Doreen's not dazed by erratic markets

Q: How is the gold price performing right now and why should everyday investors care?

The article says gold is on the up and up, with the value per ounce climbing. For everyday investors, rising gold prices can boost the outlook for gold-focused stocks and portfolios — the piece notes that rising gold has been a clear positive for some share-race picks.

Q: What does the article say about market volatility and the short‑term outlook for investors?

The article characterizes markets as suffering a split‑personality disorder, meaning erratic and volatile. It notes last week brought a temporary reprieve but emphasizes uncertainty about what will happen next week — while also pointing out that gold has been a bright spot.

THERE'S gold in them thar hills! And we all want it. Now! And, really, who wouldn't when the markets are suffering from split-personality disorder?

By InvestSMART · 21 Aug 2011

By InvestSMART ·
21 Aug 2011

Comments

THERE'S gold in them thar hills! And we all want it. Now! And, really, who wouldn't when the markets are suffering from split-personality disorder?

Last week gave us some temporary reprieve but who knows what's going to happen next week? Doreen Daze is still in front so she might be a good person to talk to.

Meanwhile, gold is on the up and up. We'd give you a value per ounce but it will probably be vastly more by the time you read this sentence. But that's a good thing for reader Gemma Salteri. She may not have been able to push Doreen out of top spot but she's hanging on to second and nudging positive territory.

Ramelius Resources is her darling. It finished the third week of our share race at $11,495. Not bad in the volatile few weeks we've just had. Ramelius owns Australia's highest-grade gold mine with Wattle Dam and also bought Mount Magnet in July last year, which it expects to start producing gold this year.

In early August they were forecasting a 300 per cent increase in year-on-year profit but they might have been modest if the gold price edges closer to $US2000.

Sheba Investment Network traded places with Nick Coe from A Current Affair for third and fifth place. Sheba moved ahead despite their pick of QBE Insurance, which has been experiencing a decidedly underwhelming performance of late. It is trading at its lowest levels since 2004.

Richard Pritchard stays in last place but improved on his $84,435 total last week. TVN Corp has been dragging him down. Empire Oil & Gas and Legend Mining haven't helped either. There's only one week left but Richard needs a miracle to get him out of the doldrums.

Penny Pryor

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Frequently Asked Questions about this Article…

How is the gold price performing right now and why should everyday investors care?

The article says gold is "on the up and up," with the value per ounce climbing. For everyday investors, rising gold prices can boost the outlook for gold-focused stocks and portfolios — the piece notes that rising gold has been a clear positive for some share-race picks.

Who is Ramelius Resources and why are investors watching this gold company?

Ramelius Resources is highlighted as a strong performer in the article: it finished the third week of the share race at $11,495, owns Wattle Dam (described as Australia’s highest‑grade gold mine) and bought Mount Magnet last July. The company forecast a 300% year‑on‑year profit increase in early August, and the article suggests those forecasts could be modest if the gold price heads toward US$2,000.

What is Wattle Dam and what does owning it mean for Ramelius Resources?

Wattle Dam is identified in the article as Australia’s highest‑grade gold mine, and Ramelius Resources owns it. Owning a high‑grade operation like Wattle Dam is presented as a key reason the company is attractive in the current gold market environment.

When will Ramelius’s Mount Magnet asset start producing gold?

According to the article, Ramelius bought Mount Magnet in July last year and expects Mount Magnet to start producing gold this year.

How has QBE Insurance been performing recently, according to the article?

The article describes QBE Insurance’s recent performance as underwhelming and notes it is trading at its lowest levels since 2004.

What is the 'share race' mentioned in the article and who are the top contenders?

The share race is a running contest among contributors and their stock picks described in the article. Doreen Daze is in front, Gemma Salteri is holding second place, Ramelius Resources is a notable pick, Sheba Investment Network and Nick Coe swapped places in the standings, and Richard Pritchard is in last place with only one week left in the race.

Which stocks have been dragging portfolios down in the share race?

The article calls out TVN Corp as dragging Richard Pritchard down. It also says Empire Oil & Gas and Legend Mining haven’t helped his position.

What does the article say about market volatility and the short‑term outlook for investors?

The article characterizes markets as suffering a "split‑personality disorder," meaning erratic and volatile. It notes last week brought a temporary reprieve but emphasizes uncertainty about what will happen next week — while also pointing out that gold has been a bright spot.