Augusta Gold (G.TO)

Gold is going up because seasonals are good from now to late Sept/Oct.; you have concerns about overall markets peaking a little bit; geopolitical concerns. Major resistance not to be broken for the next couple of years. $1200-1300 area should be a floor. The world is not QE driven.

Last week they had a horrible report and stock went up. Once we get above the resistance level we will have an upward trend. Is outperforming the TSX. Has strong seasonality from end of July until beginning of October and looks like it will do it again.

Nobody cared about gold for the longest time and then, all of a sudden, that was what everybody talked about. Thinks we are going through the painful phase of maybe a bubble bursting. If you want good probabilities, there are better opportunities. She hasn’t owned gold in the last year.

This is the safe senior play in gold, in that it has lower costs and is the better one to own if you are not so sure of gold prices. He sees gold at $1300-$1400, in and about where we are now. Doesn’t see the $1000 anymore. It looks like the ETF selling is coming to an end.

Gold Stocks. Just above its 50 day moving average. It has very strong seasonality. Look at last year. It is happening again. It broke above a trading range as we got close to a period of seasonal strength. It is a buy and will go higher. Still significant potential.

Wants to sell this as a tax loss but would like a gold stock or gold ETF that he could use while waiting for the 30 days that’s needed to buy this back. If you think gold will go higher, which he doesn’t, then he would just buy SPDR Gold ETF (GLD-N) which may give you the US$ working for you.

It’s like catching a falling knife, but it has to stop somewhere. Chart is on Facebook. It bottomed in a logical place. The giant ETF, GLD-N is under tremendous selling pressure. The cost of production is quite high so producers are getting squeezed. Model $40.30 with a 50% upside. Thinks it will rally to $29.55 and stay there for a while. He want to leave time for a little bit of consolidation. They have to bottom sometime and value managers are sharpening their pencils. He wants positive transits to his EBV lines before buying.

Seasonality for gold stocks is from July 27 to September 25. Chart shows a downward trend and we are at the start of our seasonal period. He is expecting it to break through in an upward basis.

(Market Call Minute.) This is the best of the majors. A speculative buy if you could tell him that the price of gold has bottomed. He owns a small amount.

This stock has been having a technical bounce up to the 50 day moving average and then back down since October. If European countries come out and decide to sell their gold to meet their obligations, that pressure is going to continue to push down the price of gold.

What option strategy would you recommend for the big gold miners like this? You can do a strategy where you are writing calls on these things through the XGD but, the problem is, do you really like the fundamentals of gold? He tends not to do Covered Calls on golds and rarely on commodities.

Premier growth vehicle and can get through this bump. A good resource name to own. Look at the growth – they demonstrated ability to put on mines that will come on line. Cash flow is growing as new mines come into production. Good balance sheet.

He never calls a bottom. It is just a case of doing what the gold price has been doing. They could be shutting down mines and cutting production, but they are a lower cost producer. So this is a fine call in terms of gold, but at this time he would not want to make a call that we are at the bottom. If gold stays down they could shorten the life of mines by not going as deep and therefore cutting costs further.

In a bit of a rock and a hard place. Gold is falling off and there is really no positive catalyst. It is already trading at a discount but there is no reason for that discount to reduce. Wait for some positive uptick and then sell.

Gold companies being particularly hard hit but this company has a number of large viable projects on stream over the next few years. Feels their production profile is going to go up from about 2.5 million ounces today and could be well over 4 million ounces 2017-2018. Has always been a very efficient producer.