Gold mining stocks attractive in turbulent times

February 19, 2009 by · Leave a Comment
Filed under: Commodities News 

No doubt, in times of currency devaluation, gold asserts itself as a store of wealth and a secondary reserve currency.  I have followed this sector and it is following the 7 year bull trend that gold has shown.  It looks like between now and the end of next week, gold will make another shot to top $1,000/oz.  Time to protect your wealth before is gets debased through all our bailout and stimulus activity.


The prospects for equity markets and numerous sector indexes have dimmed during the global recession, but gold and the companies that mine it have not lost their luster.

With gold prices nudging their all-time high and energy and other costs falling, mining company profit margins are widening, making their shares attractive, analysts said on Thursday.

“Within the next year, we will see the gold stocks sell at significant premiums to traditional earnings measures or net asset value measures,” said Robert Lutts, chief investment officer of Cabot Money Management in Salem, Massachusetts, which manages $400 million of client assets.

“I have owned Barrick Gold for one reason only — because it has the biggest pile of gold in the ground,” Lutts said of the world’s biggest gold producer, Canada’s Barrick Gold

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