Forum Archive Index - April 2002

["Nick McCaw" <nick.mccaw@golearn.co.nz>]

It is surprising that there has been little mention of gold stocks in the forum. These have certainly been the strongest performers for several months now. From a medium to long term perspective, gold companies offer a very low risk investment. Many of these companies both in Australia and worldwide, have been selling gold at or below the cost of production. The result has been a series of mergers and some very lean and efficient mining companies. Each rise in gold price has an amplified effect on the earnings of these companies.

 

Personally, I would say there is a lot more upside to gold. For many investors, having some exposure to mid cap mining stocks over the next few years is probably worth considering. Mining stocks have already been extremely good to those traders who latched onto them earlier in the year. Those with a longer term outlook, might consider doing some research and buying quality companies as the gold price dips.

 

They do move fast, and they certainly require a tight investment plan, regardless of strategy.

 

Just some thoughts,

 

Regards Nick McCaw