Blue chip gold/oil

[obiwan]

okay I have not bought any oil/gold for awhile.

Want a LT play on POG/PO oil, not futures based as unsure of time-frame. Are there any indexes available retail in australia that track POG/PO oil ? Any suggestions about co's which are a) unhedged b) large c) oz based d) proven management

I was thinking WPL for oil, don't know much about gold.

 

[markrmau]

Re: bluechip gold/ oil

http://www.futuresource.com/charts/...XEUUSMUL&s=&s=&s=&s=&p=D&v=15&b=BAR+&d=MEDIUM

I am tempted to say that oil is in a downtrend at the moment. I like OSH for oil but don't have any at the moment. With oil trending down, I personally wouldn't buy at $1.8. Could be wrong though.

For gold I have NCM, but I think it is trading close to fair value at the moment, so maybe not worth buying.

 

[obiwan]

Re: bluechip gold/ oil

what about woodside, lihir ??

 

[RichKid]

Re: bluechip gold/ oil

I think Lihir is hedged more than some of the others, maybe Newcrest as a proper Bluechip for gold (there aren't many, most are small to medium) but it is not cheap, probably fair value.
Equigold is another one.

For oil I suppose Woodside is as good as any but you'll have to do some research to see which stocks suit you, there's not guarantee that they'll rise when oil or gold does. Today's bluechip maybe next years dud??? Who knows?

 

[obiwan]

Re: bluechip gold/ oil

There is a gold index tracking stock in the US (XAU or AUG or something like that), has anyone tried that. Seems like a diversified, pure play on POG. I am guessing the exchange rate moves could be a problem with AUD appreciating.

 

[RichKid]

Re: bluechip gold/ oil

To me one of the issues is finding a co with very low production costs so costs around $200 or less per ounce will yield good profits even if gold falls a bit. Obviously there's more to it but that's a start.

 

[brerwallabi]

Re: bluechip gold/ oil

In regards to Lihir being a good buy for the future, tread carefully is my opinion. I have traded Lihir many times and have made some good profits, but longterm i have some doubts, they have had too many problems in the past and there is nothing yet to indicate they are over, the stock can change rapidlylow 90's to 1.21, 1.21 to high 90's and then back up to 1.30's and back down to 1.16 and all over a few months. It is heavily traded so mind. It can go down very quickly.