Streetwise Reports' Article Archives — December 2015 back to current month (13)
2015: A Year of Investing Perspective (12/28/2015)
As we at The Gold Report interviewed the investing stars in 2015, we saw some patterns develop. Whether it was in the wake of terror attacks, bond defaults, currencies (we are looking at you, Swiss Central Bank and China, decoupling from the euro and dollar respectively), political drama in the U.S., Iran, Turkey, Ukraine and Germany or the long-rumored Federal Reserve interest rate hike, the call seemed to be for patience. Crises come and go, cycles have their way with commodities and then move on only to return again under another headline. Smart investors, according to the experts we interviewed, know that the way to weather these storms is to be diversified. The way to profit from them is to be contrarian. Let's take a stroll down memory lane and see what it tells us about the road ahead.
Mining companies and their shareholders have come to the realization that doing the right things in the communities where they operate is important for a lot of reasons, including the bottom line. Mining executives also tell The Gold Report that the most effective corporate social responsibility (CSR) programs are orchestrated cooperatively instead of applied prescriptively.
The price of gold has see-sawed since the Federal Reserve raised interest rates on Dec. 16, and market experts debate if the action is good or bad for gold. Rob Chang of Cantor Fitzgerald Canada believes that after the small rate hike doomsayers are overstating their case and that gold should sell in 2016 for about $100/oz more than today. In this interview with The Gold Report, he argues that in today's climate cash costs below $1,000/oz are the bare minimum requirement for survival. Happily, Chang highlights three gold producers and one silver producer that have what it takes.
Eric Coffin, editor of HRA Journal, writes one of the must-read newsletters in the junior mining sector. In this interview with The Gold Report, Coffin implores gold equity investors to ask: Is the project financeable in this market? And he discusses some companies he covers in the HRA Journal with the know-how to find funds, as well as a couple of uranium names that would benefit from utilities re-entering the market to find long-term delivery deals. But Coffin gets rolling by questioning U.S. Federal Reserve Chairman Janet Yellen's timing, warning investors about the growing divergence between equity and higher yield markets, and shooting down the accepted theory that the U.S. dollar index is heading to 120.
Predicting is a risky sport and predicting markets an extreme one. But understanding can be much more lucrative. After years of speculation about the negative impact a Federal Reserve rate increase could have on gold, a number of our experts took a contrarian view and based on an understanding that the hike was already priced into the gold price, they explained that it would actually benefit the gold price because it would remove the overhanging doubt. And that is exactly what happened. Within hours of the unanimous announcement on Wednesday that the Fed's benchmark short-term borrowing rate would go up a quarter point, gold was up $14/oz.
Thibaut Lepouttre, editor of Caesars Report, knows 'tis the season for generosity, so when we asked him for his top three picks among junior mining equities, he gave us five—four gold plays and a phosphate name. Belgium-based Lepouttre also discusses different "black swan" events and their potential impact on the gold price, as well as some naughty and nice mining jurisdictions. But this is the interview that keeps on giving, so before he left Lepouttre added two micro-cap oil names he believes would make great "stocking stuffers." He may not be Santa Claus but you'll appreciate his magnanimity in this interview with The Gold Report.
The exhibit hall at the Silver Summit in San Francisco was filled with resource companies. Investors roamed the booths and sat in on CEO presentations to determine which companies had the best geography, core samples, business plan—and ultimately—chance of returning big upside to shareholders. The Gold Report took the advice of Frank Holmes, CEO and chief investment officer at U.S. Global Investors who recommended the book "The Wisdom of Crowds" by James Surowiecki, and polled attendees for the best prospects. The results were pretty overwhelming.
What does a veteran mining executive look for when investing his money in junior equities? In this interview with The Gold Report, Rob McEwen, who has been predicting $5,000/oz gold prices since 2011, explains why he still thinks that this is a possibility in the next four years and how companies can take advantage of technology to ensure that a price rise goes to the bottom line—and ultimately shareholders. And he shares the names of the three companies that meet his litmus test, one of which bears his name.
Amid a tempestuous year for the U.S. dollar gold price, gold has quietly moved up about 6% in Canadian dollar terms, squarely placing the focus on gold producers with Canadian operations that generate cash flow, says Ryan Hanley, mining analyst with Mackie Research Capital. In this interview with The Gold Report, Hanley lists his storm-tested top picks, shines light on names with M&A potential, and sees smooth sailing ahead for some companies with near-term catalysts.
If only someone could bottle the experience of finding an overlooked company, investing for pennies a share and cashing in for 10, 20 or 30 times what you paid. Priceless, right? But how to find those companies? Small caps aren't covered by the mainstream press and analysts the way blue chips are, and determining value of an early-stage company before profit and loss statements take on real meaning and big questions about science and markets are answered can be difficult. That is why veteran investors like Tom Swaney, president of California-based Harwood Capital Inc., like to meet management in person at events like the California Capital Conference.
Gold bars? ETFs? Junior miners? Royalty streams? Majors with dividends? How is an investor to determine the best way to leverage the upside of a beaten up metals market? The Gold Report hosted a standing-room-only fund manager panel at the Silver Summit in San Francisco featuring insights from three very different points of view. Axel Merk, president and CIO of Merk Investments, focuses on gold and currency investing. Robert Mullin is co-founder of Real Assets Equity Income Funds and focuses largely on producing mining companies. Greg Orrell is the president and portfolio manager of the OCM Gold Fund and invests across all sectors of the precious metals industry, including junior producers and exploration and development companies. All three see unique opportunities right now for creating a portfolio that captures a renewed focus from mining executives on shareholder interests.
Mining Companies Sow Karma Where It Is Needed Most (12/02/2015)
In the community of Santa Rosa de Osos, Colombia, 70 more people are now mobile, thanks to the generosity of Red Eagle Mining and the Lookout Ridge Wheelchair Foundation.
Gold COTs at Their Most Positive in 14 Years (12/01/2015)
There is no need to mince words or beat around the bush with this update. The latest COTs for gold released yesterday showed another marked improvement so that they are now strongly and unequivocally bullish—in fact they are at their most positive since late 2001.
|"I expect GBR to get taken out at multiples of this share price."|
|"Drill results highlight the upside potential at MAG's Juanicipio."|
|"We came away from a site visit to LIO's Tuvatu very impressed."|
|"PVG's Brucejack continues to deliver strong free cash flows."|