Like Gold? If So, Buy Gold-Mining Stocks – Kiplinger

Economic turmoil and a declining dollar are bullish for bullion. But the stocks are more attractive than the metal itself.

If you don’t own any gold, this may be a good time to add the yellow metal to your portfolio. Better yet, consider buying gold-mining stocks…

…buy gold stocks because their prices typically rise faster than the price of bullion. That’s due to leverage — because miners’ costs tend to be relatively stable, their profits are typically magnified by changes in the price of bullion. “If you expect gold to be strong, mining companies should reflect that strength and do a little better,” says Wasif Latif, vice-president of equity investments at USAA Funds, in San Antonio, Tex.

Read more: http://www.kiplinger.com/columns/picks/archive/buy-gold-mining-stocks.html

 

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