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| Pure GGGGold By Luke Burgess | Tuesday, July 26th, 2011 Don't think that it's too late to invest in gold... It's not. The gold bull market still has plenty of fuel in the tank. And there are still several easy ways for well-informed investors to yield serious gains. There's no doubt gold bullion prices have already experienced stellar gains over the past several years. Since 2001, the price of physical gold is up some 500% to over $1,600 an ounce. And while I think it's unlikely we will see another 500% gain from current bullion prices in the near term, we can find even bigger gains from the right gold mining stocks. In today's Wealth Daily, I'll tell you about one of the purest gold equity assets on the market that may serve as a good guide to finding those stocks. Advertisement Woman Collects 8.2% from Her Bank and So Can You Ms. P----- S-----, age 58, and former airline employee, collects an extra $7,200 from a special bank in New York. She's not a trader, not an insider... just an everyday American collecting an 8.2% yield from a specialized bank. Gold Fever Spreads Despite record-breaking prices, investors continue to flee to gold as a hedge against the sovereign debt crisis (and now, new global security fears). Data from the U.S. Mint continues to show a surge in sales of both gold and silver bullion. Meanwhile, the World Gold Council reports record holdings in gold ETFs. Gold ETFs now have collective holdings of 2,155 tonnes of gold, worth over $100 billion.
The main appeal of both physical gold bullion and ETFs is pure exposure to the price of the underlying metal itself. And the appeal of gold stocks is, of course, the potential for a much higher investment return. Not to worry, though; you can have the best of both worlds... In last Friday's issue of Wealth Daily, I introduced you to a few “pure” silver stocks as a way to best leverage rising silver prices. You'll recall that silver is most often mined as a by-product of other metals; gold, however, is a different story. Unlike silver, gold is quite often the primary revenue-generating product of a mine. So there are many public gold companies on the market that are considered general pure plays. But if you're looking for an easy way to get broad exposure to pure gold stocks, Global X Funds has you covered. Advertisement Protect Your Finances From The Fed's Printing Presses Right now, the world's central bank s are printing money like there's no tomorrow. And as each desperate act to calm the markets fails, the value of everyone's purchasing power is being squeezed to nothing. Most investors are running to physical gold... But I recently uncovered an opportunity that could help your portfolio break even. In fact, it could triple your wealth in very short order as the rest of the economy crumbles. The recently introduced Pure Gold Miners ETF (NYSE: GGGG) tracks an index of 30 global mining companies that are leveraged almost completely to gold.
Global X Funds restricts components of GGGG's index to companies that generate at least 95% of their total revenue from the production and sale of gold. Here are the index's current top ten constituents:
The GGGG ETF is in competition with Van Eck Global's Gold Miners ETF (NYSE: GDX) and Junior Gold Miners ETF (NYSE: GDXJ). Many of the companies listed in GGGG's index are also tracked by GDX and GDXJ. However, due to GGGG's pure gold guideline, some major gold production don't make the cut — including Barrick Gold (NYSE: ABX), Newmont Mining (NYSE: NEM), and Yamana Gold (NYSE: AUY). Barrick Gold, for instance, is the largest gold-producing company in the world by volume, but the company actually generates about 15% of its revenue from copper. The GGGG ETF is a niche product in the precious metals sector. But if you're really looking to invest in pure gold stocks, I would recommend choosing two or three individual stocks from those listed on the GGGG index. Piggybacking again on last Friday's Wealth Daily, I believe the best alternative to pure precious metals stocks is the physical metal itself. There's nothing purer than holding .9999 bullion in your hand... Other good alternatives to pure gold stocks include gold royalty and streaming companies, like Royal Gold (NASDAQ: RGLD) or Franco-Nevada (TSX: FNV). Good investing,
Luke Burgess | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Articles Top Silver Stocks Part IISilver is Now Rarer than Gold Investing in Silver Bullion Coins Top 3 Pure Silver Stocks for the Rest of 2011 Wealth Daily Blogs
Economic Releases for the week of Monday, July 25th, 2011: Jul 26 - Case Stiller 20 City Index Jul 27 - MBA Mortgage Purchase Index Jul 29 - Chicago PMI Jul 26 - Consumer Confidence Jul 28 - Pending Home Sales Jul 26 - New Home Sales Jul 27 - Durable Orders Jul 27 - Fed's Beige Book Jul 29 - Michigan Sentiment You May Also Enjoy...Wealth Daily's Weekend Edition2011-07-24 - Steve Christ Gold Will Shine, but Silver Will Be the Moneymaker 2011-07-22 - Luke Burgess Prices Reclaim $1,600 an Ounce 2011-07-22 - Greg McCoach The One Stock You Can't Pass On 2011-07-21 - Ian Cooper It Was a Matter of Life and Death 2011-07-20 - Steve Christ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Tuesday, July 26, 2011
Pure GGGGold
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