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Posts Tagged ‘Forex’

Interactive charts on CashInfo.org, watch Great Panther (TSX:GPR) and going short on all-time highs

You can now view interactive charts from 24hgold.com on this website! This will keep you in touch with just a few mining stocks, which have been carefully selected. Just visit our: portfolio

Watch Great Panther (TSX:GPR)

We are a shareholder of this company for almost a year now. Great Panther is primary silver producer. We knew this company was a solid buy, and you can still buy into this company at about the same price as in September 2009. Please read the year report of 2009 via this link The report confirmed to us that Great Panther will gain much value the coming years. Despite the fact that the price of silver has gone up quite a lot, the price of this stock hasn’t, that just means there is only more upward potential in share value.

How does CashInfo.org select great investments

CashInfo.org only buys stock with the principals of value investment in mind. We are a big fan of Warren Buffet, one of the richest persons in the world and a true value investor. And remember that Warren Buffet has bought a lot of silver in 1997 at $ 4,96 per ounce, and he holds on to it. This also means that once we bought into our carefully selected companies we intend to hold them for as long as possible. Only when a stock is massively overvalued we might be tempted to sell. Otherwise, we hold on to them for many years to come! We read every quarter/year report there is in the companies we own and the companies we follow.

The new Selection

Starting four months ago with started with 39 companies on our list, after hard labour we narrowed the list down to a 4 company short-list. We will probably buy stock this coming week, the moment we do we will reveal the name of the lucky company at once. The gold price has become quite predictable this summer, I say we reach a new all time high on Monday, than within 48 hours selling pressure (and price manipulation) will cause a sharp decline back to the $1230 range. This will be the moment we buy.

Going short

It’s tempting to consider other trading instruments with this volatile market. When you go short whenever, or a near all-time high is reached you provide a hedge for your mining stock, and since it it most likely to go down again after each upward spike it might be fun to experiment a bit. So last week we bought a sprinter Gold Short of the ING bank in the Netherlands noted on the EuroNext options exchange in Amsterdam, there are many leverage products alike this one offered by other banks in other countries, please read their information thorough since the product might differ. Sprinters are leveraged products that allow investors to benefit from accelerated returns generated by the price movements of their underlying value. Sprinters are available across asset classes and ING commits to offer Sprinters on a broad range of underlying values. In addition to attractive spreads, ING strives to consistently provide an excellent level of service to its clients.  Buying June 18 @ € 6,30 and selling June 24 @ € 8,33 hope I can try this trick again this week.

Update on the gold and silver market. Bumpy road ahead, but much upward potential.

Sorry I haven’t posted anything for such a long time, I am very glad I am blogging again! After almost six months yet again another all-time high has been reached in the price of gold. Last week there was is slight pull-back, but today we see bargain hunting again.  I expect the gold price to remain in the $1160 – $1250 range for the coming months. This is not what happens in ‘normal’ years, than there always is a drop of the gold price in the summertime, so not this year!  The biggest development in the last moths has been the fact that the gold price now moves independently from the dollar index. I visit www.kitco.com on a daily basis. The Kitco Gold Index gives the investor a better view of the price development. We probably will have to wait till September before we will see a steady price of about $ 1300 However, there may also be upward as well as downward spikes these coming months. We still advise to buy gold whenever is falls below $1180 I myself don’t do trackers or Forex trading, but this volatile market is sure making them interesting tools for the more aggressive trader.

Some people say we are in a bubble

We’re not! When your taxi driver or shoe polisher advises you to buy gold, than we are in a bubble. You do see the financial media have picked up the marked trend, and are following it closely.  This merely was the first step towards bubble forming. This will end in a bubble, that’s for sure as well. But with ever diminishing gold and silver deposits on this earth make sure a firm bottom for prices has been formed now.  When you correct the 1980 prices of gold and silver for inflation, the all time gold price would be around $6000 and that of silver about $120 when we reach these ranges, and we will, we can talk about a bubble again.

What about the silver price?

The price explosion I discussed in the previous post has not happened, yet. For this event we probably have to wait for September as well. With rising gold prices the material becomes more and more ‘out of reach’ for some small investors and the general public.  This will result is a correction of the gold/silver ration to its historical value of about 15. If we apply this ratio to today’s gold price of $1200 silver should cost $80 per ounce. One reason for prices not to have exploded yet is the price manipulation of this market.  You can read some very interesting facts about this manipulation via this link. For information about manipulation of the gold price please visit www.gata.org

Buy gold and silver! Bullion, coins, nuggets, and Silver Wheaton (SLW)

The European dept crisis will continue at least for two  years. The so much discussed PIIGS countries will contribute to a further decline of the Euro. Now about them PIIGS, this surely must be the best marketing hoax since the Blair Witch Project.  The people who made up this term confidently left out Great Britain and the United States. Those two countries have issues with their money base and depts. far greater than the PIGGS counties. Therefore physical gold and silver will give the best ‘insurance’ for the longer term. We managed to pick up some more shares of Silver Wheaton (SLW) at a price of $14.95 We have put in another buy order at a price of $17.50 We will monitor the price of this stock closely. Established in 2004, Silver Wheaton has quickly positioned itself as the largest metals streaming company in the world. The company currently has thirteen silver purchase agreements and two precious metals agreements where, in exchange for an upfront payment, it has the right to purchase all or a portion of the silver production, at a low fixed cost, from high-quality mines located in politically stable regions.

Forecast 2010 production, based upon the company’s current agreements, is 22.2 million ounces of silver and 20,000 ounces of gold, for total production of 23.5 million silver equivalent ounces. By 2013, annual production is anticipated to increase significantly to approximately 38 million ounces of silver and 59,000 ounces of gold, for total production of over 40 million silver equivalent ounces. No ongoing capital expenditures are required to generate this growth and Silver Wheaton does not hedge its silver production.

Silver Wheaton’s industry-leading growth profile is driven by a portfolio of world-class assets, including silver streams on Goldcorp’s Peñasquito mine in Mexico and Barrick’s Pascua-Lama project straddling the border of Chile and Argentina. The company’s unique business model creates significant shareholder value by providing considerable leverage to increases in the silver price while reducing the downside risks faced by traditional mining companies. Silver Wheaton has an experienced management team with a strong track record of success and is well positioned for further growth.

For more information on silver streaming and Silver Wheaton’s silver stream agreements, please click here.

Own physical silver and gold? Visit BullionVault via our link. Note: CashInfo.org will earn commission if you use this link to sign on and trade. You can also visit your local stamps and coinage shop if you want to keep your gold and silver close to you, and store it safely at home.

Development of the Kitco Gold Index (KGX):