I like investing in commodities because they’re very simple to understand—it’s all about supply and demand. Naturally, I take a very strong interest in the increasing demand for gold coming out of China. You see, in the short run, the paper markets (leveraged traders) rule the day. In the longer run, the physical market is all that matters. In the past few months, we’ve ... Read More

According to a friend, “Since XAU was first invented in 1984, there have only been six days when the ratio of XAU to spot gold has been lower than it was at this morning’s bottom; all of those six days occurred during October-November 2008. The extreme unpopularity of gold mining shares is striking especially when compared with the eagerness of average people to consider ... Read More

Energold reported earnings about two weeks ago. Since then, I have received about a dozen emails asking “my thoughts.” Look, if I have something to say, I’ll say it. I didn’t even bother to delve into the earnings report until yesterday. If you live and die by one quarter, you will get chopped to pieces. I own things because of long term macro themes—not ... Read More

A few weeks back, my good friends over at Capitalist Exploits did a very long and detailed piece on Japan. For anyone who is living in a cave, the Japanese Yen is about to begin a multi-decade bear market. Of course, one could have made the same arguments a few years back and been painfully early. However, I am increasingly starting to think that the top ... Read More

What’s the most despised industry sector in the market today? Solar stocks? China frauds? Sure, you can average down on these to zero. What about a real industry that’s starting to finally hemorrhage cash flow? After a decade of continually disappointing investors, large cap gold stocks are finally cheap. The XAU has been consolidating for two years now. Is it ready to go higher? ... Read More

I had originally intended to post quarterly position updates. Somehow, that practice died when I moved to Mongolia. Since most of these companies do not change rapidly, I figure a yearly update is just as good. For the most part, I intend to hold onto these for years anyway. So here goes; Andean American Gold    (AAG: Canada)   Mention Price $0.56   Current Price $0.255   Return ... Read More

I don’t intend for AIC to be a site that picks bottoms, tops or price levels. However, this recent swoon in gold is enough for me to finally add to my position. If there is further weakness, I’ll continue adding more. Europe is blowing up, and I want my metals. Categories: Current Investments Positions Mentioned: none To receive email updates on new posts, use the ... Read More

In investing, you don’t make the big money by buying cheap stocks—frequently, these things destroy your capital. The market always pays for growth and in a no growth world, you must look further afield for new themes. Unfortunately, many of the best themes are priced for this growth. Who doesn’t realize that the US population is rapidly aging? Or that technology will race ahead? ... Read More

Yesterday, Fibrek Inc. (FBK: Canada) received an unsolicited takeover offer for its shares. This takeover substantially undervalues the company. As this offer is unsolicited, there’s a reasonable chance that the acquirer sweetens the offer in the next few months. Unfortunately, I think the best case scenario is that shareholders get a few pennies more. While you wait for those pennies, Mercer International (MERC: NASDAQ) ... Read More