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Gold Mining Stocks: Losers

Written by Gary North on June 26, 2012

I have recommended that gold investors invest their first $10,000 in bullion coins, preferably American eagles for Americans and maple leafs for Canadians. Buy the coins that your nation’s mint produces.

I have not recommended gold mining shares.

The poor souls who invested in mining shares have lost their shirts. The “junior” mining share index is back to where it was in 2002. If people had bought coins, they would be up five to one.

When you buy mining shares, you are buying the companies’ management. You are buying hope for gold in the ground. You are buying hype.

Mark Tawin said it best: a gold mine is a hole in the ground with a liar in front of it.

The typical investor thinks “stocks” when he hears “gold.” He thinks the way his stock broker has trained him to think. He is therefore going to lose his money.

Buy coins. Then buy bullion, preferably stored outside the country in Switzerland. GoldMoney offers this service. So does Bullion Vault. (For trusts, Bullion Vault is far easier to use.)

Your stock broker will advise against buying coins. He gets paid when you buy stocks.

Click the link to see what happened to te people who bought mining shares rather than coins. The charts tell the story. It’s grim.

Continue Reading on www.24hgold.com

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7 thoughts on “Gold Mining Stocks: Losers

  1. Folks,
    More a question than a comment.
    I buy gold coins the economy goes to pieces,were or to whom do I sell them/?

  2. Not a Paper Patriot says:

    Gary North is about as right about gold shares as he was in his prediction of the end of the world in 2000 when he made a total fool of himself. He has not recovered since and certainly will not with this palaver.

    The junior golds are the buy of a lifetime. Just ask James Turk under whom Mr. Lee is said to have studied. Or Rick Rule, the greatest speculator in junior golds the world has ever seen.

    Do not be left out of this golden opportunity but pick your stocks carefully as 97% are moose pasture while the remaining 3% will make you wealthy.

  3. Another genuine question: Why the American Gold Eagle?… as Cliff wrote above – how would they be then used? Would they at some point then, become monetized?

  4. "gold stocks are losers"? I started accumulating junior gold stocks in 1998. In 2005 I sold some shares and made enough profit to pay off my house (in full). I am still accumulating junior gold stocks today because this bull run is not over and the best move (at least for juniors) is yet to come.

  5. If the economy gets so bad you can't sell your gold, you had better bought lead too.

  6. Jonathan says:

    If you know what you are doing and do your research then jr mining stocks can do well for you. If not then stay FAR away!

  7. LibertyLouis says:

    I can't believe Gary North still has a job! He's so Progressive and most of his info is incorrect leading DOWN the wrong path. The only time he is correct is when he's copying from someone else at a later date when it's OLD News.