Gold Q&A: Answers to our Subscribers' Most Pressing Questions

• What’s your opinion on point and figure charts?

  September 30, 2011, 12:00 PM

  Can you please comment on the usefulness and accuracy of point and figure charts? Do you use them?

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• What’s your take on gold mining company valuation?

  January 13, 2012, 12:00 PM

  What is your opinion on this method for gold mining company valuation?

  “Start with the number of ounces it has in the ground (a public number accessible to all of us), and simply divide that number into its market cap.

  For example, Kinross Gold Corporation (KGC), as of this writing, has a market cap of $18.821 billion, with 62.4 million ounces of gold reserves. By dividing the number of ounces into the market cap, we get a figure of $301.62.

  To this total we add the company’s cost to dig each ounce of gold out of the ground. In the case of Kinross, that’s $610. That makes the final figure $911.62 – the cost per ounce of gold you pay for buying Kinross stock. This represents a 49% discount on the current price of gold itself (based on the August 16 close of $1,787.10).”

  Then you can compare these discounts for other gold miners and buy the most undervalued ones.

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• When do you expect the USD to crash and gold to sky-rocket?

  December 20, 2008, 12:00 PM

  When do you expect the USD to crash and gold to sky-rocket? The dollar crash is being said for years now…

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• When does a junior stock come off the pink sheets?

  December 17, 2010, 12:00 PM

  When does a junior stock become eligible to come off the pink sheets? It would make it a lot easier to buy and sell. I’m thinking specifically about Great Panther Silver Ltd.

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• When should I close a position based on one of your indicators?

  December 21, 2012, 12:00 PM

  The short-term gold stock indicator has no stop-loss level. How should I interpret it? What if the underlying instrument keeps going down for a number of days? When should I get out?

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• When will the U.S. dollar crash?

  February 25, 2011, 12:00 PM

  When do you expect the USD to crash and gold to sky-rocket? The dollar crash is talked about for years now…

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• Where do you see a good entry point for the insurance part of my silver portfolio?

  October 12, 2012, 12:00 PM

  Maybe I am still too focused on the Hunt brothers, but assuming you can convince me to use silver as insurance, where do you see a good entry point? (I know that's a tough one)

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• Where is the effect of inflation coming into the gold market?

  October 5, 2012, 12:00 PM

  I am writing to get some perspective on why the price of gold is rising. Many commentators say that QE has contributed to the fear of inflation so many are running to gold. Yet QE has not produced inflation since the Federal Reserve is just buying financial notes and requiring the banks to hold more in reserves.

  Where is the effect of inflation coming into the gold market? Is it China? Is it the fear of a financial Armageddon? Is it the euro and Europeans who are dealing with a recession which has gotten out of hand? Why is the price of gold just going up when the price of oil is tame and under control? What am I missing? Why have you not written about the German banks that will collapse under the weight of European sovereign nations defaulting on their obligations? Every commentator says that the German government should help the southern European countries but who will help the German banks? I realize that the only voice of sanity is coming from your articles, arguing that the sky is not falling. Thank you.

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