Strategies for Successful Gold Stock Investing – Part Four
Gold is now creeping up towards US$2,500 an ounce. In US trading last Friday, it was within a whisker of that, as market indices worldwide look like they’re setting up for a correction.
Times like these should spur investors to start paying attention to gold stocks. That’s because gold’s rising momentum could cause gold mining companies to deliver much better operating margins.
Given how gold stocks have trailed gold in the last three years (see the figure below), the prospect of outperforming returns makes them more enticing:
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Source: Internal Research |
As you can see over the last three years, returns on Australian gold stocks were more volatile than trading gold. Buying and holding gold would’ve been the more…
