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HUI, Gold BUGS IndexLarry LaBorde The HUI Gold BUGS Index stands for the AMEX Basket of Unhedged Gold Stocks index. The symbol of the index is HUI. There are 15 stocks in the index as listed below. All of the stocks have either completely unhedged gold production or not more than 1.5 years of gold production hedged. The market caps of these miners range from ¼ billion to 27 billion USD. The advantage to no hedge (or low hedge) on the future production is that it allows for the miner to reap the upward gain in the gold price. The disadvantage is that if the gold price drops the miner is subject to the down turns in the price of its only product for sale. However, if you believe in a strong bull market in gold then you should invest in the BUGS. The index is rebalanced quarterly. The listing below shows the miners in the index as well as their weighting in the index.  The HUI gold BUGS index bottomed out last fall and has made a remarkable rally this spring that has more than doubled its value. While the time to buy was last fall when there was blood in the streets there still may be time to buy the "dogs of the HUI."  The chart below shows the latest price of each member of the HUI as well as their 52 week high and low. CDE is currently selling at only 44% of its 52 week high. HL is currently selling at only 37% of its 52 week high. Several of the HUI stocks are currently selling near their 52 week high. Of course my all time favorites of AEM and GG are both selling at 76% of their 52 week highs. While you can always buy all 15 stocks I recommend the four I have listed. My favorite two are selling at a discount while the first two are greatly discounted and have a lot of catching up to do.  Of course there is no substitute for silver and gold held in your own "central bank." Take possession of your silver and gold outside the banking system if you are in a position to do so. However, if your funds are captive inside your 401K or retirement system then consider the four stocks listed above. These will allow you to take advantage of the silver and gold bull market without watching it pass you by. Remember to never invest more than 2% of your portfolio in a single mining stock. In all fairness I am compelled to disclose that I own several of the stocks listed above. I am also compelled to advise that I am by no means considered an investment advisor. As my daughter so artfully points out from time to time, "If you are such as expert in money, why don't we have more of it?" [LOL] ### Larry LaBorde 321gold Ltd |
