Gold as a hedge
I sold off a lot of my pure gold explorers but not gold producers. Well, all are still exploring, irrespective of the stage they are in, and some are starting production soon.
For a while now, gold as a hedge seems ridiculous as falling world economy made no logical effect on the price of gold. With a half-wit running the USA, trade will start to drop.
Suddenly with major volatility in the world stock markets and significant drops in the value of share prices, gold has reappeared as a hedge again! I could never sell off NST because it kept rising and it kept giving dividends. But neither could I buy more!
One of my bigger gold stock B2G is listed only in Toronto when it took over an Aussie miner/producer. It is too difficult to trade in it so I left it there.
Meanwhile GOR will be producing soon and that will make a nice impact on its share price.
Recently, I topped up, a small amount, in ALK. Surprise, surprise, no one seems to see it as a gold producer as its main target is other minerals. In fact, its share price has been falling! Price of gold is approaching USD$1300 per ounce and the AUD has fallen to its lowest in the last 2 years against the USD. So today, if it falls again, I would be a buyer!
posted by Club Mulgoa @ 1:35 PM
2 Comments:
Today, gold is up 1.1% to USD$1321 per oz and AUD$1 is down to USD$0.7093, enhancing the value of gold in AUD$.
The idiot in White House has just declared an emergency, wanting to grab money for his Mexican border wall. Strange but US markets went up! I think the traders are ignoring the fool and concentrating on the Chinese (trade dispute).
Today after drifting downward but stabilizing at under USD$1300, gold has started to move around USD$1320. Because of trade dispute with China, gold is used as a hedge again. In AUD, gold has increased in value due to AUD$1 dropping to USD$0.695.
I have kept my B2G (in Toronto), EVN, NST and GOR for hedging purposes; the latter might start to generate dividend soon, I hope.
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