Mish's Global Economic Trend Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Chispas	11/26/2004 4:30:18 PM
	Read Replies (2) of 116555

Martin Weiss on the gold ETF (martinweiss.com, 11-24-04) Q: I'm a large shareholder of Newmont Mining. I read that with the advent of the new ETFs which just started trading, the outlook for NEM appears to be somewhat bearish. What do you think? A: The new gold ETF has been a huge success. In just three days, GLD has $1.3 billion in assets and has already moved some 2.9 million ounces of gold into storage and OFF the market. The short-term answer is that the new gold ETF could steal away money from all gold mining shares — Newmont Mining included. However, we expect the long-term effect of the gold ETF to put significant upward pressure on gold prices. And higher gold prices are certainly good news for Newmont Mining. That is why Newmont Mining has barely budged since the gold ETF went public. Lastly, you need to remember that the tax rate of the gold ETF is 28% since all gains on it are treated as a collectible. The maximum tax rate of long-term captial gains on all gold mining shares is 15% — quite a difference. Keep your Newmont Mining — we think it is headed much, much higher.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next