Symbol Lookup »
($$) Newsletters »
Self Directed Investor Inc
Newsletters ($$) »  Email alerts (free) »  RSS »
SDI: "Empowering investors with ideas and education"
$$  Newsletters  |  FREE   ♦ Articles · Videos · Calls  |  TOPICS  ETFs · Earnings · Economy · Energy ·  ♦ Gold · Income · Personal Finance · Trading


The Gold Stock Strategist analyzes leading junior gold producers and major gold mining companies.

Comments are welcomed!

Tuesday, November 11, 2008


Thank you to those who have been emailing and asking me to post my thoughts.

I've been very busy lately and the Gold Stock Strategist has had to take a back seat. Apologies to my readers.

That said, fundamental analysis is pretty worthless in the current macro environment. And until the macro environment improves, my fundamental analysis on the Gold Stock Strategist isn't useful.

I still hold my investment stake in Metanor and Gold-Ore Resources and my portfolio has suffered with the severe stock price compression. They are both still producing gold. Metanor appears to have solid plans for expansion next year. Gold-Ore will likely need a refinancing in the coming months, but they are also producing gold--even increasing production month over month. The fundamentals for these two companies haven't changed with the exception of expectations for the price of gold going forward.

Realistically, the emerging junior gold producers need a sustained price of gold over US$1,000 to move up in share price given the current uncertain macro environment. And I thought that would happen this year given the credit crisis.

What happened was the deleveraging away from equities--including emerging junior gold producers--to US Treasuries (UST) as a safe haven play put a tremendous lift under the US$. Capital moving to UST as a safe haven would in past decades have gone into gold bullion. No gold analyst I am aware of predicted this global capital action into UST rather than gold.

As I have always believed, emerging junior gold producers were speculative plays. The logic in favor of this sector still holds in the near term if capital begins to see gold as more of a safe haven in financial crisis than US Treasuries.

I expect the price of gold will remain range bound between $675 and $825 an ounce. But no one really knows how gold will behave in the future and I could be wrong.

Good luck to all,

The Gold Stock Strategist

Gold Price Chart--Interactive

HUI "Gold Bugs" Index--Interactive

Breaking News!

    follow me on Twitter

    Gold & Mining News

    Seeking Alpha on Gold and Miners

    Lijit Search

    Disclaimer and Copyright

    Gold Stock Strategist receives no payments from companies in exchange for coverage. The Editor does own and authors may own and trade stocks they mention.

    Nothing in is intended to be investment advice, nor does it represent the recommendations by or other authors.

    The reader accepts information on the Gold Stock Strategist with the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action.

    The information on the Gold Stock Strategist is solely for the entertainment of the reader and authors.

    The Editor reserves the right to delete material deemed inappropriate for

    ©2008-2009, Nystrom & Associates LLC, All rights reserved and protected under US copyright law.

    FEEDJIT Live Traffic Feed

    SDI Featured Articles | Self Directed Investor | Copyright © 2008 - 2009, All Rights Reserved

    Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of Self Directed Investor, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will Self Directed Investor, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

    SDI is associated with: -- participation in SDI's conference calls is available exclusively to ValueForum members. | -- weekly SDI videos are produced by Market News Video. | -- stock quote content is at least 20 minutes delayed and is powered by Ticker Technologies. | -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.