Monday, April 10, 2006

Gold Mining Stocks

With a volatile world out there and possible rising inflation, it might be tempting to take a look at gold at this time, especially with gold over $590 an ounce. During times like these, gold does very well historically. And with reports of Bush thinking of nuking Iran's nuclear capability, gold may sky rocket even further. But instead of gold itself, you may want to look at gold mining stocks.

Now there are risks involved in purchasing gold itself, so to me a good mining company is a safer bet. If you are thinking of investing in gold mining stocks, then it would be wise to use the following sites for your research: Gold-Stocks.com, Kitco and Zeal. Personally, for a somewhat fair valued gold mining stock, I like Kinross. I'll be adding it to my watchlist today.

4 comments:

JC Ernharth said...

IMO, the juniors are where the action will be. The gold majors have attracted so much obvious attention that the most value remaining will be in the smaller groups. Besides, the majors will want to expand their capacity to produce, and have not been heavy in the exploration side of things for years. The juniors are ripe for pick ups left and right should the bull continue as expected.

I also expect some of this froth to blow off the tops before things settle back into the long trend, but you never know…

goldguru said...
This comment has been removed by a blog administrator.
goldguru said...

I like mid-cap gold companies, so there goes the full range of opinions.

Majors are safer, but don't offer as much leverage.

Juniors often lack the cash needed to fund new mines and have a very low percentage of success. Pure gambling.

Mid-cap are often well-funded, offer some leverage, can be a wild-card for finding new resources and are often takeover targets of the majors. Some of my most successful stocks have been those that were bought out, such as WHT and WTZ.

I run a site with analysis, commentary, stock picks and strategies for profiting on the bull market in gold and silver...

www.goldstockbull.com

goldguru said...

I like mid-cap gold companies, so there goes the full range of opinions.

Majors are safer, but don't offer as much leverage.

Juniors often lack the cash needed to fund new mines and have a very low percentage of success. Pure gambling.

Mid-cap are often well-funded, offer some leverage, can be a wild-card for finding new resources and are often takeover targets of the majors. Some of my most successful stocks have been those that were bought out, such as WHT and WTZ.

I run a site with analysis, commentary, stock picks and strategies for profiting on the bull market in gold and silver...

www.goldstockbull.com