If your safe deposit box is full of precious metals, and you’re thinking about investing in gold mining stocks, then consider what well known Swiss investor Marc Faber is holding:
Mining companies I own include Newmont Mining (NEM), Goldfields (GFI), Ivanhoe Mines (IVN), Nova Gold (NG), Gabriel Resources, and the Egyptian gold play Centamin.
Source: Gloom Boom & Doom Report (October 28, 2009)
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Thank you for posting Faber’s list of gold stocks. You highlighted some large cap miners, so I’d like to draw your attention to several small and mid cap gold mining companies, all of whose stocks have done considerably better this year than the large caps because of the considerable leverage they offer to the gold price:
San Gold (ticker SGR on the TSX Venture Exchange)
Aura Minerals (ticker ORA on the TSX)
Claude Resources (ticker CGR)
Golden Star Resources (ticker GSS)
Premier Gold (ticker PG on the TSX)
Fortuna Silver (ticker FVI on the TSX Ventures Exchange) ; this one is actually a silver mining company that I particularly like as well
There is a lot of good news and analysis on these companies at http://www.goldalert.com too which provide details on the risks and potential rewards of each company, including projects in development, geographic and political risk, company history, description of company management and their personal experience, and a lot much.
I like the fact that Faber is a director at Ivanhoe, which is cranking up operations over in Mongolia and partnering with Rio Tinto.
One of my personal favorites is El Dorado.. Here’s a little excerpt about them from an email I sent a friend:
Company: Eldorado Gold
Base Country: Canada
Country of Operations: China, Turkey, Brazil, Greece
Ticker 1: EGO (US AMEX)
Ticker 2: ELD (Canada TSX
Dividend: NONE
Website: http://www.eldoradogold.com/s/Home.asp
Recommended By: Stansberry Research/Matt Badiali and Real Wealth Report/Larry Edelson
Notes: These guys are mining gold right now in China and expanding operations. So, you would see profit not just from the rise in price of gold, but also their expanding operations.. the Greece mine will be up and running in 2011. One of these days, these guys might be a “major†as I think they are pretty close now. Advice from Baldiali was to buy El Dorado up to $11 a share.. This was back in June, and he was referring to the USD price. My personal opinion is that whether you buy in Canada or USA, the stock will perform about the same. But probably going with Canada is the way to go.. I seem to like it a little better than via USA ticker, especially if you can buy through a foreign broker. One risk I see with the Chinese operations is the fact that China is a communist country and they can pretty much do whatever they want. If they choose to seize the mines in the future, they can do so. If they choose to tax profits to extreme levels, they can. Of course, this can happen anywhere and it’s a risk one takes when investing in gold. But the company is legit as far as I am concerned.
Disclosure: I currently do not own El Dorado or Ivanhoe shares
Can someone tell me what the best silver mining/explorer play is based on the US exchange? I just bought SVM today and I also own Hecla but I’m looking for the lowest cost extractor with the greater leverage for silver. Any thoughts?
Hecla… good stuff! nice hit if you bought it under $3 a few months ago!
There is a company Bob Chapman recommend in a post over at the International Forecaster a few months back called Silver Standard Resources, Inc. (SSRI). According to Chapman it is the largest published silver resource in the world (of publicly held companies). I am not sure about the underlying numbers, but maybe worth checking out. If you do happen to scobe it, I’d love to hear your feedback on it.
Hey Mac, yeah I got HL under 3. I think it’s still a steal under 5 and a great bargain under 10. I’ve heard of SSRI but don’t know much. I’ll look into it further. I do really like Silver Corp (SVM) though. Silver is the ugly cousin of gold that gets no appreciation. It’s supply is vastly lacking and its use industrially is super high plus the fact that it’s at a lower base (17-18) means that this baby is going to go thru the roof!Â
I am with you long-term on silver. I would not be surprised to see it at $50… or even higher. The gold/silver ratio needs to get smaller, and that is very good news for silver.
I often hear people say “You can’t eat gold!” The funny thing is, that one of the few things you can do with gold is EAT IT! (Wikipedia). Other than that, industrial use is quite limited. Of course, it will become/has become defacto money, but my point is, that silver is also a solid monetary unit, proven throughout history, plus it has tons of industrial uses.
Right now, I am just waiting for a little pull back and I am loading up with everything I have left unallocated in my trading accounts and I plan on just holding for a while. Hecla, SilverCorp and SSRI is where my money is going to go… [maybe a little into GDX and GG too :)Â ]
I am tired of trying to play swings here and there.. I’ve got other, more important things to focus on now, so I am just going to lock in for the long-haul and hope for the best.. And you know what? If the system doesn’t collapse and all of us precious metals bugs are wrong, then it won’t be so bad, because we should be able to easily find jobs, and for those that are self employed, business will increase.
Seems like a win-win to me!