Gold mining stocks are those securities whose main business is to mine for gold bullion; and are often referred to as “gold mining stocks.” The Dow Jones U.S. Gold Mining Index is a stock market index that is a weighted average of about 100 of the largest and most widely held gold mining stocks trading on major American stock exchanges. When the price of gold bullion is rising, the prices of gold mining stocks are rising. Similarly, when the price of gold bullion is declining, the prices of gold mining stocks are declining.
Troubles in the global economy look to be strengthening, suggesting an economic slowdown may be following. Not only are the major economic hubs of the global economy showing signs of stress—something I have mentioned in these pages many times before—but we see demand slowing down as well. The Baltic Dry Index (BDI) gives us a general idea about how the demand in the global economy looks. At the very core, this index tracks the shipping price of raw materials. If the shipping prices increase, it suggests there’s increased demand in the global economy. If they decline, it’s not really a good sign. Please look a ... Read More
The one thing that savers and investors have these days is choice. More and more securities come to the marketplace every day and the kinds of investments available to individuals have really improved over the last few years. One of the most useful, more popular investment vehicles nowadays consists of exchange-traded funds, otherwise known as ETFs. An ETF is a security that trades on a stock exchange, but follows a commodity, an index, or a basket of assets (e.g. an index fund). ETFs can be very useful in diversifying your portfolio as well making a bet without using derivatives. Fo ... Read More
We have the fiscal cliff and national debt to contend with, along with jobs, manufacturing growth, and economic renewal. Moreover, there’s a recession in the eurozone that is negatively impacting the global economy, including China, Japan, and the U.S. My view is that stock values could falter in 2013, so you need a safe haven to park your capital, which many of you know is in gold. There has been plenty of talk in these pages regarding gold and whether the precious metal is headed for $2,000 an ounce. In my view, the current global risk will support and drive gold prices higher. For you, the question is whether to buy the physical bullion or gold mining stocks. For the average investor, I favor gold stocks over ... Read More