how to buy stock gold

I’m going to repeat that idea, because I’ve seen even smart, well-respected investment advisors get this wrong: Gold stocks are terrible long-term investments.
Any economic weakness in those major economies will trigger massive "E-Z Credit" stimulus, which will push the price of gold higher.
Gold stocks, as measured by the major gold-stock index (the "HUI"), are up 20%.
Here’s the thing: When folks are bullish on gold, they invest in gold mining stocks.
While gold miners might give you short-term gains, they’re not going to make for great long-term investments.
My colleague Jeff Clark is absolutely right that the Market Vectors Gold Miners ETF (NYSEARCA:GDX), the big gold-stock fund, is back in bull mode.
Brent noted that major miner Barrick Gold (NYSE:ABX) estimated a high-profile project would cost $600 million.
They contain less gold – down from 3.5 grams of gold per tonne of ore in 2005 to less than 2.5. Miners are concentrating on the higher-grade areas of their deposits.
Brent says the average all-in cost of gold mining is about $1,500 an ounce.
First, let me show you why I’m even considering the idea of buying gold stocks… Below is a three-year chart of gold.
Gold outperformed gold miners over the last 15 years (400% vs.
In addition to choosing a suitable stock broker for buying gold stocks online, there are certain other aspects that you need to prepare for.
The range of products available is not necessarily that important if you are only looking to buy gold stocks online as pretty much every online stock broker will let you buy stocks in publically listed companies.
Other factors that you might want to consider when deciding where to buy gold stocks online include the reputation of a broker, the ease of use and the range of products available.
To buy gold stocks online you will need to engage the services of an online stock broker.
Your plan should include – among other things – how much money you will spend on buying gold stocks, how you will choose which gold stocks to buy, and whether you will be investing in multiple gold related companies or just one.
They don’t offer much in the way of guidance or advice, but their fees are usually very low and these brokers are the cheapest way to buy gold stocks online.
If you are likely to be making other gold related investments online, such as gold ETFs or gold futures, then it of course makes sense to use an online stock broker where you can buy those investments too.
One thing you absolutely should be aware of before buying gold stocks online is the risks involved.
Buying gold stocks is a very viable way to invest in gold as their performance tends to be closely related to the price of gold – although there are also other factors to consider.
On this page, we provide you with some advice on buying gold stocks online.
Providing you are comfortable with making your own informed decisions about what gold stocks to buy and when, then it obviously makes a certain degree of sense to use a discount broker and pay lower fees.
As mentioned previously, Randgold’s stock price performance has been much better than most of its gold stock peers.
Looking at the historical performance of the SPDR Gold Shares ETF (NYSEARCA:GLD) as a proxy for gold stocks, it has significantly underperformed the S&P 500 Index by a huge margin on a 3- and 5-year basis.
On a valuation basis, the stock has a trailing P/E of 29 and a forward P/E of 19, which makes it look expensive, but keep in mind that valuation is based on a low earnings base which is likely to improve, should gold prices continue to increase.
However, given the increased geopolitical risk in the world, particularly in the Middle East and Ukraine, gold stocks are starting to move up in my rankings and there are several names that I’m starting to warm up to.
And Randgold Resources looks like an interesting name among gold stocks.
And last year, while the U.S. stock markets were on a tear, gold stocks declined more than 28%.
These superior management traits have resulted in strong performance relative to its gold stock peers.
Despite some investor wariness about investing in Africa, West Africa has been a very stable mining jurisdiction and has a lot of unexplored lands which contain high-grade gold deposits.
Looking at the historical performance of the SPDR Gold Shares ETF GLD, -0.19% as a proxy for gold stocks, it has significantly underperformed the S&P 500 Index on a three- and five-year basis.
However, given the increased geopolitical risk in the world, particularly in the Middle East and the Ukraine, gold stocks are starting to move up in my rankings, and there are several names that I am starting to warm up to.
On a valuation basis, the stock has a trailing P/E of 29 and a forward P/E of 19 which makes it look expensive, but keep in mind that valuation is based on a low earnings base which is likely to improve should gold prices continue to increase.
One name that looks interesting to me is Randgold Resources GOLD, -3.29% As you can see from the chart below, the stock just recently broke out to the upside.
Despite some investors’ wariness about investing in Africa, West Africa has been a very stable mining jurisdiction and has a lot of unexplored lands which contain high-grade gold deposits.
Last year, while the U.S. stock markets were on a tear, gold stocks declined more than 28%.
With geopolitical risks mounting, it is no wonder that many precious-metal stocks, and in particular gold stocks, have started to move up.
Gold stocks in general have underperformed the market the last few years.
Randgold explores and develops gold deposits in sub-Saharan West Africa.
That has affected the gold miners share prices in a big way, with the Market Vectors Gold Miners ETF (GDX) falling about 61% since hitting its peak.
According to investment Credit Suisse (CS), many of the issues facing he gold miners could be subsiding.
After exploding higher during the Great Recession and reaching about $2,000 per ounce, gold has been on a one-way ticket downwards.
Cost cutting is the name of the game for many of the stocks in the gold sector, while mine closures have helped reduce supplies.
Meanwhile, the current macro-economic sentiment bodes well for higher gold prices down the road.
Ditto for the Market Vectors Junior Gold Miners Fund, GDXJ, except its ceiling is at $45.84. Like GDX though, GDXJ has made two higher lows, and is poised to push off of its 50-day moving average line and punch through the resistance level.
More specifically, since all of these trading instruments hit a bottom last December, the Market Vectors Junior Gold Miners ETF (GDXJ) and Market Vectors Gold Miners ETF (GDX) have outpaced the advance from SPDR Gold Trust ETF (GLD).
After all of them hit long-term lows in late December, SPDR Gold Trust ETF has gained 8.6%, the Market Vectors Gold Miners ETF is up 33%, while the Market Vectors Junior Gold Miners ETF has advanced a stunning 45%.
While it’s true that gold prices themselves have been stagnant (on a net basis) for the better part of a year, that’s not a bad thing given where the commodity’s price has slipped into a rut.
The line in the sand is right around $27.76, where the Market Vectors Gold Miners Fund peaked in March and hit a wall earlier in the week.
Bottom line? While the optimism in support of gold mining stocks or ETFs like GDX or GDXJ right now may be a little overbaked, it’s not off-base.
It’s the first time in years that gold mining stocks have performed better than the commodity itself.
While it’s not a great price for gold, the chart says gold prices are going to stabilize around the $1300 area, slightly above the critical $1200 mark.
The $1200 price is crucial, as that’s the average break-even point for gold miners.
The point has been made repeatedly since June: Gold mining stocks, and junior gold mining stocks in particular, have been leading the way.
It’s important to understand the factors that affect gold’s value and the forms in which gold stock can be purchased.
He particularly enjoys reaching out to authors who are trying to share unique content but need a little help finding their way around wikiHow or writing fluently in English.
Investing in gold can be an advantageous stock market strategy, because gold increases in value due to a constant demand.
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Why the allure? The answer: Gold is the only real money, and its value cannot be changed or controlled by government fiat-the underlying reason for governments to go off the gold standard, unfortunately.Gold’s value will rise based on the pure forces of supply and demand, no matter what Mr.
The world economy may remain off the gold standard, but ultimately the tangible value of gold as the basis for real value-whether acknowledged by central banks or not-will never change.
Investing in gold through ownership of the metal itself, mutual funds, or gold mining stock provides the most direct counter to the dollar.
For people who are hesitant to invest in physical gold, but still desire some exposure to the precious metal, gold mutual funds provide a helpful alternative.
Considering the range of ways to get into the gold market, futures trading is the most complex and, while big fortunes could be made, they can also be lost in an instant.
Since your dollars are going to fall in value, gold is the best place to preserve value.
But which gold miners should you take a look at? How about miners that have had positive earnings estimate revisions and have recently surprised earnings? In other words, use the Zacks Rank to find a few nuggets.
Nine analysts have raised their earnings estimates for the current year, causing consensus to rise from 60 cents to $1.17 per share.  Next year’s picture looks equally as impressive with eight analysts raising their numbers, bringing consensus up from 78 cents to $1.22. The upward revisions come on the heels of a quarter where AEM beat estimates by 35 cents per share, reporting 60 cents versus expectations for 25 cents.
Some analysts believe the project could produce over 300,000 ounces of gold per year on average at a cash cost of $508 per ounce.
Last quarter, the company reported record production of 366,421 ounces of gold with total cash costs of $537 per ounce.
Many claims about abusive short-selling center around the London Bullion Market Association, the United States Federal Reserve System, and the banks HSBC and JPMorgan Chase.[37][38][39][40] Gold market observers have noted for many years that the price of gold tends to fall artificially at the start of New York trading.[41] Andrew Maguire, a former Goldman Sachs trader, went public in April 2010 with assertions of market manipulation by JPMorgan Chase and HSBC of the gold and silver markets, prompting a number of lawsuits.[42][43] Andrew Maguire was an independent trader at the time of these accusations and the CFTC has taken no action against any entity concerning precious metal price manipulation.
Most of the gold ever mined still exists in accessible form, such as bullion and mass-produced jewelry, with little value over its fine weight — and is thus potentially able to come back onto the gold market for the right price.[9][10] At the end of 2006, it was estimated that all the gold ever mined totalled 158,000 tonnes (156,000 long tons; 174,000 short tons).[11] The investor Warren Buffett has said that the total amount of gold in the world that is above-ground, could fit into a cube with sides of just 20 metres (66 ft).[12] However estimates for the amount of gold that exists today vary significantly and some have suggested the cube could be a lot smaller or larger.
For example if market signals indicate the possibility of prolonged inflation, central banks may decide to enact policies such as a hike in interest rates that could affect the price of gold in order to quell the inflation.
Other ounce designations — such as Mineralization, Measured, Indicated, Inferred, Resource, and Global Resource — have wider drill spacing so the ounces are less certain to exist and/or the deposit has not been shown to be economic.
Market Cap/Oz  =   market capitalization (number of shares times stock price) divided by total ounces of Proven and Probable Reserves or total ounces of production.
GSA’s third metric further refines these opportunities by examining the cash generated by company’s mines (gold price minus cash cost per ounce times the ounces produced) relative to its Market Cap, to yield its Operating Cash Flow (OCF) Multiple.
Subscribers and industry professionals alike recognize John Doody and his GSA team as the source of the most thorough technical, economic and operational analysis of gold mining stocks.
In a bewildering market of over 1,000 publicly traded gold stocks, we deliver clarity — and gains — out of chaos.
The title of GSA’s flagship newsletter — GSA Top10 — also sums up our unique investment approach that has an amazing — and verified track — record.
Precious metal mining stocks are a complete mystery to most of the financial and investing community because the vast majority of brokers and stock analysts have spent virtually zero time learning about them.
Still, both Stutland and Grisanti were quick to add that as long as strong economic data continue to rain cats and dogs on the gold market, they don’t have much conviction in any bullish thesis.
Peter Boockvar of the Lindsey Group argues that it's the perfect time to buy gold, with CNBC's Jackie DeAngelis and the Futures Now Traders.
"In 2011, gold had this $400 range on the upside, and as soon as it broke $1,525, that became an inflection point," said Brian Stutland of the Stutland Volatility Group.
And in fact, for those who remain wary about the Federal Reserve’s quantitative easing program, gold looks far preferable to stocks for 2014.
The stock market actually rallied on the news, but gold capped an already terrible year by dropping another $30 since that announcement.
When looking to catalysts that could drive gold higher, some traders add that the metal has become so beaten down, it could now be a bargain.
The potential to buy investments tracking the value of gold through a stock brokerage account makes it easier to take long-term or short-term investment positions in the precious metal.
Investing in physical gold comes with a significant list of inconveniences, including transport, security, purity verification and significant dealer buy and sell spreads.
The RBC price target for Kinross is dropped to $5.50, and the consensus figure is slightly lower at $5.21. The stock closed Monday at $3.65. A trade up to the RBC target would be a stellar 50% gain for shareholders.
Gold Stocks to Buy With Potential Upside of 40% or More Include Barrick Gold (NYSE: ABX), Kinross Gold (NYSE: KGC) – 24/7 Wall St.
RBC has a $37 price target, and the consensus target is $31.39. Shares closed Monday at $25.11. Trading up to the RBC target would give investors a very solid 47% gain.
Read more: Commodities & Metals, Analyst Upgrades, featured, gold prices, Barrick Gold Corp (USA) (NYSE:ABX), Agnico-Eagle Mines Limited (NYSE:AEM), Goldcorp, Inc.
(NYSE: AEM) completed the joint acquisition of Canada’s Osisko Mining and its Canadian Malartic mine this summer, which the company purchased together with Yamana Gold.
(NYSE: KGC) is a top small-cap name for investors looking for gold exposure and the ability to buy more shares.
The company operates as a gold producer involved in the exploration, development and acquisition of metal properties in Canada, the United States, Mexico and Central and South America.
Having a 5% allocation of gold in a well-diversified portfolio makes good sense for growth investors, especially those with a long-term horizon.
RBC’s research team pointed out that given the different capital structures and varying levels of ongoing capital expenditures at the stocks in their coverage universe, they believe evaluating precious metal companies on an enterprise value/adjusted cash flow basis provides for a more level playing field and reduces the potential for mispricing.
RBC's Top Gold Stock Picks Include Barrick Gold (NYSE: ABX), Kinross Gold (NYSE: KGC), Yamana Gold (NYSE: AUY) – 24/7 Wall St.
Read more: Commodities & Metals, Analyst Upgrades, featured, Barrick Gold Corp (USA) (NYSE:ABX), Agnico-Eagle Mines Limited (NYSE:AEM), Yamana Gold, Inc.
(NYSE: AEM) recently completed its joint acquisition of Canada’s Osisko Mining and its Canadian Malartic mine, which the company purchased together with Yamana Gold.
Gold ripped to all-time high a few years ago, and most of Wall Street, including some big name investors like John Paulson, thought the rally would continue.
Adding some low-priced gold stocks to a portfolio may make good sense in case earnings turn out poor and the situation in the Middle East continues down a rocky road.
A new report from the precious metals team at RBC identifies several key winners in the gold mining stocks.
Investors are starting to get really impatient with the gold miners – so much so that billionaire hedge fund manager John Paulson is arguing some of the world’s biggest gold mining companies, including AngloGold Ashanti Limited (NYSE: AU), spin off some of the mines that they have acquired through M&A over the past 10 years.
In this exclusive interview, the legendary investment guru took us on a tour of the gold market, taking a close look at what’s driven the past 12 years of gold price gains – and what will move the yellow metal going forward.
Anyone investing in gold should recall that before the financial crisis in 2008 central banks were dumping the yellow metal – when it was trading for less than half of where gold prices are today.
Money Morning Executive Editor William Patalon III recently had a chance to catch up with famed investor Jim Rogers on investing in gold, U.S. stocks, and the best commodities for 2013.
Monday’s drop in gold prices was the largest one-day plunge since February 1983 – which led many of those investing in gold to bail on the yellow metal.
Fact is, gold mining companies’ stocks specifically have lagged the performance of the precious metal for six years.
Even though the Dow Jones Industrial Average and Standard & Poor’s 500 Index have hit record highs this year, investing in gold remains the top investment pick in CNBC’s latest All-America Economic Survey.
This gold prices chart compares the yellow metal to two other measures to find out if indeed gold is in a bubble.
A new research report from the Precious Metal team at Credit Suisse points out that the plunge in gold prices in 2013 forced the top mining companies to evaluate growth options.
In addition, Credit Suisse is extremely bullish on the continued gold demand from overseas and central banks looking to hedge currency and inflation risks.
The Credit Suisse analysts point out that Agnico Eagle was the only mining company to raise its guidance following first-quarter results.
The Credit Suisse analysts point out that the company is a consistent, low-cost operator with solid valuation upside to its net asset value.
Credit Suisse also note that gold has rallied 8% year-to-date, and it echoed the sentiment that gold could have a lot of room to go even higher.
The company recently completed its joint acquisition of Canada’s Osisko Mining and its Canadian Malartic mine, which the company purchased together with Yamana Gold.
Plus, the company has very appealing valuation ratios and a significant scale of operations, allowing it to boost production as the gold price appreciates.
The company engages in the exploration, development, mining and production of gold properties in Turkey, China, Greece, Brazil and Romania.
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They discussed supply/demand of gold and silver, mining production, oil prices, trading, and the bullion industry.
The first primary silver miner in the industry just announced that it suspended sales of silver during the 3rd quarter due to the low market price of silver.
(TMM.TO)(NYSE MKT:TGD) is pleased to report preliminary production results for the Company’s third quarter ended September 30, 2014.
Krauth pointed to the U.S. Federal Reserve’s quantitative easing program and ultra-low interest rates in the United States, Japan, Europe, and China as contributing factors to gold’s recent growth.
"In this trying environment for miners struggling with rising production costs and scant financing options, royalty and streaming companies have the upper hand, able to do financing deals with extremely favorable terms (for them)," Krauth said.
"Gold rebounded from December into mid-March, adding $200 an ounce, or nearly 17%," Money Morning’s Resource Specialist Peter Krauth said.
"ConsiderRoyal Gold Inc., a $3.3 billion royalty company, with interests in more than 200 production, development, and exploration-stage royalties," Krauth said.
And according to Krauth, that’s a good move – he’s bullish on gold stocks in 2014.
Gold miners face numerous issues at the moment, and that has them leaning heavily on royalty companies like RGLD.

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