Update Goldcorp (GG)
What you want in a gold stock is a company with rising reserves and falling costs. Goldcorp’s (GG) end of 2009 report on reserves shows that it’s still delivering rising reserves. We’ll see how the company is doing on costs when it reports after the market closes on March 11.
In 2009, the company said in February reserves grew by 5.3% to 48.8 million ounces from 46.3 million ounces at the end of 2008.
But that’s not all that Goldcorp mines.
The company also reported silver reserves of 1.3 billion ounces (up from 1.25 billion ounces at the end of the end of 2008), copper reserves of 1.23 billion pounds (down from 1.37 billion pounds at the end of 2008), lead reserves of 10.7 billion pounds (down from 12.5 billion pounds at the end of 2008) and zinc reserves of 27.8 billion pounds (down from 34.8 billion pounds).
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Jim,
Remember the movie “The Graduate”? I have one word for you: Palladium.
Is that is what is to be used in the new age batteries?
Palladium has far more uses than gold:
http://en.wikipedia.org/wiki/Palladium
The inherent problem with palladium is it’s “price cap”. If it rises too much, then it becomes more efficient to just use platinum for your product. However, platinum is currently running about $1100/ounce more than palladium, so it’ll be awhile before palladium gets there.
dgoedken,
Actually, rare earth metals are the ones for the new age batteries (although palladium is used in some batteries). Jim recommended a rare earth miner last year (Lynas Corp.), although had to sell it when it hit it’s target price much sooner than I think he expected.
EdMcGon, now I am curious. If “The Graduate” would be up to date, would “young Dustin” impress (apart from personal favors of course) “Mrs Robinson” by investing in Palladium bullion, mining stocks, or futures. And if so, which ones?
I’ll have to look into GG only been looking at FCX
interesting question, wfrank1999!
In the updated Graduate re-make, “Mrs. Robinson” would probably have been a flower child – not so much interested in ‘all that glitters’. As such, maybe she would be impressionable by ventures that do well by doing good. Biotech, perhaps. “Young Dustin” probably took HGSI public and then diversified his personal portfolio into a half-dozen new startups. As things stand, does HGSI really have room to run? For the patient, no doubt… But I’d also be patient to wait for a bit of a macro correction before taking a nibble. [I'm not a share-holder.] The big question is: what company is the ‘next HGSI’?
GG is so volatile. I have bought this in the past and made a little money off it. But, what worries me a little bit is the Return on Equity for GG, which is around 2.8%. Kind of low. Also, it’s 100 day moving average has a downward trajectory, but maybe that’s just the way it is with mining companies. Red Back Mining seems like a better bet, but I don’t know much about this sector.
dito, very good question francolargo. Looks like, I missed that HGSI run, too. ‘Made some dough in biotech some time ago but got burnt as well (stem cells). I wanted to find the next big ones then including riding the “Nanotech/Mems, Biofuels, and Solar” wagons … well, I am more careful these days, maybe too careful, but it’s still possible to make some dough with basic materials, including metals. If you like biotech, one area that has the potential to be the next big one, is tissue engineering ……
Tissue engineering is HARD! There is going to be a lot of ‘venture capital blood’ on the ground before anybody makes a buck selling engineered tissue. The distance between differentiated cells in a dish (or matrix) and successful therapies paid for by an insurer is way too great, IMPO. …not that I don’t wish them luck – diabetics have been holding out hope since the ’70′s for a transplant/engineered solution… I’m afraid I’m with you right now – much safer to dig up money buried in the earth than try to create it in the bio lab.
Bought gg a few years ago on aquisition talk. Has done very well thank you. It is true “luck is eternal”
wfrank1999,
I must admit, the only palladium miners I’ve seen had wretched financials, so I stay away from them. Right now, I’m only channeling PALL (a physical palladium ETF similar to GLD in function). I’m waiting for it to drop to $43, then I’ll buy more.
Concerning “The Graduate”. I find it remarkable that people still quote that line in this context.
That quick little scene was put into the movie to provide a glimpse at the banality of those people. Give a quick think about how “plastics” has done since. The gut was about a decade and a half late on his prognostication.
The whole movie was about a new generation leaving the old behind. Watch it again. It IS a good movie.
Ed. I hope for your sake that palladium is not the ne “plastics”
davcbr,
Actually, I was half-kidding when I made the movie reference. However, I do think palladium is a stronger investment than gold, because there is significant industrial use of palladium which can keep it from taking a nosedive. On the other hand, if gold wants to drop, look out below!