Gold Stock Are they Really Cheap?
by samuel ezerzer
Gold about 200-300 $ in the last few days and Gold miners stocks dropped about about even more and are many trading at a fraction of last of 2012 levels. Some of the bigger companies have fallen so much that they there dividends yield is about 4-5 % that might tempt the yield-hungry investor.
Consider that Barrick Gold Corp. shares yield 4.1 per cent and giant Newmont Mining Corp. sports a 5-per-cent payout.
Martin Braun, senior strategist at J.C. Clark Ltd., a Toronto investment firm was quoted on THE GLOBE AND MAIL;He says he’d be more interested if prices reached his estimate of the level where miners as a group couldn’t make money hauling ore out of the ground. “Until I saw something around the $1,100 to $1,200 mark, no I’m not tempted,” he says.
Gerald Connor, chief of Cumberland Private Wealth Management Inc. in Toronto, said about the plunge ,The firm cut its gold-related holdings a few years ago, and hasn’t got much of a position currently.
“Are we tempted to buy here? There is probably some temptation but we just can’t quantify where this metal might go and I think there are other more attractive areas of the market,” he said.
Approach with caution
1150-1200$ level for GOLD
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