Interesting article posted on DrudgeReport... W
Post# of 1850
Interesting article posted on DrudgeReport...
Why is Putin stockpiling gold?
"According to the World Gold Council, Russia has more than doubled its gold reserves in the past five years"
"...you might also take a look at shares in gold-mining companies. They are at, or near, historic lows when compared with the gold price. Contrarians may take that as a buying signal."
"Die-hard gold fans will tell you that the mining stocks involve all sorts of extra risks that you don’t get with the metal. Companies can be mismanaged. Mining costs go up. Countries can wallop miners with windfall taxes.
They’re right on all of the above. On the other hand, the equities are cheap and they do generate cash flow. Barrick Gold ABX+3.33% , the world’s biggest, trades at eight times forecast earnings, with a dividend yield of nearly 2%. Newmont NEM+2.34% is trading at 10 times forecast earnings, yielding 2.8%."
(0)
(0)