The chart does not show up, have a bar chart of evey year of returns since 1971...though have reported data in the returns.
my biggest sr. gold I own is abx, since will lose 90% of my yri at 12cdn. Should note, do not own Osisko gold, which I had, and looking at Rainy river gold, do not own any they will probably buy some soon.
in general happy with how I played gold this year and last, my main regret is not adding to jr. when I bought sr..., many jr. went up 300-600%. my belief the sr. were the safest place to be since investors and financing would be hard to get in early 2009 for the jr... was wrong on that.
going to continue to hold until gold breaks down, still acting well.
12% of the overall portfolio though this will fall to 5% avg. into next year.
thanks
selkirk
Share Club December 4, 2009
Gold
Year to date return on gold is 17%.
1971 -1980 gold gained 34% annualized.
Since 1980 gold has gained just 1.5% annualized.
Most people look for gold, since in the past it has moved down when the market moved up?and on market corrections it gained.
However this year gold seems to be going up when the market rallies?so time will tell if it is a good hedge against the market.
My largest share position is in YRI, bought in November 2008 at 8.50-9 cdn. It quickly dropped to 4.50-4.75 cdn. at the height of the correction. Kept the stock as gold was going up and YRI was increasing production.
Since have had it for a year have written four covered calls for $1 each, 2-3months out, this reduced my cost to 4.50-5. The downside is will lose most of my position in Jan 2010 for $12. that is the covered call I have on the stock. Jan $12 Call YRI. So have to sell it at $12.cdn.
Also own a position on ABX, and have $40, and $42 puts, got .80-$1.
ABX will have growing production and are buying back their gold hedges which makes this a pure gold play. Bought some at $44 cdn. to replace my YRI that I will lose.
Besides seniors like ABX, Goldcorp, Agnico Eagle, Newmont (do not care for), there are plenty of jr.
There is more risk to Jr. however there is more upside as well, take Osisko Gold hit a low of 1.88 around a year ago during the correction?hit a high of 9.24 and is trading around 8.24.
There are jr. gold companies that have found gold and in some cases large deposits ie. Rainy River Gold, one should look at these type of companies before looking at a pure exploration play without any large amount of gold reserves found?.
Jr. gold companies are high risk and the chances are high you will lose money on them, so you would play them only after some research and with money you are willing to lose.
GLD: is the ETF in the US that holds physical gold 72.91 low high 118.90. close 118.40.
XGD low 13.20 high 24.20 close 24 cdn. This is a gold etf that trades on Toronto, large volume and holds mostly a handful of large gold companies will track their performance?tell me what gold will do and I will tell you when to buy a senior gold stock.
Physical gold http://www.scotiamocatta.com all you need is a scotiabank account and you can buy physical gold or silver, ect. From most scoitabank branches. This can be expensive for small amounts, but still a good option if you want the physical metal, or you can buy certificates from them also?website is good and explains.
Ebay: sometimes you can buy old coins for the melt value though that seems rare since the gold and silver price has gone up?
Biggest risk to gold price is the rise in interest rates: a (sharp) rise in interst rates would not only hurt long term bonds and preferreds they would put downward pressure on gold prices?as the carry costs would increase.
Biggest upside: Large economies are getting more worried about the US dollar and want to put their investments in different assets, gold, silver, ect.
my biggest sr. gold I own is abx, since will lose 90% of my yri at 12cdn. Should note, do not own Osisko gold, which I had, and looking at Rainy river gold, do not own any they will probably buy some soon.
in general happy with how I played gold this year and last, my main regret is not adding to jr. when I bought sr..., many jr. went up 300-600%. my belief the sr. were the safest place to be since investors and financing would be hard to get in early 2009 for the jr... was wrong on that.
going to continue to hold until gold breaks down, still acting well.
12% of the overall portfolio though this will fall to 5% avg. into next year.
thanks
selkirk
Share Club December 4, 2009
Gold
Year to date return on gold is 17%.
1971 -1980 gold gained 34% annualized.
Since 1980 gold has gained just 1.5% annualized.
Most people look for gold, since in the past it has moved down when the market moved up?and on market corrections it gained.
However this year gold seems to be going up when the market rallies?so time will tell if it is a good hedge against the market.
My largest share position is in YRI, bought in November 2008 at 8.50-9 cdn. It quickly dropped to 4.50-4.75 cdn. at the height of the correction. Kept the stock as gold was going up and YRI was increasing production.
Since have had it for a year have written four covered calls for $1 each, 2-3months out, this reduced my cost to 4.50-5. The downside is will lose most of my position in Jan 2010 for $12. that is the covered call I have on the stock. Jan $12 Call YRI. So have to sell it at $12.cdn.
Also own a position on ABX, and have $40, and $42 puts, got .80-$1.
ABX will have growing production and are buying back their gold hedges which makes this a pure gold play. Bought some at $44 cdn. to replace my YRI that I will lose.
Besides seniors like ABX, Goldcorp, Agnico Eagle, Newmont (do not care for), there are plenty of jr.
There is more risk to Jr. however there is more upside as well, take Osisko Gold hit a low of 1.88 around a year ago during the correction?hit a high of 9.24 and is trading around 8.24.
There are jr. gold companies that have found gold and in some cases large deposits ie. Rainy River Gold, one should look at these type of companies before looking at a pure exploration play without any large amount of gold reserves found?.
Jr. gold companies are high risk and the chances are high you will lose money on them, so you would play them only after some research and with money you are willing to lose.
GLD: is the ETF in the US that holds physical gold 72.91 low high 118.90. close 118.40.
XGD low 13.20 high 24.20 close 24 cdn. This is a gold etf that trades on Toronto, large volume and holds mostly a handful of large gold companies will track their performance?tell me what gold will do and I will tell you when to buy a senior gold stock.
Physical gold http://www.scotiamocatta.com all you need is a scotiabank account and you can buy physical gold or silver, ect. From most scoitabank branches. This can be expensive for small amounts, but still a good option if you want the physical metal, or you can buy certificates from them also?website is good and explains.
Ebay: sometimes you can buy old coins for the melt value though that seems rare since the gold and silver price has gone up?
Biggest risk to gold price is the rise in interest rates: a (sharp) rise in interst rates would not only hurt long term bonds and preferreds they would put downward pressure on gold prices?as the carry costs would increase.
Biggest upside: Large economies are getting more worried about the US dollar and want to put their investments in different assets, gold, silver, ect.
