Gold – A Real Opportunity @ $1,368

Gold, The Yellow Metal

gold

A short note today on GOLD – to our premium subscribers.

A major Wall Street forecast this week that gold will plunge to $1,000 / ounce in value. Woe is me.

A major Bay St firm predicted this week that gold is in a temporary bulge up, and will fall soon.

If you do a Google search on whether gold will rise or fall, the opinions are as varied as can be. Pick a side of the topic, and you will have lots of supporters.

Pick a Bullion Fund, and listen to how they predict the end of the world is coming – buy gold. Pick a gold buff and listen to how gold will skyrocket in value.

CymorFund Subscribers Follow Facts

  • Gold fell almost 40%  from its high of $1,900.  Almost every overblown cycle throughout history has had a 40% correction. Gold has now had a 40% correction. It is not unusual and not unexpected to experienced traders for a correction of this magnitude.
  • Gold cannot and will not reach some ridiculous figure in value like $5,000 per ounce in the near future. Gold buffs are always standing on street corners and predicting the end of the world. It will not happen. The theory is that too much money has been printed, or there is unrest in Ukraine, or Syria, or Outer Mongolia, or wherever, that this disruption or that disruption will bring doom and gloom and gold is our only savior. Get real. The world will continue as it has always continued. There will be winners and losers.
  • Gold is rising slowly and steadily. Gold fell to under $1,200 per ounce, then rose, and then fell to the same support level again early this year. Then it started a slow but continual rise, and continues that rise. Gold closed today at $1,368. The proof is in the results. The law of supply and demand is slowly driving the price of gold upward.
  • The rise in the value of gold this year (2014) has been about 12%. 12% is a nice number, but won’t make you rich. Gold will probably continue over the medium term term to rise a bit in value, but there will not likely be any major breakout.
Gold Bounces Back
Gold Bounces Back

 

Gold Chart 5 yr March 2014

So How Can You Make Money in Gold?

LEVERAGE

Leverage is buying junior gold gold stocks that were “killed” in the 2013 meltdown. Stocks that are producing gold on a very profitable basis, but that that were discarded by the market. When the market moves away from a sector, all stocks fall. That is what happened to junior gold producers. 

While many of these stocks have dramatically increased in value, there is much more to come. As the price of gold rises a bit, and stabilizes, investors start to realize that the way to play gold is to buy junior producers where instead of a 12% rise in value, you can realize a 10-Bagger rise in value.

CymorFund has recommended some of these stocks, and will recommend a few more in due course. It is important not to be concentrated too much in any one sector, so we measure how much we allocate to the gold sector, or to any other sector. 

Watch for new gold recommendations from CymorFund.

Some of CymorFund’s Current Outstanding Hold Recommendations 

Detour Gold – Price Jan 1, 2014 – $4.10.  Current Price – $10.67 

Lake Shore Gold – Price Jan 1, 2014 – $0.46.  Current Price – $0.96

Premier Gold – Price Jan 1, 2014 – $1.40. Current Price – $2.48

Probe Mines – Price Jan 1, 2014 – $2.24. Current Price – $3.80

Romarco – Price Jan 1. 2014 – $0.43. Current Price – $0.90

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This information is not intended for use as a source of legal, business, accounting or financial advice. All readers are advised to seek services of competent professionals in the respective fields. No representation is made or implied that the reader will do as well from using the suggested techniques, strategies, methods, systems, or ideas; rather it is presented for news value only. We do not assume any responsibility or liability whatsoever for what you choose to do with this information. Use your own judgment. There are no guarantees.

We may or may not have positions in securities we name. In making an investment decision consider numerous factors such as portfolio balancing, timing, cash and capital reserves, asset allocation and other. Do your own research. Matters discussed contain forward-looking statements that are subject to risks and uncertainties and actual results may differ materially from any future results, performance or achievements expressed or implied.

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By Larry Cyna

Mr. Cyna is an accomplished investor in the Canadian public markets for over 20 years, and has managed significant portfolios. He is a financing specialist for private and public companies, and has expertise in real estate and debt obligations. He has assisted private companies accessing the public markets, has been a founding director of public companies and continues as a strategic consultant to selected clientele. He is and has been a director, a senior officer and on the Advisory Board of a number of TSX and TSXV public companies in the mining, resource, technology and telecommunications sectors, and the Founding Director of two CPC’s with qualifying transactions in mining and minerals. He was an honorary director of the Rotman School of Management MBA IMC program, has completed the Canadian Securities Institute Canadian Securities Course & Institute Conduct and Practices Handbook Course, was a former Manager under contract to an Investment Manager at BMO Nesbitt Burns, a roster mediator under the Ontario Mandatory Mediation Program, Toronto, a member of the Institute of Corporate Directors of Ontario, a member of the Upper Canada Dispute Resolution Group, and the Ontario Bar Association, Alternate Dispute Resolution section. He obtained his designation as a Chartered Accountant in Ontario in 1971 and was the recipient of the Founder’s Prize for academic achievement together with a cash reward. He became a CPA in the State of Illinois, USA in 1999 under IQEX with a grade of 92%. He is a Member of the Institute of Chartered Accountants of Ontario and the Canadian Institute of Chartered Accountants. He holds certificates in Advanced ADR & in Civil Justice in Ontario, Faculty of Law, University of Windsor, certificate in Dispute Resolution from the Ontario Institute of Chartered Accountants. Previous accomplishments are Manager of Cymor Risk Consultants LP specializing in Risk Management Assessment; CEO of Cyna & Associates specializing in mediation and ADR; Founder & Senior Partner of Cyna & Co, Chartered Accountants, a fully licensed and accredited public accountancy firm with international affiliations; and was a partner in a large public accountancy firm. Mr. Cyna is well known in the Canadian Investing community. He is invited to, and attends presentations given by public companies usually 3 or 4 times each week. These presentations are intended by the various hosting companies to present their inside story to sophisticated parties and Investment Managers for the purpose of attracting funding, or of making parties more interested in acquiring shares of those companies. Being a part of this keeps Mr. Cyna deeply involved in the current market and leads to numerous investment opportunities.