Tag Archives: PIR

Gold Shares Bloodbath continues

Half of 2013 down, and now the so called ‘defensive blue chips’ are now falling heavily like the gold sector…


NCM is the largest gold stock on the ASX by far, and has clearly has some problems.

Here is a base 100 chart of the gold stocks in the ASX200

So in percentage terms, all the gold stocks have crashed together (and remember these are some of the better ones on the ASX)

and a closer look at the handful which I think will be good buys when the dust finally settles… this could still be a while off – (refer to the my Gold Shares Bloodbath post below this one)

2011 Annual Tipping Results


Each year, for about seven years now, I have participated in the Annual Shares.com.au Tipping Comp. These are the three stocks I selected for 2011, with the reasoning (the comp used 31/12/10 for opening prices):

posted: 2 January 2011

Always struggle to pick three.. narrowed it down to four, so DRM will have to miss out.

Three gold picks:

NST – Northern Star. NST bought the Paulson’s gold mine from IAU in mid-2010. The mine is performing above expectations. NST should be revalued. Currently has a low market cap of $116 million.

KRM – Kingrose Mining. A small gold producer in Indonesia which is has very low production costs (US$147 p/ounce). KRM should make significant profits throughout 2011 and has good exploration ground.

PIR – Papillon Resources. Small gold explorer in West Africa. Had a good run in 2010, should continue with more exploration success.

The results:
NST: + 101.3%

NST - Northern Star

KRM: - 0.7%

KRM - Kingrose Mining

PIR: - 0.9%

Papillion Resources

Overall I finished 1st out of 23 entrants, whereby I made an average gain for the three stock selections of + 33.3%.

Only one other entrant had a positive result from the three selections. This is how the group of 23 compared to the All Ords.

2011 Shares.com.au Annual Tipping Results

Interestingly, the forth pick I couldn’t include:
DRM was down only - 1.1%

In comparison:
* the Australian All Ords Index fell - 15.4% in 2011;
* physical gold (US/oz) increased by + 10.0% in 2011; and
* physical silver (US/oz) increased by - 10.4% in 2011.

The overall theme for stocks in 2011 was major volatility, a trend I expect to continue for many years to come. The Australian market, and most world stockmarkets are in a secular bear market which may last for another 10 to 15 years.

Money can be made in any market though, if you trade with discipline, by using trailing stop losses on the gains, and keeping the losses small.