We are taking a brief look at gold and gold mining stocks again, updating our previous reports on the sector. In the latter article we took note of the fact that the HUI index had broken out to a slight new high, but also commented on the flaws we perceived with regards to this breakout at the time – notwithstanding the fact that gold stocks represented and continue to represent good value relative to gold itself.
For those adventuresome investors that prefer to stray from ETF indexes in the mining sector, disappointment has been the result if they had selected Newmont Mining Corporation for their portfolio.
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Silver Wheaton is the largest silver streaming company with a market capitalization of $12.20 billion. Over the last nine months, the company’s stock has posted a blockbuster performance.
In this Part II, we’ll explore the third point regarding the gold supply. The gold supply consists of two sources: (1) mine supply and (2) above-ground supply (previously mined gold).
As I write this in November 2010, gold is at a record high above $1350/oz. and silver is surging to a 30 year high of over $24/oz. Even good friends are now ribbing me that I must be wrong on the precious metals. But I’m not.
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