Q: Hi, Pat. Regarding Newmont Mining, your “buy” recommendation is always tempered with “for investors who want to own a gold stock.” Can you explain why investors might want to own a gold stock, and the pros and cons of owning a gold stock?

A: We don’t see golds as an essential part of a sound portfolio, and, in fact, gold investing is a poor choice for most investors. For one thing, it involves considerably more guesswork than other aspects of investing.

The markets for widely traded goods like gold… Read More

Cash flow shores up this miner’s appeal

Cash flow shores up this miner’s appeal

This major gold miner produces nearly a million ounces of gold each year and generates positive cash flow from seven mines in four countries. For added diversity, it owns 20.5% of another gold producer.

Altogether, that steady output adds to this gold miner’ speculative appeal and… Read More

Their rising output boosts them appeal

IAMGOLD $4.24 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 450.7 million; Market cap: $2.2 billion; No dividends paid) owns 41% of the Sadiola gold mine in Mali; 90% of the Essakane mine in Burkina Faso; 100% of the Westwood mine in Quebec; and 95% of… Read More