude Resources - $2.47
SGR - San Gold - $2.92
ORM - Oremex - .375
K - Kinross - $15.90
NGD - New Gold - $11.00
Stocks I like, but don't currently own.
BRD - Brigus Gold - $1.59
BSX - Belo Sun Mining - $1.45
YRI - Yamana - $12.74
OSK - Osisko - $13.34
RVS - Riverstone Resources - $1.02
LEX - Lexam VG Gold - .94
Thursday, April 7, 2011
Murgor Resources - News
Murgor Released news today with first results from its phase 1 drilling at the Golden Arrow Mine in Timmins Ontario. I can't figure out why the market isn't more excited about this particular company and it's been a real dog for years. Something doesn't sit right, and yet these results are good, IMO.
MURGOR NEWS RELEASE
Best results from holes A11-09 to A11-12 are shown below:
MURGOR NEWS RELEASE
Best results from holes A11-09 to A11-12 are shown below:
Click the above link to see full press release.
Please visit their website for more information on this property, and others that they have in their portfolio.
In addition to the Golden Arrow property in Timmins they have the following:
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