This Month We Are Watching Gold 12/15/04

Gold Investments

This month we are looking at GOLD ^HUI (Non-Hedged)
^ XAU (Hedged)


The components of the gold bugs index are nonhedged companies which means they do not sell forward unmined gold. This “non practice” allow these companies to take advantage of rising gold prices that have been trending up for the last 5 months. I think the best potential among these companies belongs to GOLDCORP (GG) who held back over 30% of its third quarter production to take advantage of future upward trending gold prices. The stock could run.


UPDATE January 10, 05

GOLDCORP has bought Wheaton River minerals in a two billion dollar share swap. Now, Glamis Gold is attempting a hostile 3.4 billion dollar take over of GOLDCORP. When the smoke clears, either Glamis or Goldcorp, both favorites, will be a GOOD BUY.

Presently, it appears that the upward trend in gold prices is taking a breather. A 50% retracement could find gold slipping from its $455.00 high to somewhere around $400.00 before the upward trend resumes. The retracement could afford better buy in prices (hopefully) than the $13.75 price today.

ADDITIONAL UPDATE March 03, 05

The main reason that Wheaton River is so ATTRACTIVE is the fact that it has the LOWEST production lost of gold in the industry. This fact almost insures profitability.