Profit in Gold Mines for 2012?

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Source: CNBC
Added: 01-05-2012
Tags: gold mine

welcome back to the fast money halftime report. scott is off the next couple days, so you're stuck with me. it's been a rough year for stocks. is there a catalyst for a big turnaround? joining us on the fast line is john hathaway. you're long the mining stocks, why? it was even braver when we started in 1998. there wasn't a lot of down side in the gold. i don't think there's a lot of down side here. why not? something thinks it is. the companies are very profitable, raising their dividends, and i think we're putting a low in the metal here, otherwise the media wouldn't be so interested i think the condition that is got gold to the price this summer -- i think they have all been shaken out are you at all interested in some of the miners? or just basically the law of big numbers making newmont the number one pick? we've had a larger number that generate a lot of devalue through exploration and development. there's too many to name, but that's a big component of our fund. so obviously those have been some of the ones, even in the past they've been the winners for you, are you picking those up now because of the dis mall performance they had this year? absolutely. mike murphy here. is there a level in gold that would make you change your mind? you know, i think to try to divine the truth of where gold is headed based on charts is a big mistake. you have to look at what is it that drives money into gold. basically it's snelling tiff interest rates, financial repression, lack the fiscal discipline and money printing. and, you know, at the end of the year, in a year like this, the shorts have had a field day, and they can go crazy in the last couple days of the year when there's no volume, so i don't think what gold is doing in this last two weeks is something you should take too i mean, it's not fun, but let's see what happens next year. understood, but from a fundamental standpoint, just trying to understand the thesis, as the miners are pulling the metal out of the ground, the fundamental thesis has to change if the metal's worth a lot less on the open market, right? that's true, but let's remember the metal is up 8% year over year, the companies are reporting record profits, and, you know, i hear all this stuff about costs going up and this, that and the other thing, but these companies have reported record profits, and if we are putting it low into the gold price here, then i think they're a strong buy. quickly on silver, though, i know you like silver wheaten, do you have a view on both, silver with more of an industrial use base. a better or worse investment than gold? i think silver is more speculative. it does have the industrial component. if we are we are headed into a recession, and i don't know the answer to that, but if we were, i think silver would be treated more harshly by the market than gold, but typically, if gold does well, silver usually catches up. jon hathaway, a pleasure. happy new year. thanks a lot. b.k., if you said to pick, a goal and equal amount of silver, which one would you pick up? more i would probably take the gold, put it in a safe and bile silver wheaten. they just simply resell the silver. i think that's the way -- i gave you one choice, and you took them both. why not? that's not the way the game works. i don't want any other currency. was that d . hey, auld lang syne e. we'll forget about it. i still don't know what that song means.

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