What are your favorite gold stocks, and why?
I hope Warren B. will answer this one. I just read your very interesting analysis of Barrick on Tycoon. I have been favoring Goldcorp (GG) in recent months, and wonder how you regard that one? Also would like to hear from other goldbugs as well.
Best Answer
546 points
warren answered one year ago …
Hey Ethan, I love GG (and am in the middle of the lenghty CC from yesterday)and Kinross for larger ones, although I favor GG as they have less geopolitical risk.
I don't invest in the larger ones however, for as big as I get I like SLW (not Gold I know) and NDM, I like the CDN exchange as it's a currency play as well.
I look for growth in the mids, minefinders is tops with near production,great small ones like LaMancha, Kimber, ATW, I can't give all my secrets away, but you can always shoot me a personal email if you like. (maybe intergrate that feature into the site)
It's much easier to find someone who can double production from say 500k to 1 million ounces rather than 5 million to 10 million.
GDX is good for people who cannot make sense of this confusing industry thought.
I wish I could say one, but at these prices there are so many to make a killing on it's not funny. I wish I had more money!
I had something els to say but I lost it, maybe later.
Silver will outperform Gold, you can take that to the bank and include it in your analysis.
One you should look into Ethan is NUS, listen to a presentation on their site. It's very interesting and tantalizing.
Much to do, so I must run,
Warren,
www.preciousmetalsockreview.com
Answers
989 points
rvilmur answered one year ago …
The major gold stocks are probably overpriced even though they have been lagging the price of gold. Lagging even more have been the smaller gold stocks and Canadian exploration plays. Since I expect the price of gold to rise rapidly over the next several years due to the dollar erosion policies of our government, I favor small companies that have large gold deposits that are still in the ground. Eventually the large gold companies will have to buy them to maintain their gold output. I like NG, NAK, and TGB traded on U.S. exchanges.
Read more from rvilmur546 points
warren answered one year ago …
I remembered what I was going to say.
NG = not great! They have great deposits, and great topline managment. I have personal experience talking with people who worked in Galore before the shutdown. It was very sloppy, an example is someone would forget a wrench, they called the heli back just for a wrench.
The waste was huge, the heli was flying every minute of light, people wasting time, building camps only to decide to move them soon after completion. The list goes on, and you won't find this info anywhere, unless you talk to the employees there.
Not saying you can't make money on NG especially at these levels, but as I said before it's a tough confusing industry with too many variables to go wrong and it's almost like throwing a dart unless you know what to look for.
But then again at these prices a monkey could throw a dart at the stock pages and pick a winner in the smaller ones...no doubt!
Warren
