Old Habits Die Hard
Isn’t that the truth?
Against my better judgement (that in itself, is a bad old habit), I’m going to make a short comment about gold and speak about one of the two remaining individual stocks I own (despite swearing up and down I wouldn’t do so anymore – thank God for His mercy and forgiveness).
Almost three full years removed from the metals and mining industry (what’s left of it that I once knew), I spend 99.9% less time on metals and mining than I did when it was my main livelihood (I can just hear old critics “thanking their lucky stars I do” – and that’s just among family members-lol).
Take the two things I love the most in the world, my wife and daughter, and tell me their return to me depends on what performs better (for the next one, three or five years from today on) gold or the U.S. stock market – I wouldn’t hesitate to pick gold. IMHO, it has at the maximum, $150 downside, and $500 to $1,000 upside in the next one to five years.
While the U.S. stock market could still trend higher into 2017, I would risk my two greatest loves it will be unable to come close to matching gold’s performance looking past the next month or two.
I will try to go into more detail in my New Year’s commentary; but for now, this old former soothsayer would be a buyer now and use any further weakness strictly as buying opportunities.
I could stop there and likely not create many new critics if I end up wrong, but the glutton for punishment that I am, I will now speak about a highly speculative gold mining stock (Remember, I believe the word speculation was created by Wall Street so not to use the word that truly describes what it is – gambling). If you can truly afford to lose part or all your principle, and suffer the great anguish that comes with it, I like to suggest you take “crapshoot”, capital only and consider using it to become a shareholder in Teranga Gold at today’s price level (TGCDF-OTC $.57)
I first owned it because it bought out a previous company I had own on the belief it would be acquired (Oromin Explorations). I now am confident that this swoon in gold price and the company’s share price can accelerate a takeover, and the return from here can be anywhere from 100% to 200% in the next 6 to 12 months if I’m correct (which is by no means a certainly or anything remotely resembling it).
The main reason I speculate/gamble this can be the case is the fact that a major shareholder, who has already accumulate about 18% of the shares, is more likely to accelerate whatever plans he had – given how much cheaper the share price has become. I believe many who may not have sold just a couple months ago at much higher prices, would so now (and this party is extremely shrew and knows that too).
While management has dropped the ball more than once on production predictions and performance, which in-turn has caused many to take a “wait-n-see” attitude with them before becoming shareholders, it still has still done a credible job building the company overall. Given their assets, their location, and the belief gold itself now has a great risk/reward opportunity, we should see an overall sharp increase in mergers and acquisitions in the gold mining arena in 2017. Several reports have picked Teranga Gold has such a target when the share price was more than twice as high as it is now.
My family and I own over a million shares as of this writing.
Please know that could change tomorrow and not to expect further commentary on this matter in any certainty.
Gold Price $1,128
For more information on Teranga Gold, please visit http://www.terangagold.com/English/Homepage/default.aspx