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Gonzhouse (23.08)



Byline of the Day: GDP Slashed, Supercommittee Fail: Bernanke To Unleash QE3 In 2012

November 22, 2011 – Comments (0) | RELATED TICKERS: SLW , GPL , GG

  That's the byline on Forbes today under the article Fed Minutes: Bernanke Firmly In Control Of FOMC, QE3 Coming

Tie this to Obama's pledge to veto automatic cuts in spending and to get some sort of jobs billed passed.  What does this mean?

Get precious metals in your portfolio.  It may be your last chance.



Is 'Prosperity' within sight for Taseko?

August 29, 2011 – Comments (1) | RELATED TICKERS: TGB

From the company's website: 

August 26, 2011, Vancouver, BC - The Canadian Environmental Assessment Agency ("CEAA") has formally accepted Taseko Mines Limited's (TSX:TKO; AMEX:TGB) ("Taseko" or the "Company") project description for its proposed $1 billion New Prosperity gold-copper mine in British Columbia's central interior.   [more]



A Framework for evaluating Gold's price

August 10, 2011 – Comments (16) | RELATED TICKERS: GG , AEM , SLW

Since the surf is up on gold and bubbles discussion, I'll jump in.  What is the proper framework for evaluating the price of gold?  You can find no shortage of detailed quantitative analysis but I think it can be analyzed at a higher level and straightforward way.  First, what is a bubble?  An economic bubble is when the price of the asset exceeds its intrinsic/fundamental value.  It is demand driven by a temporary conformity with a new or changed social norm ("you gotta be invested in x"). Social norm conformity can be both positive and negative (assets can trade lower than intrinsic value).  A bubble pops and a crash occurs when the desire for conformity to the new or changed social norm disappears, and the price adjusts back down to its intrinsic or fundamental value.  [more]



Screaming Streamer Possibilities: the overlooked aspect

June 26, 2011 – Comments (0) | RELATED TICKERS: SLW , SAND , SLV

A 'Streamer' is essentially a finance company who has executed a commodity purchase agreement with the commodity producer.  In return for an upfront cash payment to the commodity producer, the Streamer receives the right to purchase a percentage of the commodity for a specified period (many times for the life of say, a mine) at a fixed price per unit.  Silver Wheaton is the big name in silver; Franco Nevada does gold and other precious metals;  now a group of Silver Wheaton (SLW) executives have branched off to form Sandstorm Gold (SNDXF) and also applied the business model to other commodities by forming Sandstorm Metals and Energy.  [more]



The Demise of traditional PC and Video Game makers

May 24, 2011 – Comments (3) | RELATED TICKERS: ATVI , MSFT , GOOGL

I recently gave up and sold my Activision (ATVI) stock, not because the company isn't well run but the stock went nowhere for the last 3 years. I justified the decision as having better places to put my money but it keeps nagging at me as to why it didn't do better, particularly since multiple TMF writers have argued persuasively that it is an undervalued play.  My conclusion:  the market is right, it's a dinosaur in slow decline.  [more]

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