Gold, as a physical asset, has for centuries been regarded as an asset that will hold its value over time. It’s relatively rare and its value is respected regardless of political borders. So gold ingots, bars, wafers, minted coins and jewelry with a high gold content have long been favored as safe havens for value. However, storing wealth in such a manner does have some difficulties. Safety and cost of storage are considerations and finding a buyer may be difficult, especially with jewelry and coins which may have high markups for reasons to do with aesthetics and rarity. The securities industry offers some alternatives. A simple way to use gold as part of your investing strategy is to buy units in an exchange-traded fund or ETF. A gold ETF does not, however, own any gold. Rather it holds derivative contracts that are backed by gold. Therefore the fund’s units reflect the changing price of gold. When you sell, you get cash, not gold.
There is another popular way to invest in gold through the stock market. There are many companies engaged in the exploration, mining and production of gold that offer their shares for sale on the stock market. However, the price of gold bullion, as it rises and falls, often has a levered effect on gold stocks. This means that the price of gold stocks is usually more volatile than the price of the underlying commodity. And while your gold stock’s corporate headquarters may be situated in a safe, stable country, its mines may be located abroad and exposed to the downside of some less developed jurisdictions around the world. You may find the price of your gold stock suddenly subjected to a sudden jump in costs, a drop in ore grades, strikes, expropriations, floods and so on. Or worse. Many Canadians will remember Bre-X Minerals Ltd., a company with headquarters in Calgary, that bought a property in the jungle near the Busang River in Borneo, Indonesia. Before the supposed discovery of gold was all exposed as a fraud, Bre-X’s capitalization grew to over $6 billion CAD in 1996. Its shares were soon worthless.
Investor's Digest of Canada •2020-07-02 •
Here are three royalty and streaming stocks. They enjoy lower expenses and less risk than their operating peers, while enjoying the upside of any successes.
Government responses to COVID-19 are paving Read More
The Investment Reporter •2020-06-23 •
The coronavirus hurt gold mining stock Agnico Eagle’s production and drove up its costs. But cash flow is healthy and it should earn significant free cash flow in the second Read More
Investor's Digest of Canada •2020-06-11 •
Low energy prices and weaker local currencies versus the USD, improve the profitability of silver and gold stocks in Mexico, Australia and Canada.
The best medicine for market reactions to COVID-19’s Read More
Investor's Digest of Canada •2020-05-07 •
Mining stock specialist Mike Kachanovsky says now is the time to buy heavily discounted precious metals stocks and capture a rebound in this sector that is long overdue.
It seems that Read More
The MoneyLetter •2020-03-12 •
Behavioural finance analyst Ken Norquay says buying energy stocks after the next bear market ends will be like buying the Dow Jones Industrials in mid-1932.
Modern journalism is characterized by repetition. Read More
The TaxLetter •2020-03-08 •
Old tax returns aren’t as much fun as mountain music but they provided an eye-opening experience for Toronto-based accountant Mark Goodfield, a.k.a. The Blunt Bean Counter.
When I was a young Read More
The MoneyLetter •2020-02-20 •
Behavioural finance analyst Ken Norquay says buying energy stocks after the next bear market ends will be like buying the Dow Jones Industrials in mid-1932.
Modern journalism is characterized by repetition. Read More
The MoneyLetter •2020-01-01 •
Behavioural finance analyst Ken Norquay says: Be alert for a sell signal in both stocks and bonds. We should be preparing to buy gold and oil ETFs.
Gold bugs are investors Read More
The MoneyLetter •2019-12-25 •
One of the world’s top-10 gold-mining companies and two juniors on the TSX Venture exchange all get ‘buy’ ratings in a recent MoneyLetter round-up.
Toronto-based Beacon Securities mining analyst Michael Curran Read More
The TaxLetter •2019-12-15 •
Shredding some old tax returns was an eye-opening experience for Toronto-based accountant Mark Goodfield, a.k.a. The Blunt Bean Counter.
When I was a young accountant and happened upon an estate return, Read More
The MoneyLetter •2019-11-20 •
There is a distinct possibility that the bond market, the stock market and the economy all peaked in the third quarter of 2019. Something is wrong. Beyond the Bull author Read More
The MoneyLetter •2019-10-23 •
Ken Norquay recalls the late Richard Russell’s admonition in making the case that investors who have not adopted financial plans that include selling, should do so immediately.
I remember those carefree Read More
Investor's Digest of Canada •2019-10-20 •
Haywood Securities mining analysts expect a positive backdrop for precious metals and related equities to remain. They name their six favourite gold stocks.
Since the all-time high of US$1,921 per ounce Read More
The MoneyLetter •2019-10-09 •
In a recent survey of gold mining stocks, The MoneyLetter featured the world’s largest producer and three juniors—all favored by the analysts that follow them.
Haywood Securities analysts Kenny Smith and Read More
The MoneyLetter •2019-08-21 •
In a recent survey of gold mining stocks, The MoneyLetter featured the world’s largest producer and three juniors—all favored by the analysts that follow them.
Haywood Securities analysts Kenny Smith and Read More
Investor's Digest of Canada •2019-08-01 •
Ximen Mining Corp.’s ambitions begin with re-examining the historic Kenville Gold Mine near Nelson, BC, a funky town more recently known for its ability to mine tourist dollars.
Ambitious junior exploration Read More
Investor's Digest of Canada •2019-07-11 •
While drugs and gold were the two most popular forms of payment for votes in the recent election in India, portfolio manager Elvis Picardo proffers far better reasons for picking Read More
The MoneyLetter •2019-06-19 •
Long term buy-and-hold strategies rely on up trending markets. Long term buy-low-sell-high strategies rely on volatility. That’s why behavioural finance analyst Ken Norquay recommends incorporating selling into your investment strategy.
Previously Read More
Investor's Digest of Canada •2019-05-26 •
While drugs and gold were the two most popular forms of payment for votes in the recent election in India, portfolio manager Elvis Picardo proffers far better reasons for picking Read More
The MoneyLetter •2019-04-03 •
Equity mutual fund managers sense a high risk in the stock market and are increasing their cash reserves. But the amount of cash they hold is restricted by the fund’s Read More
The MoneyLetter •2019-03-21 •
It’s tough to get analysts excited about natural resource stocks these days. Words like ‘neutral’, ‘hold’ and ‘average’ reflect the mood of the street for many Canadian natural resource companies.
Pretium Read More
Investor's Digest of Canada •2019-02-25 •
PI Financial’s Chris Thompson and Philip Ker say investors should watch for a potent reversal and widening of the gold-to-silver ratio to historic highs (roughly 86:1) which will favour accumulating Read More
The MoneyLetter •2019-02-07 •
Equity mutual fund managers sense a high risk in the stock market and are increasing their cash reserves. But the amount of cash they hold is restricted by the fund’s Read More
The MoneyLetter •2019-01-23 •
A recent review of gold mining stocks by The MoneyLetter turned up three analyst reports with recommendations ranging from ‘speculative buy’ to ‘buy’ to ‘outperformer’.
PI Financial on Troilus Gold
Gold and Read More
The MoneyLetter •2019-01-17 •
Behavioural financial analyst Ken Norquay believes managers of big portfolios are ‘concerned’ about the market. But they have a liquidity problem. Selling will depress the market. Small investors don’t have Read More
Investor's Digest of Canada •2018-10-22 •
The shock of past downward projections belies the true value of established gold miner Guyana Goldfields’ Aurora gold mine, says Investor’s Digest of Canada junior mining stock columnist Mike Kachanovsky. Read More
Investor's Digest of Canada •2018-09-25 •
If gold reaches more than US$1,377.50 per ounce, seasonal analyst Don Vialoux says: “Every analyst on the street is going to be yelling: ‘We’re finally reaching the next secular cycle Read More
Investor's Digest of Canada •2018-08-09 •
There are strange things done in the midnight sun / By the men who moil for gold; / The Arctic trails have their secret tales / That would make your Read More
The MoneyLetter •2018-07-12 •
‘Buy high, sell low, repeat until broke’ is an emotional investment strategy best left to lemmings. The MoneyLetter’s behavioural finance columnist Ken Norquay says feeling emotions is okay: reacting to Read More
Investor's Digest of Canada •2018-07-09 •
On a recent site visit to Ecuador, PI Financial analysts Chris Thompson and Gary Sidhu saw the importance of being a first mover in an emerging district ripe for discovery. Read More
Investor's Digest of Canada •2018-07-04 •
If gold reaches more than US$1,377.50 per ounce, seasonal analyst Don Vialoux says: “Every analyst on the street is going to be yelling: ‘We’re finally reaching the next secular cycle Read More
The MoneyLetter •2018-06-06 •
‘Buy high, sell low, repeat until broke’ is an emotional investment strategy best left to lemmings. The MoneyLetter’s behavioural finance columnist Ken Norquay says feeling emotions is okay: reacting to Read More
Investor's Digest of Canada •2018-05-28 •
New Jersey Mining has generated sustainable mining operations in Idaho while achieving discovery success as an emerging producer in a difficult market. Investor’s Digest of Canada columnist Mike Kachanovsky.
While Read More
Investor's Digest of Canada •2018-04-23 •
The Investor’s Digest of Canada, in its regular ‘Views of Leading Analysts’ feature, recently noted three Canadian junior gold stocks favored by Toronto-based PI Financial analysts, Brian Szeto and Philip Read More
The Investment Reporter •2018-03-18 •
When you buy stocks in sectors and sub-sectors of the market, keep your goals in mind. If you’re a conservative, income-seeking investor, focus on utilities, financial stocks and consumer stocks. Read More
Investor's Digest of Canada •2018-03-15 •
Technical analyst Brian Hoffman gives his advice on eight precious metals mining stocks and an exchange traded fund that tracks the share price movements of the big precious metals miners. Read More
Investor's Digest of Canada •2018-02-22 •
While most market analysts tend to focus on the energy or technology sectors, the mining sector has experienced a bit of a revival that hasn’t gone unnoticed. Columnist Mike Kachanovsky Read More
Investor's Digest of Canada •2018-02-01 •
Columnist Mike Kachanovsky shares his insight and analysis on one of his current favourite junior gold stocks. It does not pay a dividend but it’s a junior mining stock that Read More
The MoneyLetter •2018-01-31 •
Behavioural finance author Ken Norquay adopts a Buddhist prayer to offer his take on some strategic investment advice for the new year.
We’ve just been through what I call The Read More
Money Reporter •2018-01-15 •
Given its record gold production and strong cash flow generation, gold stock Agnico has increased its production guidance and its dividend. Production is now expected to exceed 1.68 million ounces Read More
The Investment Reporter •2018-01-14 •
It’s best to diversify your portfolio across all five sectors of the economy: finance, utilities, consumer, manufacturing and resources. Remember, though, there’s danger in loading up on stocks in sectors Read More
Investor's Digest of Canada •2017-12-05 •
Timing the Market and Equity Clock founder, Don Vialoux says the season for investing in gold and silver is now (especially silver). He lists his two recommendations for gold and Read More
The Investment Reporter •2017-11-07 •
It’s said that gold comes out of dark underground mines only to disappear into dark bank vaults. When we publish our gold stock survey, we do outline the yellow metal’s Read More
Investor's Digest of Canada •2017-10-30 •
Looking out for bargain gold mining stocks? The mining industry as a whole has worked diligently to keep costs minimal and valuations high. Even so, more than a few gold Read More
The MoneyLetter •2017-10-18 •
Stock market speculators should continue to work in Canadian oil and gas stocks and precious metals stocks. Gold, silver, oil and natural gas are all in long-term up trends right Read More
Investor's Digest of Canada •2017-09-28 •
“Irrational exuberance” is how former US Fed chairman Alan Greenspan described the stock market during the dot-com bubble of the 1990s. Investor’s Digest of Canada columnist Edward Gardiner looks at Read More
The Investment Reporter •2017-09-14 •
Four times a year The Investment Reporter reviews its outlook for the economy’s five main sectors—financial, utilities, manufacturing, consumer and resources. Its guiding rule is that investors keep at least Read More
The MoneyLetter •2017-09-06 •
The MoneyLetter columnist Ken Norquay creates a long-term investment strategy based on his study of behavioural finance and its effect on the stock markets. He says if the S&P 500 Read More
Investor's Digest of Canada •2017-09-03 •
Seasonal financial analyst Don Vialoux says precious metals and their mining stocks generally reach a seasonal low in July and pick up speed again until late September. Cyclical stocks usually Read More
Investor's Digest of Canada •2017-08-13 •
“Irrational exuberance” is how former US Fed chairman Alan Greenspan described the stock market during the dot-com bubble of the 1990s. Investor’s Digest of Canada columnist Edward Gardiner looks at Read More
Money Reporter •2017-07-31 •
Cyclical investing works if the timing is right. The key question is: “Is this the right time?” Our current expansion (begun in 2009) is getting long in the tooth. Sectors Read More
Money Reporter •2017-07-24 •
Rising interest rates have historically benefitted cyclical securities like mining stocks, fertilizer stocks and gold stocks. The Money Reporter picks a mutual fund with broad exposure to the sector, a Read More
