This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

How to Buy Gold Stocks

NEW YORK ( TheStreet ) -- Gold stocks provide more money-making opportunities than owning physical gold, says one analyst.

The typical belief is that gold mining stocks can rise as much as 20% to 30% more than gold prices making them an attractive investment for those who want exposure to gold without the hassle.

The spot gold price has popped 7% year to date while the Market Vectors Gold Miners ETF (GDX), a basket of large mining companies, has risen over 8%. Many analysts expect mining companies to profit from higher gold prices over the long term.

Atyant Capital is a believer in the gold stock thesis. Its one-year-old Global Opportunities Fund was created to invest solely in small, mid-size and large gold mining companies. The fund rose 7.60% in April while gold prices rose 4.9%, but year to date the fund is up only 0.07%. I spoke with Vedant Mimani, managing partner and lead portfolio manager, to get his approach to the gold market and to find out if he was changing his investment strategy as gold prices surged.

First off, tell me about your fund.

Mimani: We're a global macro trading fund. We're focused on precious metals because we think that's where the best risk/rewards lies in the entire world.

What precious metal do you like the best?

Mimani: I like gold the best. And I only consider precious metals really gold and silver.

What stocks do you have in your fund? Top four to five stocks?

Mimani: Well, these are the stocks we hold in the fund I like Gold Fields (GFI - Get Report), Harmony (HMY - Get Report), Iamgold (IAG), and Royal Gold (RGLD - Get Report).

Why do you like these big guys?

Mimani: I like the big guys as a whole because they're the ones that have all the money and in a world where money and credit are tight they hold a lot of cards ... I like Goldfields and Harmony because they're very levered to the price of gold. [I like] Iamgold and Royal Gold because they're proven winners. They've done a great job of creating wealth in the last nine to 10 years.

What you don't have on the list you just told me are the really big guys, Barrick(ABX), Newmont(NEM), and Kinross(KGC). Why did you leave those out?

Mimani: They're good too. Not to be glib, but you try to maximize the upside. Some of those guys are pretty good too. Barrick is a little bit undervalued say relative to Goldcorp (GG - Get Report) ... but we went a little bit down, a little bit lower in the food chain. There's nothing wrong with those companies in my opinion.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
IAU $12.48 2.04%
GDXJ $38.52 5.88%
GDX $25.83 6.39%
AAU $1.14 -1.72%
GFI $4.70 7.31%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs