Category Archives: Life Cycle of a Gold Mine

Happy New Year Recommendations for 2012

Happy New Year Recommendations for 2012

“1st Law of prognostication: For every prognosticator, there is an equal and opposite prognosticator. 

 

2nd Law of Prognostication: Both are likely to be wrong.

I have a friend who just ran into some new IRA money.  She asked for prognostications.  I began scribbling to her,

mentioning companies I’d talked to at the San Francisco Hard Asset Show at Thanksgiving.  Half way through the letter, I said, HEY, this could be a Happy New Year prediction letter.  And so it is.

So here’s my list of candidates for investing new money.  I would prefer them for a regular brokerage account where Uncle Sam can share in losses, but the safest ones can go into a pension account.  The rules are: NEVER invest in less than five (5) PM stocks.  Heck, 12 companies gets you 99% of the safety you’d get with a mutual fund.  Not all of these are precious metals companies, but the same rule applies.  Think about equal amounts of money in at least the first 5 or 6.

Prices are as of today, and may continue until January 2nd, when lots of new pension money may come in and ignite things.  Tax selling will have stopped in January…and the stomping of gold and silver prices will have ended for the year, so if you’re going to buy any of these, the best prices could be this week!  They’re all good companies; they just won’t be as attractively priced.

Most PM stocks are volatile, rather than risky.  I mean, many of these have suffered this year, but they’ve gone up over the past decade.  Gold and gold stocks will continue to go up, but they most assuredly will not go up in a straight line.  I put these in the order of most acceptable to my conservative friend, so the safest are at the top of the list.  So, consider the following selections: Continue Reading