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
TheStreet Open House

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), Harmony (HMY), Iamgold (IAG), and Royal Gold (RGLD).

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) ... 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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,075.94 -22.51 -0.13%
S&P 500 2,002.27 -1.10 -0.05%
NASDAQ 4,590.2930 +10.0220 0.22%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs