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Gold stocks… A value now?
That’s a good question. I would say ONLY VERY PROFITABLE gold stocks that are still producing… And ONLY at the right price.
Those that have not reached the gold and are not at all profitable will all fall to pieces. I will be reviewing the gold stocks we have covered. More on those soon. Smallcap gold stocks on the US exchanges and the TSX Venture… Ouch! Look out there. So many on the smallcaps and the TSX Venture are looking for gold but not quite finding it. Choose producers only. Choose those with bigger profits the last two years, as their revenue is still likely to drop by 50%. Can they survive that? Don’t pick those on the edge for sure. Catch the clearly profitable ones only when they have fallen completely. Don’t catch gold stocks until we seem to have a bottom in the spot gold price. Any gold stock with small profits is likely going to be a big loser – unless it has decent cash holdings. Those with low profits the past couple of years and no money in the bank are very likely to lose money and go bankrupt. Those currently not even producing have to get on the gold or they are done, done, done.
Gold Crash Full Coverage:
If you are looking for something to sell, I would say sell gold stocks that have lost money the past two years. If they are losing money, just sell them. Get out while some people see something positive. I don’t see anything positive with a gold stock that is losing presently.
One more note on gold stocks: I would say DON’T AVERAGE DOWN on those that are losing money. There is no advantage there. Listen to professional advice. Realize that this is my opinion. I don’t presently own gold stocks, so this is very easy for me to say. Still, it is what I believe. What about silver, copper, platinum and other precious metals? Read above. Substitute the word “gold” for your favorit metal. It’s really all the same.