What To Do Now?

marky
By marky on Sun, Jun 9, 2013 - 12:28pm

Good afternoon PP members,

Hoping to get some of your insights on what to do with money at this point.  I'm in my early 50s, have paid off the mortgage in a productive homestead (couple of acress of edibles).  I'm building practical skills and switched my professional work to part-time consulting to give me more time to do so.  I'm also starting a new and local business which has good potential for income over the longer-term.  So I feel the non-financial side of my life is in good shape. 

The financial side, OTH, is confused.  Right now I'm just sitting on a pile of cash, mostly in short-term treasuries, and not quite sure what to do with it.  I want to put it somewhere reasonably safe and get at least some income from it.  I've spoken with a couple of financial advisors with views sympathetic to PP, who essentially said to wait for a significant market decline then position to ride the next surge up.  I've also looked at Hussman funds - I find his message and writings consistent with my views on the world, but his track record does not seem super strong (I can understand not wanting market exposure at this point but don't see why that has to translate to losing money...).  Also, I used to own some gold ETFs, but sold them a while back when it seemed clear that they were subject to easy manipulation.  I haven't taken the plunge on physical PMs yet.  So, as I said, I'm confused and am probably just going to stay sitting in cash for a while, waiting for inspiration to strike. 

Any suggestions?  Thanks!

4 Comments

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3125
Glad you brought it up

I've been wondering the same thing myself.  In John Mauldin's Thoughts from the Frontline he claims that shorting the Japanese government is the trade of the century. 

http://www.mauldineconomics.com/frontlinethoughts/?utm_source=newsletter&utm_medium=email&utm_campaign=frontline

I've heard Kyle Bass say similar things.

My question is how does a retail investor do that?  My ignorance probably suggests I should stay far away from such bets, but would like to look into it anyway.

I've also been thinking about gold mining stocks lately, but you have to be careful.  They are notoriously volatile.

Doug

unadilla's picture
unadilla
Status: Member (Offline)
Joined: Feb 16 2009
Posts: 6
It's a bit of a conundrum,

It's a bit of a conundrum, ain't it…  I've asked similar questions in various venues and haven't received much in the way of satisfying/effective answers.  I sort of suspect that a lot of folks who are aware of the challenges to economic, energy and environmental systems currently unfolding intuitively understand that we're nearing the end of the paradigm in which financial wealth can be deployed into 'the market' with the expectation of customary returns.  Sure, it can still be done, and will probably still be possible for some time to come, but we all understand that the risks are mounting daily, and swift and complete collapse with an attendant total or near-total loss of whatever one may have invested in the fiat-based financial system is a real possibility.  There's always the argument that the 'smart money' will still be able to make huge gains even as the system crumbles, but if/when the monetary system fails, the 'money' part of 'smart money' will probably be as worthless as the 'dumb money'.  But at the same time, most of us are still at least partially embedded in this current, failing system- if we're lucky, still pulling in a paycheck, and if luckier still a paycheck that is big enough to leave us some surplus.  So what to do with that surplus, knowing that the yet dominant financial paradigm will inevitably collapse?  What does one do with 'extra money' when one understands that the 'value' of that money is a fiction?

Brady's picture
Brady
Status: Member (Offline)
Joined: Apr 24 2013
Posts: 3
No PMs?

Congrats, Marky, on getting your non-financial house in order. I aspire to a similar level of preparedness. 

You mentioned not having any physical PMs yet. It seems like an easy first step and a prudent way to store value outside the system. I believe Chris Martenson advocates for a small percentage of net worth in PMs, perhaps 10% or however much you're comfortable with. In my opinion, PMs are a better "investment" than the treasuries that you're sitting on, and heck, they're currently on sale. Some argue that taking delivery is the best way to own (as opposed to storing with a custodian). That's just one aspect of PM ownership you'll need to figure out before diving in, should you decide to do so. 

 

KennethPollinger's picture
KennethPollinger
Status: Platinum Member (Offline)
Joined: Sep 22 2010
Posts: 653
Mish Miner Basket

With all the talk about jumping back into gold/silver stocks (bottom yet?), I have copied

Mish's attempt to ease back in.  Do any of you have any comments, suggestions, etc?

Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
  • HMY: Harmony Gold Mining Company Limited: This is a South African mining company that stands to appreciate from its gold mining operations and also from a falling Rand.
  • SBGL - Sibanye Gold Limited: This is another South African miner and arguably my most speculative play. It is weighted accordingly at 2% of the basket.

Silver Stock Comments

  • SLW - Silver Wheaton Corp: SLW has a respectable PE and pays a reasonable dividend. It is a play on the price of silver which I expect to recover at some point.
  • PAAS - Pan American Silver Corp: PAAS is a major silver producer with a nice dividend yield of 4.10%. Pan American is trading at 68% of book value.

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

Mish Buys a Basket of Miners

Posted: 13 Jun 2013 09:00 PM PDT

Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.

Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%

General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.

Gold Stock Comments

  • NEM - Newmont Mining: My best value play and weighted accordingly. Price/book is a mere 1.19 and I have no reason to believe book value is overstated. Trailing PE is 10.04 and the dividend yield is 4.10%. What's not to like?
  • GG - Goldcorp: A major Canadian gold miner with a respectable PE and dividend. Goldcorp trades right at book value (.99 to be precise).
  • ABX - Barrick Gold Corporation: Another major Canadian gold miner with a respectable dividend. Earnings were negative last quarter due to writedowns. Dividend appears solid. Price/per book is a mere .88 (less than book value).
  • GDX - Market Vectors Gold Miners ETF. Rather than pick too many additional stocks and following them all, I put 10% of my basket into a gold miners ETF basket.  
  • GLDX - Global X Gold Explorers ETF. This is a speculative play on gold explorers. Some of the companies in the ETF are likely to go bust. Hopefully some will strike it big. I weighted this according to risk, with only 5% of my basket.
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