Two Ways To Play: Au Yeah!

Terry Woo  Jan 23, 2009 4:30 pm

Two Ways To Play: Au Yeah!
 
Strengthen your portfolio in good times and bad.
 

Gold and gold stocks are getting a lot of attention after their recent move higher. Now, according to Bloomberg, gold miners may take advantage of their rising stock prices by selling new shares to raise cash.  

Earlier this week, Canadian gold miner Kinross Gold (KGC) announced it would issue over $400 million in stock to shore up its balance sheet. This follows recent sales by Yamana (AUY) of $110 million and Agnico-Eagle Mines (AEM) of almost $290 million late last year.

It likewise seems like an opportune time for gold producers. In the last 3 months, while the S&P 500 has fallen nearly 8%, the Philadelphia Stock Exchange Gold & Silver index, a measure of 16 of the world’s largest gold producers, jumped over 60%.



For more, see Gold, Dollar Index Set for Major Move by Professor Fil Zucchi.

From the Bull Pen: We talked about the Gold ETF (GLD) this morning. Bulls can continue to play this stock, but be wary of short-term resistance near $90. Also up for consideration is the Gold Miners ETF (GDX).

From the Bear Cave: As Professor Zucchi mentioned, the Dollar Index (DXY) seems to be ready for a move lower. Vehicle of choice can be the Dollar Bearish Fund (UDN).
 

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