What is the best source, easily understandable, for me to begin learning about gold stock? My searches have yielded an unbelieveable abundance of sites. Any suggestions from the brilliant, beautiful people out there? Thank you all for your help.
2006-10-28 00:58:11 · 3 answers · asked by reynwater 7 in Business & Finance ➔ Investing
That is one of the disadvantages of these search engines. They provide you perhaps with what you are looking for but trying to find it in the 100,000 results is nearly impossible.
I can give you a very brief summary of gold stocks. The keys are cost of production and reservers. As the price of gold rises, the companies with the highest cost of production tend to rise the fastest, because their operating margins are also rising the fastest. Proven reserves are important because once the gold is gone, the company is out of business. Not good for investors.
The North American company with the largest reserves and lowest cost of production is Barrick Gold ABX. Newmont Mining is close behind. But the grand daddy of gold mining stocks is Anglo American. Those 3 are the largest gold producers. When the price of gold goes up these stocks go up a little because the $10.00 increase in the price of gold only makes a little difference in their profitability. For example ABX has risen only about $5.00 a share during the past year, although in May it did get up $10.00 a share.
Now, lets look at a very marginal company in comparison. Glencalrn Gold GLE. The company is profitable but just barely. A lot of gold mining stock even at todays prices are not profitable. The low price for this stock this year was 0.32. The high price 1.00. The current price 0.55.
Fidelity has a wealth of research material on gold stocks. If you are interested in researching them, you can get a 30 day free trial to their research.
2006-10-28 01:43:12 · answer #1 · answered by Anonymous · 0⤊ 0⤋
For an online gold-focused daily newspaper with some good background articles: www.kitco.com
For interesting in-depth commentary by a Canadian authority on gold mining, one that doesn't mention specific mining companies either large or small but rather analyzes the macro-economics: http://www.paulvaneeden.com.
For some reason Yahoo is not picking up these addresses as links. Sorry.
2006-10-29 01:02:22 · answer #2 · answered by strath 3 · 0⤊ 0⤋
in all honesty you would be better off with an ETF like GLD that way you are not committed to one particular company.
2006-10-28 11:22:44 · answer #3 · answered by Anonymous · 0⤊ 0⤋