With the world’s central banker’s printing money like mad, you would think investing in gold mining stocks would be a no-brainer.
Yet even with these misguided policies cheapening the dollar, the Market Vectors Gold Miners Index (NYSE: GDX) is down 40% from its peak last September and 48% from its all-time highs in 2011.
So why all the pain for investors?
Better yet, have any gold miners fallen so far they are screaming buys right now?
Here's the deal...
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My Two Favorite Gold Mining Stocks
Invest in Gold Mining Stocks While They're Still a Bargain
With gold prices high and likely to go higher, this might be the best time to invest in gold mining stocks.
Gold prices eked out a small gain Friday to close at $1,616.30 an ounce.
Comments from German Chancellor Angela Merkel Thursday supporting European Central Bank President Mario Draghi's crisis strategy to do "whatever it takes" to save the euro helped push gold prices higher.
More disappointing U.S. economic news in manufacturing and housing starts could also boost the yellow metal. The more the U.S. economy struggles, the more likely the U.S. Federal Reserve will launch another stimulus program that would favor higher gold prices.
For some investors, this adds to their dilemma of whether to invest in physical gold or gold equities.
History is on the side of physical gold. Citigroup Inc. (NYSE: C) has found that in the last five years, physical gold has outperformed global gold stocks by 120%.
But because gold stocks - and gold mining stocks in particular - have lagged gold prices, they have a lot of upside potential.
What's more, gold mining stocks offer something in return - dividends - in addition to benefiting from a continued rise in gold prices. Many commodities experts think gold prices could reach $2,000 an ounce or more within the next six months.
While not quite in bull mode, gold mining stocks have begun to stir of late. Here are three gold mining stocks worth a look for gold equity investors.
Gold prices eked out a small gain Friday to close at $1,616.30 an ounce.
Comments from German Chancellor Angela Merkel Thursday supporting European Central Bank President Mario Draghi's crisis strategy to do "whatever it takes" to save the euro helped push gold prices higher.
More disappointing U.S. economic news in manufacturing and housing starts could also boost the yellow metal. The more the U.S. economy struggles, the more likely the U.S. Federal Reserve will launch another stimulus program that would favor higher gold prices.
For some investors, this adds to their dilemma of whether to invest in physical gold or gold equities.
History is on the side of physical gold. Citigroup Inc. (NYSE: C) has found that in the last five years, physical gold has outperformed global gold stocks by 120%.
But because gold stocks - and gold mining stocks in particular - have lagged gold prices, they have a lot of upside potential.
What's more, gold mining stocks offer something in return - dividends - in addition to benefiting from a continued rise in gold prices. Many commodities experts think gold prices could reach $2,000 an ounce or more within the next six months.
While not quite in bull mode, gold mining stocks have begun to stir of late. Here are three gold mining stocks worth a look for gold equity investors.
With Gold Prices Flat, It's Time for Junior Miners to Shine
After a heady couple of years, the Midas metal has lost momentum. Gold prices have slipped about 2% in July to fall just below where they started in 2012.
And gold mining stocks have felt the brunt of it more than the metal itself.
For the past few years, the miners have been chasing the metal. The general expectation was that the mining stocks would eventually catch up to gold prices.
But now it looks like the metal is retreating to meet the miners.
The Market Vectors Junior Gold Miners (NYSE: GDXJ), an exchange-traded fund (ETF) that represents the junior miners, is off more than 25% since its inception in late 2009. The big miners represented by Market Vectors Gold Miners (NYSE: GDX) are essentially flat over the same period.
Yet gold prices, as measured by the SPDR Gold Trust (NYSE: GLD) are up almost 40% in the same general timeframe.
So where does that leave gold investors?
Well, it's probably not an ideal time to buy gold if it's pausing here (which it seems to be doing) after a multi-year rally.
And the big miners have their hands full as gold prices have stalled and gold demand has fallen. They may be fully valued, at least for the time being, since they won't be undertaking new projects or acquisitions until things get better or worse.
And gold mining stocks have felt the brunt of it more than the metal itself.
For the past few years, the miners have been chasing the metal. The general expectation was that the mining stocks would eventually catch up to gold prices.
But now it looks like the metal is retreating to meet the miners.
The Market Vectors Junior Gold Miners (NYSE: GDXJ), an exchange-traded fund (ETF) that represents the junior miners, is off more than 25% since its inception in late 2009. The big miners represented by Market Vectors Gold Miners (NYSE: GDX) are essentially flat over the same period.
Yet gold prices, as measured by the SPDR Gold Trust (NYSE: GLD) are up almost 40% in the same general timeframe.
So where does that leave gold investors?
Well, it's probably not an ideal time to buy gold if it's pausing here (which it seems to be doing) after a multi-year rally.
And the big miners have their hands full as gold prices have stalled and gold demand has fallen. They may be fully valued, at least for the time being, since they won't be undertaking new projects or acquisitions until things get better or worse.
Beat Gold Prices with a Junior Miner
That leaves the junior miners. They're undervalued enough that they still have some headroom, even given today's tepid metals market. And if things start to improve, they become buyout targets for the big miners.Cash in on the "Takeover Mania" in the Gold-Mining Sector With These Two Stocks
A "takeover mania" is about to hit gold-mining stocks.
And we're going to show you how to profit.
As many of you are already aware, The Wall Street Journal has just reported that stocks of gold-mining companies are dirt cheap.
Of course, Money Morning readers already knew that.
Since our experts told readers to buy gold back in late 2007 (when the "yellow metal" was trading at $770 an ounce), we've continued to ferret out the best gold-related investments.
If you heeded our advice, you were well-positioned to profit from this year's run-up in gold prices - and probably have a fatter portfolio to show for it.
If you didn't, however, don't fret. The stock market is offering investors a rare second chance.
And we're going to show you how to best benefit.
And we're going to show you how to profit.
As many of you are already aware, The Wall Street Journal has just reported that stocks of gold-mining companies are dirt cheap.
Of course, Money Morning readers already knew that.
Since our experts told readers to buy gold back in late 2007 (when the "yellow metal" was trading at $770 an ounce), we've continued to ferret out the best gold-related investments.
If you heeded our advice, you were well-positioned to profit from this year's run-up in gold prices - and probably have a fatter portfolio to show for it.
If you didn't, however, don't fret. The stock market is offering investors a rare second chance.
And we're going to show you how to best benefit.
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