Gold's flying. Think big EGO -- think Eldorado Gold (EGO - commentary - Trade Now). This one's the cheapest producer of gold -- extraction costs of just $300 an ounce and going lower, maybe much lower, because the cost of the big projects are sunk and now the harvest is ready. When I spoke to Paul Wright last night, the fantastic CEO, I was blown away by how well the company's doing. No wonder it's totally outperforming gold, giving you a much better return than the metal itself.
But what I thought was most interesting was the possible sale or restart of its gigantic iron mine in South America. Iron had collapsed, but now, like copper, it's roaring. We have noticed a pattern of the Chinese buying actual mines and companies. Talk about a wild card for this $3.8 billion company. It could sell this mine at a nifty profit and have a war chest and accelerate its properties that produce the cheapest gold in China.
Remember I like the bullion best (store it in a depository institution), then I like the Gold Trust (GLD - commentary - Trade Now) and then EGO and Agnico Eagle (AEM - commentary - Trade Now). But now, after speaking to Wright last night, I know that EGO just jumps to the top of the gold queue!
At the time of publication, Cramer had no positions in the stocks mentioned.
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Jim Cramer Blog Wary of Sentiment Indicators 8/13/2009 6:03 AM EDT I wonder if the predictive qualities of these metrics have been thrown out of whack.
Jim Cramer Blog China Keeps Two Industrials in Play 8/12/2009 4:49 PM EDT Despite drops in the freight index, Joy Global and Bucyrus keep rolling.
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