Q&A: Investing in Gold question?
Ok, so im a little late jumping on the band wagon but is it still a good investment? I was thinking of buying into GLD and then chasing it with a stop-loss trade in case it plummets..
www.goldsenze.com Answer:
Gold mining stocks are usually more volatile than the actual commodity and some currently are not reflecting the price of gold at this time. So I would not buy the actual commodity, but do some homework and find a quality mining company, chances are it may have a good long run going forward. I would focus on a larger, proven mining company and avoid the speculative penny stocks of gold miners.
ABX American Barrack Resources has been a long time favorite of mine http://www.google.com/finance?q=abx
And if you really like the metals sector overall, perhaps consider Rio Tinto or BHP Billiton.
I think commodities such as oil and gold will do well in the future and they remain a reliable hedge against inflation.
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