-- Posted Friday, 13 February 2009 | | Source: GoldSeek.com
By Hubert Moolman
We are on the threshold of a major move in gold equities, which would probably lead the Gold index on the JSE (Johannesburg Stock Exchange) to all time highs of 7000 plus within the next 2 to three years. With GOLD on 2732 on 12 Feb 2009, this is where I want to invest my savings when I am not putting it in real money (by now most readers should know what is real money).
GOLD (JSE index) has just broken out of a down trend that started in 2006, and this breakout also, just about, almost signals a full recovery of gold equities from their fall that started in March 2008.
I hope you know by now that gold is in a bull market that could still run many years; therefore the 7000 estimate could be too low. It therefore follows naturally that your successful gold miners will follow the success of gold.
You see, gold mining which mostly makes up the companies listed under GOLD on the JSE is a business simply linked to gold, and therefore the so called price of gold. When the price of gold goes up the revenues of the gold miner goes up as long as he can maintain (at least) production. Just as important as his revenues, is off course his cost. He has got to keep his cost low and during times like these he gets a bit of help since many of his inputs are at much lower levels as compared to a year ago. If the miner is a low cost producer by way of the nature of his mining assets, know how etc. he is even in a better position to take advantage of the bull market in gold.
So, I simply look for low cost producers with good mining assets and management with a good track record when choosing my winners. Actually I chose most of them already in October/November 2008 at the bottom of the recent sell off. On top of this I have also picked up some junior miners, where the risk is far greater but the returns can be life changing.
After choosing these miners, I simply sit back and wait for the greatest wealth transfer (I will tell you more about this coming wealth transfer in my news letter) since Joseph son of Jacob was a co-ruler in Egypt.
The people who will lose out on this great coming wealth transfer is not the poor or the rich, but the illiterate. The illiterate when it comes to money and the economy. These illiterate people could be chartered accountants, doctors, lawyers whatever. Please read the rest of my articles to understand what illiteracy I am talking about.
Just make sure it is not you. You have got to educate yourself, you have got to become EL (economically literate); you have got to obtain knowledge.
My people are destroyed for lack of knowledge – Hosea 4:6
If you find this information useful, please forward it to friends or family. If you would like to subscribe to my news letter please send me an email. My news letter is free and I sent it out whenever I have something to “say”. I do accept donations though; email me for how.
To read more of my work you can read the rest of my blog: http://blogs.24.com/hubertmooolman
You can also find my articles at www.oreconsulting.co.za
May God bless you.
Hubert Moolman EL (Economically Literate)
You can email any comments to hubert@hgmandassociates.co.za
-- Posted Friday, 13 February 2009 | Digg This Article
| Source: GoldSeek.com
