Gold stocks are a speculative stock market sector specifically dealing with publicly traded gold miners and exploration companies. They fall under the category of risk-capital equity securities and, because their underlying businesses are based on a resource commodity, are mostly considered to be speculative.
Up until recently, gold stocks have been good performers on the stock market, following the spot price of gold commensurately. The current market for gold stocks is subdued due to the significant price consolidation taking place in the gold market. In addition, higher production costs on an industry-wide basis have made profitability more difficult for many gold mining companies.
Gold stocks come in all sizes and market capitalizations. Some large-cap gold miners offer shareholders quarterly dividends. Many micro-cap explorations companies are just that; they raise money to explore for gold and then come back to raise additional money if they find the precious metal in sufficient deposits to warrant building a mine.
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
The last few years have not been kind to resource firms—especially to Barrick Gold Corporation (NYSE/ABX). But with China’s stock market crash and Greece halfway out of the eurozone, now may be the perfect moment to buy gold stocks.Gold prices have dropped 11.4% over the last 12 months. The yellow metal is a safe haven asset during. Read More
Over the next few months, you could make triple-digit gains in one of the world’s most hated commodities: gold.No, you won’t get rich quick. But as I’m about to show you, some of the world’s smartest investors have been quietly accumulating precious metals. And before the move is over, we could see prices more than double. Let. Read More
Today we finish the last trading day of May, and with it the first five months of this year are behind us. And what do we have to show for those five months?The two “biggest picture” items I follow for investors are stocks and gold. So far this year, the Dow Jones Industrial Average is up a meager 1.7%. Gold bullion prices are up about the. Read More