środa, 12 maja 2010

A secular bull market in precious metals

This sector, especially gold, has been on a tear the last couple of years and is showing no signs of slowdown.
As you know, since I think the stock market is headed to new lifetime highs and that the US Dollar will remain strong there hasn't been a need or interest for me to get into precious metals.
It's not like I see more people use more gold or buy more gold (other than transferring the asset back and forth at a higher and higher premium, sort of like comic books).
Rather, gold is an inflation and currency hedge (counter to the declining dollar) and runs on perceived value.
Buying gold is like buying insurance to me, as insurance is also a form of hedging.
So I don't really see gold as a true investment but as a hedge.
With that said, you can still make money, potentially lots of it in the years ahead if Jim Rogers is correct, by "investing" in gold and silver.
Take a look at the gold etf GLD:

The silver etf SLV is also bullish, though it hasn't been quite as bullish as gold:

Here are some specific companies.
Goldcorp Inc. (GG):

Silver Wheaton Corp (SLW):

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