Strategies for successful gold stock in vesting — Part two

Dear Reader,

The investment community generally believes that a rising price of gold leads to better returns on gold stocks.

I briefly alluded in the last article how this isn’t always the case. Gold mining companies are businesses. A successful business is profitable, generates cashflows to help it expand, and rewards its shareholders with dividends.

It’s possible for gold to rally and gold stocks to deliver negative returns during the same period. This has happened for much of the last three years.

Let me show you the relative performance of gold with these two gold stock indices:

The ASX Gold Index [ASX:XGD] that reflects the performance of producers and late-stage developers.

And my Speculative Gold Stocks Index, my very own in-house index that tracks the performance of selected explorers and early-stage developers.

Here they are below:

Notice gold drifted down from May to October 2022 before recovering, while gold stocks tumbled. Similarly, since June 2023, gold stocks traded in a tight range as gold’s rally gained momentum.

Why did gold stocks trail gold significantly?

And is there potential for gold stocks to close the gap with gold in the coming months?

Let me share what I discovered in the first 18 months of going all-in on gold producers in 2013–14.

Continue Reading...

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Dear Reader,

‘The crisis consists precisely in the fact that the old is dying and the new cannot be born; in this interregnum a great variety of morbid symptoms appear.’

Antonio Gramsci, while imprisoned by Mussolini

As expected, Biden has dropped out.

Fox:

‘President Biden announced Sunday that he will suspend his 2024 re-election campaign amid mounting pressure from his Democratic colleagues on Capitol Hill, top donors and Hollywood stars after a disastrous debate performance last month.’

One geezer gone. Another still in the race.

The real surprise was not that he dropped out. It was that they let him run at all.

Of course, the insiders knew it didn’t matter. Biden wasn’t really ‘running the country.’ He wasn’t coming up with ideas, plans or programs. He was just a standup... a cut-out... a suit... whose job was to keep the elites’ grift going.

No vetoes on budget bills. No qualms about supporting murderous regimes and lost cause wars overseas. And no resistance to loading the next generation with deadhead debt.

On none of those important matters did Joe Biden give the Establishment any cause for concern. He was a good politician. He was bought. He stayed bought. He was one of them. He was their man in the White House.

Kamala Harris? Just more proof that large-scale democracy is largely a fraud. Is she now the Democratic Party candidate for president because of her stellar record as a statesman...a scholar...a can-do politician...a captain of industry...a noted economist...a national healer...a Mandela...a Gandhi...a geo-strategist...a great general?

Continue Reading...