The securities of public corporations the main business of which is to mine for gold bullion are often referred to as “gold mining stocks.” The Dow Jones U.S. Gold Mining Index is a stock market index that is a weighted average of about 100 of the largest and most widely held gold mining stocks trading on major American stock exchanges. When the price of gold bullion is rising, the prices of gold mining stocks are rising. Similarly, when the price of gold bullion is declining, the prices of gold mining stocks are declining.
Gold mining companies are down-and-out, but John Paulson isn’t worried.The downfall in gold prices stems from sentiment rather than fundamentals. The artificially low interest rates since the Great Recession have sent the stock market and the bond market to extraordinary highs. Once markets embrace the long-awaited correction,. Read More
There’s been plenty of talk around here regarding gold and whether the precious metal is heading for $2,000. In my view, the current global risk will support and drive gold higher. (Read “The Stock Market Event You Need to Guard Against Right Now.”)For any gold investor, the question is whether to buy the physical bullion or gold. Read More