Buy gold stock
Gold as a hedging strategy and buy gold stock
Guess how much of gold is produced each year and that amount of gold is 2500 metric tones approximately and the demand is far greater than this supply. No doubt gold mining stocks are doing absolutely wonderful nowadays.
The estimated demand in the world is about five thousand ton.
India and china are the two biggest countries fuelling this demand. The reason is jewelry and gold as an investment. In India gold as jewelry is much more common than in America. This has spurred gold demand so much that demand far outstrips the supply.
The reason is simple can you imagine how much those Australian gold mining companies or the Chinese gold mining companies invest to mine gold. And how much do they charge for each ounce of gold.The last decade was the worst performing for the gold index called the HUI . But this decade has seen the gold demand rising and the HUI performing the best.
How to invest in gold?
You buy the gold exchange traded funds called the GDX ETF and that way you do not have to track the individual gold mining stocks. This GDX has about 34 companies which have interest in gold mining and or silver mining. It is also known as the market vectors Gold Mines ETF.
The other ETF is streetTRACKS Gold Shares (GLD)
Another one is iShares COMEX Gold Trust (IAU)
Then you can also buy gold in bullions and coins. There are a lot of dealers who sell gold bullion bars. These bars can weigh from 1 ounce to 100 ounces. Then you can buy American Eagle gold coins from a lot of brokerages.
You can invest in mutual funds which invest in metal companies and some part of their investment is in Gold.
Best Gold mining stocks are
I wanted to list the top 10 gold stocks but this list is much more encompassing of all types of gold mining companies.
These are the best stocks because as the miners they have the production cost which is locked down and whenever the gold prices reach the levels which are not heard of then these companies make wonderful profits.
GoldCorp(GG) -
Barrick Gold (ABX)
Newmont Mining(NEM)
IAMGOLD(IAG)
Harmony Gol(HMY)
Yamana Gold(AUY)
Eldorado Gold(EGO)
Gold Fields(GFI)
Anglogold Ashanti(AU)
Compañia de Minas Beunaventura(BVN)
Agnico-Eagle Mines(AEM)
Randgold Resources(GOLD)
Kinross Gold(KGC)
Placer Gold(PDG)
What is HUI?
HUI is the words best gold index and has the best performing 15 gold stocks. Each of these gold stocks is unique and hence it is better to research on your own a bit if you want to invest in the individual companies. This is an index maintained by AMEX. It is like a gold index much like Dow Jones index is to normal stocks.
Gold vs stocks market
In general the perception is that when the market is falling then investors rush to have gold in their portfolio so that they can have an effective hedge against the falling markets. On the other hand gold buying increases in the developing countries like India and China when these economies are doing good hence the direct correlation with stock market per se is not possible but yes gold as always shows a way out of the bear market.Most people invest in gold to get that hedge against inflation and also when the dollar is declining in value.
Another reason that gold stocks are rising is that in the last decade the central banks will dish out the gold to make up for the demand for gold. Since 2001 the central governments do not sell out gold which means that there is huge gap between gold supply and demand and that means the gold prices will be higher for a longer period of time.
The price of gold per ounce a few days ago was 940 and the HUI was at 350. The gold stocks are still the bets to invest in 2009 with the gold price as high.
Related posts:
- Gold stock investments – why gold is still a buy?
- Best Canadian Gold Stocks to buy now
- How to invest in gold for long term investments and for speculation purposes
- Investing in gold
- Gold Investments for the Effective diversification of your stock portfolio
Filed Under Uncategorized | Leave a Comment
Tagged With australian gold mining stocks, buy gold etf, buy gold mutual fund, buy gold stock, buy gold stocks, gold minin stocks, gold mining stocks, how to invest in gold, junior gold mining stocks
Comments
Leave a Reply