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Friday, July 17, 2009

Gold Stocks

There are many gold stock and gold share investment newsletters issued by various financial and gold analysts which one can study and follow.

Some of them are free and some are by paid subscription only. They come out on a regular basis usually monthly or weekly and in many cases, you can download a sample newsletter to see what it is like and if it is one you want to read on a regular basis.

Gold Stocks
Gold stocks are basically those shares or quantities of ownership in a company that administers gold, gold mining or gold in storage that one can buy and hold with a purpose of gaining a financial advantage, usually through the increased value of those stocks or shares or through dividends or a profit share issued to all holders of that stock or share.

Gold stocks can be much more volatile than gold prices as no two gold companies are the same. This adds many variables, such as companies management policy, mining diversification and other factors making it difficult to analyze the overall trend.

To quote Alan Snyder of Snyder Capital Management in San Francisco "Gold has all kinds of varying grades, meaning grams of gold per ton of rock." This means that the amount of gold obtainable from a ton of ore can vary depending on the quality of the grade of ore. Some ores might return ten grams of gold per ton while others may only return one gram. This affects the cost of production per ounce of course and so can have a big bearing on the overall cost of gold production for that company and is something that should be known about that mining company.

Let’s say for example it cost a company, $500 dollars per ounce to get an ounce of gold out of the ground. Provided the gold price remains well over the $500 mark per ounce then the company will make money. If the gold price, however, were to fall below $500 an ounce, for example less gold is obtainable per ton of ore processed, then the company will stop mining gold as its unprofitable. This is the operating leverage and this will vary with each company depending on their ore deposits and costs of operation in the country they are mining.

In addition, many gold mining companies, to offset potential losses, mine more than one mineral on the basis that they can gain on the swings that which they lose on the roundabout.

Companies must also list any reserves they have as deposits that are profitable to mine at current gold prices. So when the price of gold goes up, "a lot of ore that was too costly to mine at yesterday's price and therefore was not counted in reserves is now profitable and is counted in reserves," Snyder has pointed out.

Investors will value gold stocks and gold shares based on their price relative to reserves. When reserves go down, stock prices and shares will follow and when they go up so will the stock prices.

An additional complication when investing in gold stocks is that a company may ‘hedge’ or sell forward. This means it sells its production before it has happened. An example of this is selling a product before you have made it. This fixes the price of the product. A good example of this is just a couple of years ago at a time when gold prices were moving up, shares in Barrick Gold -- a large, stable company -- actually dropped because it had hedged a lot of its production. "The perception was, if gold goes up, Barrick won't benefit," says Lynn Russell, a gold-fund analyst at Morningstar. So it is important, when looking at investing in particular gold mining companies, to understand the management strategy as far as deposits and forward selling is concerned as this can greatly affect the value of the stock in that company.

Gold Stock Newsletters
So how you pick which is the best gold stock and investment letter to follow is a good question.

Most include information on:
Gold Stocks
Gold Shares
Gold stock investing
Gold stock prices
When gold stocks are going down
When gold stocks are going up
They can also include information on:
Australian gold stocks
American gold stocks
Canadian gold Stocks
Chinese gold stocks
African and South African gold stocks
Gold etf (exchange traded funds) shares
Junior gold stocks
Gold penny stocks
Gold stock warrants
Among other gold related issues and investment potentials.

All of the gold stock analysts are into predicting or trying to predict the future of gold stocks, gold shares and gold mining companies. Are gold stocks going up? Are gold stocks going down? What the best gold stock to invest in and similar issues.

These newsletters are covering, then, what the gold price going to do in months and years ahead and what sort of gold stocks or gold shares one should invest in. Also the gold stocks history and past performance as well as analysis by charts with the usual tools of technical analysis and fundamental approaches.

All of them, of course, display somewhere a disclaimer that they are not giving specific advice on investment or any financial advice. This is mainly to protect themselves from being sued by their readers or subscribers in the event that that subscriber or reader suffers a reversal of fortune or, in plain English, looses a lot of money as a result of following the advice or suggestions contained in the newsletter.

The write ups in this section of goldprice.org are basic information on the major gold stock and investment newsletters including who they are, a short bio or history, what they advise on and if the newsletter is free or needs to be subscribed to and if so how much it costs.

One should keep in mind that the discussions and look forwards in these newsletters are simply an opinion, informed of course, of the authors of the newsletter.

With that in mind many of them contain a lot of useful information, particularly about gold companies, what their management strategy is, their price history, any forward selling and much more. All very useful and can help one to make a decision about what to invest and where.

But the final decision will always rest with the investor, after all it is his or her money!


Gold Stock Newsletter Reviews

Here are some links to write up reviews to the more common and popular gold stock newsletters.
Aden Forecast
Big Gold
Dines Letter
Exploration Insights
Freemarket Gold Money Report
Fleckstein Newsletter
Global Watch Gold Forecaster
Gold World
Gold Newsletter
Gold Stock Bull Newsletter
Global Speculator
Ormetal Gold Stocks Newsletter
Harry Schultz Letter
Stealth Investor Newsletter
Taylors Gold Energy Tech Stocks
VR Gold Newsletter
Wall Street Window Newsletter
Zeal LLC Gold Stock Newsletter
Gold Investment
It should be born in mind that no one can predict the future when it comes to gold stocks and investments and all one can do is indicate potential or possible trends based on various factors that can affect the investment. In all cases one should consult with one’s own financial advisors before embarking on any investment as, not only is it important what one invests in and with how much, but also different types of investments have different tax implications and only you and your financial consultant understands your own tax position and what is the best investment for you.

One of the best investment vehicles for gold has always been the metal itself. There are no companies to take into consideration, no extra variables such as management strategies, other activities by companies that can affect their value and stock price.

But with the flow of information available from gold stock and investment newsletters, investors in gold can move further towards making an informed decision about how they would like to invest in gold.

Thursday, July 16, 2009

Gold Stock

Gold stock investment information is important when it comes to gold stock investing so here are some points to consider when investing in gold stocks and gold shares

Some people can unintentionally bypass the meanings of terms used in the gold stocks and gold shares and even investment arena. It pays to thoroughly understand all the terms before reading a gold stock newsletter in order to get a real understanding of what can sometimes be a very technical report on a company. So perhaps getting a list of the terms and words used and looking them up and getting really acquainted with their meaning would be a good start to gold stock investing.

Consult with your financial advisors on what is the best type of investment for you and who to invest in when it comes to gold stocks, gold shares, gold etfs and the like. In addition you will also need to take into consideration your tax position as some investments can incur a tax while others may give a tax advantage. If one is a professional investor it is also likely that subscriptions to gold stock newsletters would be tax deductible.

There are heaps of gold stock newsletters available which give up to date information about many of the gold mining companies and other forms of gold investment such as gold etfs (gold exchange traded funds), current gold stock prices, gold penny stocks and gold stock investing. One can review many samples of these and see which one provides the sort of information one is looking for.

Not putting put all one’s eggs in one basket. An old saying but a very true one. When it comes to gold stocks and gold shares, it is a good idea to diversify one’s holdings. Perhaps some gold shares in gold mining companies but certainly some in real gold not just gold stocks or shares.

The price of gold stocks can vary with each gold company and if an investor keeps all their investment in only one, and it fairs badly, they can lose a good portion of their investment capital.

By the same token, owning too many gold stocks can be a disadvantage. This can happen when an investor keeps buying every time they ‘hear’ of a good gold stock and can end up with 20, 30 or more different stocks, they can end up not so much with a diversified stock range but are simply matching gold stock indexes such as the XAU or HUI. Then if this index goes up or down, their investment will match that and so, in effect, their ‘extra’ diversification becomes one investment and subject to the dangers of that. Many wise gold stock investors apply the principle of “10”, which is to say, they stick to having no more than ten investments in the gold stock arena. There are two advantages to this. Any fall will not cause too much damage but if there is a healthy raise in the price then this can impact very well on a total portfolio. The other advantage is that it helps one to apply discipline. If one wants to buy further gold stock then one would re-examine the current portfolio and maybe even update it.

Ounce for ounce gold stocks are not always equal. The cost of producing an ounce of gold can vary not just with different companies but also with different drilling locations by the gold mining company. Even holes drilled by as little as 15 or 20 feet can make a difference in the cost of an ounce of gold. The US SEC require a mining company to report the results of only one type of ounce totals. Other factors, such as the economics of processing the ore for gold, usually done by an independent feasibility study, need to be looked at. These are then called the Proven and Probable Reserves and should be looked at when considering investing in gold mining stocks.

The most important point of course is to do a though due diligence on any gold stock or gold share one is contemplating investing in. The secret to any investment in gold is to really study as much gold stock investment information as you can.

Tuesday, July 14, 2009

Exploration Insights Newsletter

The Exploration Insights Newsletter is primarily concerned with gold mining and resource mining companies and stocks. Brent Cook is the editor and publisher.

The Exploration Insights newsletter was launched in February 2008, and selectively covers gold stocks and gold junior mining and exploration investment opportunities.

Brent Cook, is a well known a renowned Exploration Analyst and Geologist, with over twenty-five years of experience providing economic and geologic evaluations to major mining companies, resource funds and investors. Cook has worked in over 50 countries on almost every mineral deposit type ranging from grassroots projects through feasibility studies and bank audits. He was the principal Mining and Exploration Analyst to Global Resource Investments in 2003 where he provided analysis to retail brokers and two in-house funds.

Cook has earned a reputation for doing the research and spotting which junior gold mining and exploration companies have the best chance of beating the odds and where rocks have the greatest potential for producing profit. Cook is an experienced professional geologist who has examined properties in more than 60 countries as well as learning the investment side of the business from such masters as Rick Rule.

Brent originally inherited investor/analyst editor Paul van Eeden's newsletter and re-purposed it into Exploration Insights.

Exploration Insights offers the sophisticated speculator independent and unbiased analysis of the junior mining and exploration market. It is written and produced on a weekly basis by Brent Cook, a veteran geologist and mining stock analyst.

Brent Cook is often on the road. Some of that time away is spent speaking at resource and investment conferences across the world. You can Check out the events listing on the website to see where Brent is speaking next.

Subscription to the Exploration Insights Newsletter is a flat US$1,985 per annum. You can save 15% off the annual subscription rate by making use of their monthly auto-bill feature also. The monthly rate is US$140 charged to your Visa or MasterCard.

Exploration Insights offers a ground zero analysis of gold stocks and gold mining companies, with particular attention to up and coming junior gold stocks and so could be well worth an investment for the professional gold stocks investor.

Monday, July 13, 2009

VR GoldLetter Newsletter

Mark Leibovit, CIMA, AIF, is the originator of the VR Goldletter Newsletter. He is the Chief Market Strategist for VRtrader.Com. His technical expertise is in overall market timing and stock selection based upon his proprietary VOLUME REVERSAL (tm) methodology and Annual Forecast Model.

Mr. Leibovit has been a member of Midwest Options Exchange and the Chicago Board Options Exchange where he became a market maker in 1976. In 1979, after consulting with several regional brokerage firms, he left the floor and began publishing his newsletter, The Volume Reversal Survey, now called the VRtrader.com. He holds CIMA (Certified Investment Management Analyst) and AIF (Accredited Investment Fiduciary) designations and is a member of the Market Technicians Association (MTA), the National Association of Active Investment Managers (NAAIM) and the CFA Institute.
The website has been online since January 2009.

The VR GoldLetter Newsletter looks at short and long-term technical projections for Gold ETFs, Large and Small Cap Gold Stocks and physical precious metals, with some commentary and a number of useful charts. They provide an analysis of GLD, IAU, and DGP, including market corrections with DGZ and DZZ. In addition, they cover junior and senior gold and silver stocks and gold and silver shares. The approach is basically momentum-aided volatility trading, a strategy somewhat similar to that of Befriend the Trend Trading and Lenny Dykstra (although the latter uses long-only trades of deep-in-the-money call options).

The subscription plans available include:
A one month special offer for $62.50. After the one month a standard subscription pricing of $125 per month applies. All prices are subject to change.

A flat 12 month subscription for $1350.
If you don't wish to subscribe online, then you can call or fax or email your credit card information including the name on the card, the card number, the expiry date and Security Code (CCV), phone number and subscription length required.

The VR GoldLetter Newsletter arrives weekly via e-mail, with alert bulletins as market conditions dictate.

The VR GoldLetter Newsletter is an interesting variation on the usual investment strategy of investing in gold stocks and gold efts. It could be worth a look with a one month trial for a professional investor.

Sunday, July 12, 2009

WallStreetWindow Newsletter

The WallStreetWindow Newsletter is produced by Mike Swanson.

Swanson holds a Masters Degree in history from the University of Virginia and has been a professional trader for over 6 years. He is also the head of the Strategic Investment Committee for Daniel Capital Management.

WallStreetWindow has a predecessor. Began in 1999 a small investment newsletter known as The Stock Market Report, primarily distributed to a few close friends and business associates only. On the basis of that and Swanson's ability to find profitable investment opportunities, the WallStreetWindow was launched. With now over 16,000 subscribers. This success led to a rise in demand for access to his research, and Mike started the successful website WallStreetWindow, that now has over 16,000 subscribers. Since its formation, his popularity as "TraderMike" has continued to grow, and the accuracy and timeliness of his research has paid dividends for his many subscribers, particularly in gold stocks.

Mike Swanson was one of those that, in the first quarter of 2002, recommended gold stocks as a healthy future investment. This was a highly successful prediction as we know with gold stocks, the gold price and gold futures then rising over 150 percent, and Swanson still favors gold stocks and still promotes them.

A subscription to WallStreetWindow is free and each issue contains free investment ideas, market commentary, and educational material.

Membership is confidential and WallStreetWindow do not share or distribute your email with anyone. When you subscribe you receive an update on the gold market every week along with actionable investment ideas that you can turn into real money.
Some of the topics on the website include:
Stock Market News
Gold Stocks
Technical Analysis
Stock Picks
Emerging Markets
Gold Mining Stocks
Gold Futures
As a free newsletter with some useful information, advice and educational material, the WallStreetWindow is certainly worth a go.