To you smart gold traders.....what shares to buy

Woke up to the Fortis fears....for sake of discussion, lets say we do get a doomsday scenario and we have a dollar meltdown ....what 3 gold companies are best to own for capital preservation and how much portfolio weight should they have...10%, 15%?

JSavage,

Traders Talk also has a Gold Board. There are several people over there who have been trading Gold and the Miners for years.

TT Gold Board

If there is going to be a stock market meltdown.....you want to buy the metal....don't touch any stocks.....they'll get hit in redemptions like anything else.

I agree with Teaparty's point.

ABX idea to monitor:

I have been on record since Wednesday watching the named price level on ABX ... and price is all to which I am speaking...I have no idea whether ABX could be one of the better picks in the sector

http://stockcharts.c...id=p08391586258

this chart version shows why I selected the 37.18 as relevant to show on the daily chart -

http://stockcharts.c...id=p57384971132

my Wednesday comment -

http://investorshub....age_id=32386773

I am willing to be short or long ABX depending on price action

longer time period shows the prior relevance of the 600day sma -

http://stockcharts.c...id=p45393339263

this chart may illustrate the liquidity outflow to which Teaparty refers -

http://stockcharts.c...id=p87429532465

Edited by hiker, 28 September 2008 - 11:48 AM.

JSavage, I have first hand knowledge of what Teaparty is talking about. I owned ASA (closed-end gold miners fund) back in '87 at the time of the crash. Gold went down some but ASA and the other Miners got decimated as people sold everything to meet margin calls. UBW

Not being a smart gold trader I have been consistent in stating that one should have 5-10% of their portfolio(s) in gold and silver. My preference is gold and silver US Eagles because they provide instant liquidity as they are universally recognized for authenticity and metal content. In addition they are easy to store vs bars of bullion.

IMO ubigw and teaparty have given excellent advice on what happens to precious metals stocks in a market meltdown. They are not any place to be for "capital preservation" which is why you want to own the physical metal.

In these days of such financial uncertainty it is wise to be out of debt. No loans of any kind. Cash will be king and debtors will be slaves. So first things first NO DEBT. Stay liquid. Reduce allocations to the overall stock market. If you are a good market timer stick to your system.

In case of a substantial crisis, ie; depression, uprising, etc. you need a place to live out of harm's way. You would need arable and timbered land with a self sufficient home. That means wind, solar, hydro, etc power and the wherewithal to do repairs or have someone you know that can do them for you.

Best to you.

wrong board but thanks for the tips....I've never been much of a gold person.... didn't even know how to buy coins until now.

Take delivery ....Its a lifetime trade as the USD heads into the dustbin of history. USAGOLD is awesome. I have bought gold and silver from them....Maples, philharmonics and eagles. No problems. Ask for George Cooper or Michael Kosares...tell em DR SVS sent ya ,