Tags: skarica | gold | stocks

Skarica: Thinking Stocks? Think Gold

By    |   Thursday, 22 Oct 2009 09:51 AM

Gold stocks are a good investment, especially compared to the stock market, said investment strategist David Skarica.

Skarica, editor of the Gold Stock Adviser newsletter, is bullish on gold stocks and believes the sector has “a number of years to go.”

When the market crashed in 2008, gold stocks fell more than gold itself because they were owned by funds which had to liquidate them, Skarica tells Newsmax TV.

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Skarica said he saw there was “great valuation” in gold stocks and that they were “especially cheap compared to the price of gold.”

The market has changed rapidly. The price of oil has fallen, natural gas prices have decreased, and the labor costs declined, he said.

“Gold has held up,” Skarica said. “Gold stocks on a whole are 15 percent to 20 percent cheaper than they were in 2008.”

Gold stocks are not just based on the price of gold, but also priced on the amount of reserves a mine has, Skarica said.

Large cap gold companies often have reserves that are shrinking, which result in the stock price being held back because they can not reproduce the same amount of gold, he said.

See David Skarica's Top Gold Stock Picks for 2009 — Click Here

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Gold stocks are a good investment, especially compared to the stock market, said investment strategist David Skarica.Skarica, editor of the Gold Stock Adviser newsletter, is bullish on gold stocks and believes the sector has “a number of years to go.”When the market crashed...
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2009-51-22
Thursday, 22 Oct 2009 09:51 AM
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