tag:blogger.com,1999:blog-5673441815180854503.post27529193364098760..comments2023-09-10T09:54:59.309+01:00Comments on Screwtape Files: Time to go long the gold miners again? (UPDATED) (AGAIN)Louis Cypherhttp://www.blogger.com/profile/07670126160101669248noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5673441815180854503.post-89005947610103361072012-03-13T20:04:16.534+00:002012-03-13T20:04:16.534+00:00@VTC - we posted at exactly the same time - weird!...@VTC - we posted at exactly the same time - weird! Anyway, I've addressed the fall in the gold price in my comment which appeared at the same time as yours.<br /><br />Indeed, I'm touting miners as a trade rather than an investment here (hence the reference to making 10%). That said, I think that these stocks are remarkably oversold, and cheap at twice the price, so do represent a good solid long term investment. Not least because the dividends for some companies can be pretty good.<br /><br />And thanks for pointing out the typo - now corrected.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5673441815180854503.post-27758144885466176152012-03-13T19:59:39.536+00:002012-03-13T19:59:39.536+00:00OK, talk about Sod's Law... Whilst writing thi...OK, talk about Sod's Law... Whilst writing this, gold fell $15, but I thought, "what the heck, I'll publish anyway".<br /><br />It's since gone on to fall $35 in total, and may yet fall further. I accept full responsibility for this flash crash, as I should know better than to be bullish, ever...<br /><br />It should be said that the white candle on the daily HUI chart will almost certainly be followed by a red one on tomorrow's chart because of this fall in the gold price. How big a red candle remains to be seen.<br /><br />However, I stand by the thrust of what I have written here: we are in the buy zone for gold miners, and tomorrow or Thursday may well represent the perfect buying opportunity - even better than the one I was presenting in this article. I for one will be snapping a few more up.<br /><br />But DYOD, GLTA, etc., etc.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5673441815180854503.post-17524860627806636832012-03-13T19:59:23.255+00:002012-03-13T19:59:23.255+00:00Apart from the fact that gold is down to about $16...Apart from the fact that gold is down to about $1665 as I am typing this, I should remark that gold miners may be a good investment only if we are getting a period of higher inflation without the system breaking down (similar to the 1970s). So a trade, yes, but an investment, I am not sure.<br /><br />Somehow the gold miners are the ones that get screwed the worst of all. As long as gold trades at present 'commodity' prices, they are forced to sell at these ridiculous prices. Should gold ever trade as pure 'store of value', they will not be allowed to cash in. Poor chaps.<br /><br />Still, exploration companies might work to some degree, but then that's a serious minefield for company specific reasons.<br /><br />Victor<br />PS: There is some typo in the article - I suppose you want to say that the HUI has been range bound since Nov 2010 (!)Victor The Cleanerhttps://www.blogger.com/profile/16744589105656704349noreply@blogger.com