Loading ...What to Buy?
Any suggestions here as to what is a safe miner to buy with the most potential after all this ends and gold actually breaks out? I was thinking on the order of ABX, AUY, NEM kind of stock or even a royalty company like SAND. Anybody researched a real beaten down quality miner?
My advice (for what it’s worth) would be to spread your risk across at least half a dozen miners. A good starting place is the GDXJ constituents, or, for larger miners with bigger market caps, the GDX/HUI companies. Despite best efforts, it’s not that unusual for a company to go belly-up, so I avoid putting more into any one company than I could bear to lose. Gauging when to sell is another ball game, but, in general, I would say it might be worth taking profits after the next leg up, because a large pullback is likely into the early 2020’s, before a final blast up in 2025/26. That’s my strategy anyway.
I know its blasphemy but This time around I will be buying the Canadian ETFs
ZJG ( Juniors) and XGD ( Majors)…this spreads the risk for dummies .
If you’re looking for one miner, a lot of people would say KIrkland Lake Gold is about as “safe” as you can get in this notoriously risky and dangerous sector.
‘Safe’ and ‘most potential’ do not mutually coexist in any market unfortunately.
Thanks everyone. The money I have is from selling Kirkland Lake Gold. I was tempted to put it back in, but thought it’s already had quite a run.
I like senior gold producers like NEM and AEM (generates less free cashflow although), silver producers: PAAS.
ABX its production is declining and costs are rising, NEM is far more stable, I would own NEM long term, same about PAAS. Maybe AG too, but this company never produces any free cash flow, so not a long term candidate, only short term (6-12 months).
SAND is good company, but I do not like its Turkey exposure. Auy is cheap, but has still some debt to pay of, could be a nice one to own in a gold price rally.
I bought some AUY awhile back. It’s a slow mover, so I just forget it and let it simmer. ABX seems rather cheap, but I guess anything is a guess. Too bad this sector has floundered so long. The hope of easy riches is slowly fading.
Kirkland Lake is by far not only the best run of all the gold producers, but they are increasing grade as they mine.
I was stupid to sell KL. Will probably buy some back.
If you want to speculate and risk some money I like and hold a sizable position here (garwf). I think with the silver price moving north this could easily be a 5 bagger or more. Take a look at the basic setup here and ask why is it this cheap? https://seekingalpha.com/article/4129539-golden-arrow-resources-undervalued-catalysts
Thanks JS. Won’t touch it. I’ve lost so much with risky assets, I won’t do it again. But, that said, because I won’t buy it, I’m sure it will be a 10 bagger. So, you’re going to be rich.