Buy Gold Stocks or ETF?
Should you be buying Gold Stocks or ETF (Exchange Traded Funds)? Personally I have found that an ETF which holds a basket of Gold stocks safer and yields good returns. I would rather invest in Gold ETF especially if you have less than 10 years’ experience in the stock market. I really find GDX is one of the best ETFs.
If wanting to buy gold stocks, you may want to consider Goldcorp (GG) as it is the largest gold mining company in the world (market cap $22 billion) and an expected earnings growth rate at 40%. Its balance sheet is strong.
Goldcorp holds interests in 12 currently-producing mines, as well as 8 projects in development. It produced 2.3 million ounces of gold in 2012 and expects to produce 2.5 to 2.8 million in 2013, ramping up to 4 million in 2016. All of its properties are in stable jurisdictions, mostly Canada, the U.S. and Mexico. It has grown proven & probable reserves 9 years in a row. The price of gold from 2008 - 2013 is shown below.
Is it the right time to invest in Gold?
Gold stocks have over the last 30 days done very well rising about 20%. Is it the right time to invest in gold. Opinions are mixed. The technical indicators seem to predict that gold may have bottomed for the moment. Please refer to these articles. Please seek professional advice before investing. Personal disclosure: I am invested in gold.