According to an article in the Huffington Post, Jon Corzine, ex-MF Global CEO is considering starting another hedge fund. You’ve got to be kidding me! This is the guy whose now bankrupt fund, MF Global, lost hundreds of millions of dollars in customer funds – and he was never prosecuted. None of the Wall Street big shots get prosecuted. Anyone foolish enough to give him a second chance deserves to lose their investment.
Just got a call from old friend, Backwoods Jack. He said that he was listening to Fox News and they said now was a great time to buy American Barrick and other major gold mining companies.
Andy Hoffman would strongly disagree! If you missed his latest rant yesterday, read it here on our blog. It’s on ETFs but he is even more down on the performance of the individual mining companies.
Since I sold my position in Tanzanian Royalty Exploration, Jim Sinclair’s company, the price has plunged by over one-third. Meanwhile, gold is down only 10%. If TRX is struggling, you can imagine what the rest of the bunch are doing. It did sell for over $9, at one time (as I recall) and is currently selling at $3.34. Mining shares have been horrible investments compared to physical gold and silver, at least for the last few years.
Personally, I like CEF as a SHORT-TERM holding for extra cash, especially now, with the price of gold and silver near a bottom and with the “premium” at an all-time low. But I would only do it if I already owned a large position of physicals, in my possession. Remember, when you cash out, you get dollars, not physical gold and silver. All you are doing is tracking the performance of the real metal, and also hoping that the “premium” will rise.