Here's a Contrarian Investment: High Yield Gold Stocks

Talk about an industry that has been hammered, look at gold. During the last year, the S&P 500 was up 11.25%, whereas the SPDR Gold Shares ETF (GLD), which has a goal of replicating the performance of gold bullion, was down 8.9%. Then look at the gold mining stocks. The Market Vectors Gold Miners ETF (GDX) was down 21.81% over the same period.

If you feel that gold may start rising again, you may want to consider the gold mining stocks, especially the ones that pay dividends, as this will return your capital faster and help reduce volatility. Fortunately, there are over 20 to choose from, according to the list of dividend paying gold stocks at WallStreetNewsNetwork.com. Some pay annually, some pay semi-annually, some pay quarterly, and couple even pay monthly.

One example is Freeport-McMoRan (FCX), which actually has a fairly diversified business, not only exploring for gold, but also silver, copper, molybdenum, cobalt, and even oil and natural gas. The stock trades at only 12 times trailing earnings and 11 time forward earnings. The company pays a generous yield of 4.7%, and dividends are paid out every quarter.

Yamaha Gold (AUY) is a Canadian based company that has mining properties in Argentina, Brazil, Chile, and Mexico.  The stock trades at 18 times forward earnings. The yield on the stock is 2.7%. Like FCX, it also pays dividends quarterly.

If you are looking for a monthly dividend payer, Goldcorp (GG), is one example, and it has a yield of 2.7%. The stock trades at 22 times forward earnings.

If you want to see all the other high yield gold stocks, which includes information on the PE ratio, the forward PE, the PEG, the yield, and the dividend frequency, go to WallStreetNewsNetwork.com. This may be a great way to add gold to your portfolio.

Disclosure: Author didn't own any of the above at the time the article was written and has no plans to do so in the next 72 hours.

By Stockerblog.com

What's Up with Gold: Plus, the Largest Crystalline Gold Nugget in the World

The Crown Jewel Gold Nugget

A couple weeks ago, I was at the Ironstone Vineyards in Murphys, California, where they have a gold rush museum. One of the highlights of the museum is 'The Crown Jewel', also known as the Kautz Crystalline Gold nugget, the largest crystalline gold nugget in the world, a very rare form of gold. This nugget weighs 44 pounds. If you are ever in the California Gold Country, you should certainly check it out.

So what has been happening with gold lately? Not much if you look at the price of gold over the twelve months. The SPDR Gold Shares (GLD) have dropped 6.16% over the last year, whereas the S&P 500 is up about 15% over the same time frame.

If you are a contrarian and think that now be the time to acquire some gold, you may want to consider gold mining stocks, as there are almost two dozen that pay dividends, according to the free list of high yield gold and silver stocks at WallStreetNewsNetwork.com. Almost ten of these stocks have yields in excess of 2%.

Barrick Gold (ABX) trades at 14 times future earnings, and pays a yield of 1.2%. The company, based in Ontario, Canada, has mines in North America, South America, Africa, and Australia.

Newmont Mining (NEM) has mines in Australia, New Zealand, North and South America, and Africa. It trades at 16.5 times forward earnings and pays a dividend rate of 0.4%, payable quarterly.

Silver Wheaton (SLW) pays a yield of 1.3%, payable quarterly.

For a free list of high yield gold and silver stocks go to WallStreetNewsNetwork.com.

Disclosure: Author didn't own any of the above at the time the article was written.

By Stockerblog.com

Ways to Earn Income from Gold

Yesterday, the Wall Street Journal ran an article on the many options of gold investing. But what about the investors who like and want income from their gold investments? Since the beginning of October, gold has dropped around 3.5% based on the return on the SPDR Gold Shares (GLD) ETF. Maybe income gold stocks warrant a closer examination.

Gold stocks with yields help reduce risk. Based on the free list at WallStreetNewsNetwork.com, there are over twenty dividend paying gold stocks, and ten of them with yields greater than 1.5%. As a matter of fact, you can own a gold mining stock that pays its dividends in gold or silver, your choice. Gold Resource Corp, which trades on the New York Stock Exchange, (GORO) offers silver dividends to its shareholders, in addition to the options of gold or cash dividends.

Freeport-McMoRan Copper & Gold Inc. (FCX) is a high yielding gold miner which increased the dividend back in April from 25 cents per quarter to 31.3 cents, giving the stock a 3.6% yield. Freeport trades at 12.5 times trailing earnings and 8.6 times forward earnings. It pays a very favorable yield of 3.0%, and pays its dividend quarterly.

Another dividend paying gold mining stock is Yamana Gold Inc. (AUY) with a yield of 1.4%. The stock has a current price to earnings ratio of 34.5 and a forward PE of 13.7. The company was recently upgraded by HSBC Securities from Neutral to Overweight.

There are plenty of other gold mining stocks with dividends including Rio Tinto plc ADR (RIO), offering a yield of 2.8% and Newmont Mining Corporation (NEM), paying 2.5%.

For a free list of over twenty high yield gold and silver stocks, which you can download, sort, and update, go to WallStreetNewsNetwork.com.

Disclosure: Author didn't own any of the above at the time the article was written.

By Stockerblog.com

Market Report on S and P 500, Oil, Gold & Dollar

Guest Article

Wednesday the market didn’t tell us anything new. The equities market is still over extended on the daily chart but the market is refusing to break down. Each time there has been seen selling in the market over the past two weeks, the market recovers. Equities and the dollar have been trading with an inverse relationship and it seems to drop every in value each selling pressure enters the market, which naturally lifts stocks.

That being said, sellers are starting to come into the market at these elevated levels and it’s just a matter of time before we see a healthy pullback/correction. The past 10 session volatility has been creeping up as equities try to sell off. There will be a point when a falling dollar is not bullish for stocks but until then it looks like printing of money will continue devaluing of the dollar to help lift the stock market. Some type of pullback is needed if this trend is to continue and the markets can only be held up for so long.

Below is a chart of the USO oil fund and the SPY index fund. Crude has a tendency to provide an early warning sign for the strength of the economy. As you can see from the April top, oil started to decline well before the equities market did. This indicated a slow down was coming.

The recent equities rally which started in late August has been strong. But take a look at the price of oil.

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by Chris Vermeulen
www.TheGoldAndOilGuy.com

Forget Gold, Try this ETF Instead

Guest Article

With Gold (GLD) reaching all-time highs again this week more investors are putting cash into anything precious metal related but I am here to caution you on doing so. There are far better opportunities than gold right now and chasing this trend is not the formula for generating short-term growth. We have traded GLD call options 8 times this year (7 profitable) in the ETF TRADR portfolio but now it’s time to step away. Of course, what type of ‘tradr’ would I be if I failed to offer a better alternative.

First off, it would be very difficult to find a long-term chart more strong and persistent than the Gold chart – it’s nothing short of amazing (and at the same time scary for the future of the dollar). That said, even as Gold has made new highs in recent days there is a better place to focus your trading capital. The semiconductor industry has lifted off in recent days and I expect it to continue. Here’s the performance chart between the headline-making Gold (GLD) rally and the Semiconductor ETF (SMH).

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by Andrew Hart – ETFTRADR.com

Investing in Gold

For the past 5000 years, gold has been the most sought after commodity. For those who understand the monetary system and the mechanics behind it, they will undoubtedly be aware that gold is and always has been a solid investment choice. At the very least, it can be considered a hedge against inflation. As current markets undergo drastic changes, there has never been a more crucial time to invest in gold.

There are a number of essential factors that should be taken into consideration regarding gold and is financial value. First, gold is both a commodity and a currency unto itself. Gold along with silver are both currencies that are beyond government control. (At least gold is currently legal to own in the US.) All the currencies currently used, such as the Euro, dollar, pound, and yen, are all forms of fiat currencies, which means that their value is intangible, and their worth is merely set by their government’s declaration.

The problem with fiat currencies is that governments in the past have had a tendency to over-create, which subsequently leads to hyperinflation and an inevitable collapse of the country’s economy. Several years ago, many world currencies could be converted to gold. Not anymore.

Some theorists believe that during the last fifteen years, governments and world banks have been trying to keep down the price of both gold and silver. They believe that once governments stop trying to suppress the price of gold by lending and selling their gold, the price of both commodities will rise substantially.

The best way for most investors to invest in gold is through ETFs (Exchange Traded Funds), a financial tool that works much like a mutual fund except that instead of holding a basket of stocks, they own gold. For example, SPDR Gold Shares (GLD) holds gold bullion and is up over 23% for the year. The five year average annual return is 19.8%.

For investors who think that silver may be a better buy, there is the PowerShares DB Silver (DBS) ETF, which owns futures contracts on silver. The ETF is up 48% for the year.

One of the main reasons why investing in gold through ETFs is a wise option is that it is much easier to hold: no storage costs, no safe deposit box, no risk of being taken by burglary.

Many investors believe that gold is a great hedge to counter inflation, and given the risks evident in the condition of the global market, gold stands as a solid asset that can withstand all financial tides. Gold remains in constant demand regardless of the fluctuations of global markets.

To find more information about gold and silver ETFs, check out the free list at the WallStreetNewsNetwork.com site.

Author does not own any of the above.

By Stockerblog.com

George Soros Increasing His Investment in Gold

In spite of the fact that George Soros, billionaire and top trader, has suggested the gold is in a bubble, he has decided to increase the gold holdings that he has. As a matter of fact, he has decided to double his investment in gold, through investing in the SPDR Gold Trust (GLD). He also increased his investment in Yamana Gold (AUY).