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Cheap gold stocks: Approach with caution
If gold were a supermarket item, it would be in the marked-down aisle. The price has plunged by $500 (U.S.) an ounce, or more than 25 per cent, from the record high near $1,900 set two years ago.
Gold miners have fallen even more precipitously, many trading at a fraction of last year’s levels. Some of the bigger companies have fallen so much that they actually sport dividends that might tempt the yield-hungry investor. Consider that Barrick Gold Corp. shares yield 4.1 per cent and fellow giant Newmont Mining Corp. sports a 5-per-cent payout.
It’s clear gold investments are deeply discounted, but should shoppers pounce and load up the cart?
Many money managers remain skeptical, even at these seemingly cheap prices.
“I am not tempted to buy bullion at these levels,” comments Martin Braun, senior strategist at J.C. Clark Ltd., a Toronto investment firm.
Read More: http://www.stockgoldmarket.com/cheap-gold-stocks-approach-with-caution
