Hi all, although I own a reasonable amount of bullion (gold & silver) I have little exposure to the miners - other than Arian Silver in the UK.
I believe that as the secular bull market in precious metals reaches it peak sometime this decade that the miners (particularly gold) will see significant upwards moves. Santa references the huge increases in stock prices at the end of the last bull market in 1980 and has recently been pointing out the great value that the stocks currently represent.
There are clearly a lot of very experienced investors on here and whilst I know that there is already a lot of great info in the mining threads within the forum my question is subtlety different:
I would love to know which miners you think would stand the best chance of a big move in the late stages of the bull market?
I suppose I am asking where would the big money (hedge funds etc) would head if the sector took off at the end of the bull market?
Somewhat of a "crystal ball" question I realise but would be a great place to start my research!
(I already like the look of Sandstorm/Golden Predator/Tanzanian/Argonaut amongst others)
If you want more bang for your buck seriously consider buying the long-term warrants, if any, associated with the companies you are interested in. Sandstorm has 2 warrants (wt and wt "A") which expire in April 2014 and October 2015 giving you ample time for gold to go parabolic. Either warrant would be a better choice than the stock because they are priced approx. 50% less than the stock and, if history is any guide, will appreciate 50-100% more than the stock should the stock appreciate.
Argonaut Gold also has a warrant but it expires in less than 2 years so it is not on my radar.
It is unlikely that the big boys would get into the warrants of any but those of the large cap commodity related companies of Agnico-Eagle, Kinross, New Gold, Silver Wheaton and Franco-Nevada - the latter 2 being royalty stream companies like Sandstorm.
I have written many articles on commodity-related long-term warrants (I seem to be the only one doing so) over the past 7/8 years and developed 2 proprietary indexes - the Gold and Silver Warrants index (GSWI) and the broader Commodity-related Company Warrants Index (CCWI). You can get all the details here:
1. The “Secret” World of Gold & Silver Company Warrants https://www.munknee.com/2011/05/the-secret-world-of-gold-silver-company-warrants/
2. Gold & Silver Warrants Index (GSWI) Update https://www.munknee.com/2011/06/gold-silver-warrants-index-gswi-update/
3. Buying Gold & Silver Company Warrants is Easy & Profitable – Here’s How (and Why!) https://www.munknee.com/2011/06/buying-gold-silver-company-warrants-is-easy-profitable-%e2%80%93-here%e2%80%99s-how-and-why/
Enjoy and profit.
Thanks very interesting!
Thanks for the links Lorie.
edit: double post...
Anymore insights please Turdites?