I think that instead than try to find individual gold stock, why not invest in the exchange-traded fund. I mean.. the gold is something that doesn't lose value, like the dollar .. The trust owns gold rather than shares of gold-mining companies, so you get the appreciation of the price of the metal without the leverage of owning mining stocks (which move up more strongly than the price of gold itself in a rally) or the recent disadvantage of rising production costs that have damped results for gold-mining companies. With gold having moved up so strongly recently, it's hard to find a gold-mining stock that hasn't moved up like a rocket already, raising the possibility of an equally big move to the downside on profit-taking.
$74.19 (10/12/07)
