Saturday, May 31, 2014

Long-term Investing In Gold Stocks

Every inwestor should know about his/her long-term investments results.

Let us compare the investment in three big gold companies, namely:
  • Newmont Mining
  • Gold Corp
  • Barrick Gold
to SPY, which is an ETF reproducing S&P 500 in quite a strict way.

The gold miners have been listed on the stock exchange since the beginning of the bull market in gold - as a starting day I take November 30, 2000. The ending date is May 30, 2014.

The results are below:


As you can spot, only the investment in Barrick Gold would have been worse than an investment in the broad stock market. On the other hand the investment in Gold Corp, one of the world's biggest precious metals miner and one of low-cost gold producers would have been much better than the investment in SPY.
And, in my opinion, the bull market in PM sector is still intact while the bull market in a broad stock market is presently at its aging phase.

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