Monday, April 22, 2013

Gold Stocks

Gold stocks have crashed especially Barrick Gold Corp. I did not have a spreadsheet on this stock, but I have known about it for years. I had not realized how badly hurt gold stocks were until listen to a video of an interview of John Mauldin and Grant Williams at Mauldin Economics.

I do not have much money to invest because I have living off of my portfolio. However, this was too much to pass up. I have not got much in resources and certainly gold stocks have never been on my radar. However, pick up this stock up at $18.32 with a 4.48% dividend yield is a good buy.

I did not buy much, just 100 shares and this should be a fun buy. At the moment I do not know how long I will keep it. As I have said, I do not have much spare money to buy stocks so that is why I only bought 100 shares. Now, I need to do a spreadsheet and decide if this is a stock I would want to keep.

The thing is we are in unsettling economic times. It is hard to know how long the current debt cycle will last. Certainly few countries, especially in the Western world seem motivated to pay down their unsustainable debt.

I picked Barrick to buy as I already know this company, but I have not particularly tracked it as I have no spreadsheet on it. Barrick has other problems than just the price of gold. However, I do believe that the market overreacted when it sent this stock so low. The market typically overreacts to bad and good news.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.

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