written by Brian Hicks
compiled and edited by Dib Mossavi
I was talking with a trader friend of recently — in particular about the relationship between gold and gold stocks.
They’re two different animals, but you can learn a bit by comparing relative value… for instance, the amount of gold you get when buying shares in the miners versus the cost of gold itself.
My friend indicated that a thousand dollars gets you roughly 0.6 ounces of gold, while a thousand-dollar investment in a Gold Corporation would yield four ounces!
There are a handful of majors trading at similar discounts to the metal.
Lets get our minds right and be ready to buy.
Another sector we should be keeping a close eye on is the gold and silver majors. These are the senior-listed companies that actually mine the metal.
Many of the majors are trading at huge discounts relative to gold itself and are cheap in absolute terms as well.
We’re not ready to jump in yet, but the gold stock trade looks to be setting up nicely, so stay tuned…
A legendary buying opportunity is available by being a shareholder with Virgin Gold Mining Corporation …… good corporate governance as well as success tracking record …. www.vgmc.com