NovaGold Position Increased. Update to portfolio.

March 21st, 2012 | Posted by octafinance in Alternative Investments | Commodities | Currencies | Gold | Portfolio | Precious Metals | Stocks - (Comments Off)

Today I increased the portfolio’s Novagold position by 50% to 0.3% of the portfolio.  As Novagold declined about 20% since my initial purchase I have decided to add to the position as I find the stock even more undervalued now. The portfolio’s total exposure to precious metal stocks is now 1.8%.

I still believe that there is significant downside risk to gold, silver and precious metal stocks so I look forward to increasing the portfolio exposure if declines happen. I believe that the total exposure might go up to 5% until a final bottom is formed in this sector.

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Investment in Gold Miners, Gabriel Resources, Allied Nevada Gold and NovaGold

February 19th, 2012 | Posted by octafinance in Alternative Investments | Commodities | Currencies | Gold | Portfolio | Precious Metals | Stocks - (Comments Off)

On February 17, 2012, I bought shares of three gold miners: Gabriel Resources Ltd.  (GBU), Allied Nevada Gold Corp. (ANV) and NovaGold Resources Inc. (NG)

I want to emphasize that these purchases are a part of my portfolio as they are long-term investments and not trades. The allocation of capital is as follows: Gabriel Resources Ltd ~ 1.1% of my portfolio, Allied Nevada Gold ~ 0.4%, and Novagold Resources ~ 0.2%. My total exposure to precious metal stocks in the core portfolio is now 1.7%.

Currently the precious metal stocks are very cheap compared to the metal price. The gold bull market has a long way to go until it forms a bubble phase. The precious metal stocks that I bought have probably an upside of up to 400% long-term (3+ years). I still believe that gold will correct more, probably going to $1400/oz, or even $1200/oz, before resuming it’s uptrend. Still that didn’t stop me from doing these purchases because they are all unique and special situations that might go up significantly, no matter what the price of gold does.

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