Here are 5 Reasons to Temper Your Enthusiasm on Gold Stocks

goldGold stocks have been on an absolute tear this year, with some, such as Kinross (K/TSX) or Richmont (RIC/TSX) up more than 100% in the first five months of the year. Smaller company shares have risen, generally, even more.

Investors and fund managers are falling all over themselves trying to buy into the sector. Of course, we have seen this movie before: sometimes the sector keeps rallying after a big gain, sometimes not. We are here to throw a bit of cold water on the faces of gold bugs, though: Here are five reasons why you might want to temper your enthusiasm for the sector after its big run.  Read More…

This article has 12 Comments

  1. Isai

    Now if we could only just get gold stock to provide fixed income like dividends 🙂

    My dad was big on bullion. I kinda got the bug from him.

  2. Donny H

    Meh, this was kinda expected. Gold has been down for the last 3 years or so, so it was bound for a rebound. It's quite cyclical.

  3. Carson Friedburg

    LOL! Gold is, for the most part, usless. It's mostly used in jewlery and there are some electronics that use it (iPhone partially uses it for its case). But for the most part gold isnt a necessity for majority of things. There are plenty of other metals that can be used more effectively than gold.

  4. Lewis

    Ah Oh. I remmeber when the US were all freaking out that Obama became president and gold was being horded by conservatives out of fear their country was going to be wastelanded. smh. So what has he done now to cause the price surge?

  5. Nicklaus

    Does this mean the Loonie will go up now that gold is going up or does this only apply with oil?

  6. Jamal

    Anyone have quality mutual fund picks that have a respectable bunch of gold?

  7. Wyatt O.

    I have never had nor will i ever have mining elements in my holdings. Never understood the value of them. Stick with what i know, and i know nothing about gold.

  8. Zackery B

    Wow so XGD went up 100% this year? I feel like a sucker for not getting into gold 🙁 Thought about it though.

  9. Leonard Shipman

    It's been a fantastic year for us who have been preaching the gosphel of gold buy for a long time. My portfolio is up 46% this year.

  10. Hillary

    I think its cute one can buy gold and literally get the bars that it relates to, if one goes throught he proper paperwork.

  11. Zaire

    The full article correctly states what i was saying when i saw tihs post, that because the US Fed announced the interest rate was going up this would already indicate it will have a negative affect on gold price later this year. So what you are seeing now is the peak.

  12. Tyriq B

    I guess this article proves it is the sector that moves not individual stocks. Just relating back to last weeks article.

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