-- Posted Monday, 1 June 2009 | Digg This Article | | Source: GoldSeek.com
The HUI Gold BUGS Index stands for the AMEX Basket of Unhedged Gold Stocks index.The symbol of the index is HUI.There are 15 stocks in the index as listed below.All of the stocks have either completely unhedged gold production or not more than 1.5 years of gold production hedged.The market caps of these miners range from ¼ billion to 27 billion USD.The advantage to no hedge (or low hedge) on the future production is that it allows for the miner to reap the upward gain in the gold price.The disadvantage is that if the gold price drops the miner is subject to the down turns in the price of its only product for sale.However, if you believe in a strong bull market in gold then you should invest in the BUGS.The index is rebalanced quarterly.The listing below shows the miners in the index as well as their weighting in the index.
Index Components as of: 05/29/09
Company Name
Symbol
% Weighting
Goldcorp Inc
GG
14.33%
Barrick Gold
ABX
14.03%
Newmont Mining
NEM
9.07%
Hecla Mining
HL
6.95%
Coeur d'alene Mines
CDE
6.88%
Randgold Resources Ads
GOLD
5.54%
Iamgoldcorp
IAG
5.47%
Yamana Gold
AUY
5.19%
Comp de Minas Buenaventura Ads
BVN
5.12%
Eldorado Gold Corp
EGO
4.98%
Anglogold Ashanti Ltd Ads
AU
4.67%
Kinross Gold
KGC
4.63%
Agnico Eagle Mines
AEM
4.53%
Gold Fields Ltd Adr
GFI
4.51%
Harmony Gold Mining Adr
HMY
4.09%
The HUI gold BUGS index bottomed out last fall and has made a remarkable rally this spring that has more than doubled its value. While the time to buy was last fall when there was blood in the streets there still may be time to buy the “dogs of the HUI”.
The chart below shows the latest price of each member of the HUI as well as their 52 week high and low.CDE is currently selling at only 44% of its 52 week high.HL is currently selling at only 37% of its 52 week high.Several of the HUI stocks are currently selling near their 52 week high.Of course my all time favorites of AEM and GG are both selling at 76% of their 52 week highs.While you can always buy all 15 stocks I recommend the four I have listed.My favorite two are selling at a discount while the first two are greatly discounted and have a lot of catching up.
HUI -Derived from Market data
As of May 31, 2009
Company
Symbol
Latest Price
Prev Close
Change
Time
High
Low
Volume
52 Weeks
Net
%
High
Low
Agnico Eagle Mines Ltd
NYSE:AEM
61.86 USD
58.96
+2.90
+4.92%
29May09
62.92
60.63
969300
80.79
21.55
Anglogold Ashanti Ltd
NYSE:AU
42.33 USD
40.85
+1.48
+3.62%
29May09
43.16
41.50
860900
43.16
13.40
Barrick Gold Corp
NYSE:ABX
38.08 USD
37.18
+0.90
+2.42%
29May09
38.96
37.79
1932800
52.47
17.95
Coeur D Alene Mines Corp
NYSE:CDE
14.77 USD
13.95
+0.82
+5.88%
29May09
15.02
14.33
4325683
33.60
3.60
Compania de Minas Buenaventura
NYSE:BVN
28.33 USD
28.22
+0.11
+0.39%
29May09
29.44
28.11
2073250
35.67
9.00
Eldorado Gold Corp Ltd
AMEX:EGO
9.92 USD
9.73
+0.19
+1.95%
29May09
10.42
9.92
332200
10.42
2.38
Gold Fields Ltd
NYSE:GFI
13.58 USD
13.08
+0.50
+3.82%
29May09
13.98
13.28
1251700
13.98
4.64
Goldcorp Inc
NYSE:GG
39.73 USD
38.78
+0.95
+2.45%
29May09
40.75
39.40
1762600
52.60
13.99
Harmony Gold Mining Co Ltd
AMEX:HMY
12.10 USD
11.91
+0.19
+1.60%
29May09
12.39
11.84
935900
13.25
5.47
Hecla Mining Co
NYSE:HL
3.71 USD
3.46
+0.25
+7.23%
29May09
3.76
3.60
1893900
9.98
1.03
Iamgold Corp
NYSE:IAG
11.27 USD
10.88
+0.39
+3.59%
29May09
11.40
11.00
760600
11.40
2.35
Kinross Gold Corp
NYSE:KGC
20.22 USD
19.52
+0.70
+3.59%
29May09
20.49
19.91
1456400
25.36
7.14
Newmont Mining Corp
NYSE:NEM
48.87 USD
47.35
+1.52
+3.21%
29May09
49.18
47.96
2926700
53.76
21.18
Randgold Resources Ltd
NASDAQNM:GOLD
69.81 USD
69.88
-0.07
-0.10%
29May09
73.27
69.39
2207207
73.27
22.28
Yamana Gold Inc
NYSE:AUY
11.77 USD
11.14
+0.63
+5.66%
29May09
11.83
11.44
3175300
17.00
3.31
Of course there is no substitute for silver and gold held in your own “central bank”. Take possession of your silver and gold outside the banking system if you are in a position to do so. However, if your funds are captive inside your 401K or retirement system then consider the four stocks listed above. These will allow you to take advantage of the silver and gold bull market without watching it pass you by.
Remember to never invest more than 2% of your portfolio in a single mining stock. In all fairness I am compelled to disclose that I own several of the stocks listed above. I am also compelled to advise that I am by no means considered an investment advisor. As my daughter so artfully points out from time to time, “If you are such as expert in money, why don’t we have more of it?”
Larry LaBorde, Silver Trading Company
Larry lives in the occupied South with his wife Puddy and sells precious metals at the Silver Trading Company. Larry can be contacted at llabord@aol.com. You can view his web site at www.silvertrading.net.
To order advance copies of Larry’s new book, “Investing Without a Net” just go to his website at www.silvertrading.net and scroll down to the middle of the home page and click on the link.
Owner of Silver Trading Company: Silver Trading Company is committed to providing silver and gold at the most reasonable price directly to our customers. We strive to do this by keeping our overhead low and our volume high.
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