Taylor showing us some love again
Taylor comments on Sandstorm Gold
2012-11-29 16:00 MT - In the News
Jay Taylor, in the Nov. 13, 2012, edition of Gold, Energy & Tech Stocks, comments on Sandstorm Gold Ltd., recently $13.72. Mr. Taylor said buy five times from June 19, 2009, to Oct. 18, 2012, at prices ranging from 44 cents to $13.50 (the stock rolled back 1 for 5 in May, 2012). Assuming a $1,000 investment for each buy, the $5,000 position is now worth $16,134. Sandstorm is one of Mr. Taylor's favourite stocks; it takes up a hefty 15 per cent of his retirement portfolio. He is pleased because Sandstorm buys gold at prices fixed around just $400 an ounce. However he notes "Sandstorm, good as it is, could fall precipitously" in case equity markets collapse. The good news is it will likely continue making money even if its market cap drops. Mr. Taylor says in a market decline, all stocks will suffer, but Sandstorm will likely be better off than most. The editor says in an inflationary environment, Sandstorm would have an advantage because its gold costs will remain low, even while labour and other costs rise. However, if production costs rise faster than the price of gold, Sandstorm's vendors could shut down their mines. As for deflation, gold miners would reap gains as the real price of gold rises.