First up is Newmont Mining (NEM), a gold mining stock that's gotten shellacked in 2012 as gold fell out of favor. Shares of Newmont are down more than 15% on the year, versus gains of close to 7% for the S&P 500. In turn, institutions sold off or lost $3.5 billion worth of Newmont stock in the last quarter, a material chunk of their total holdings in the firm.
Let's make one thing clear from the get-go: If you're looking for a way to get exposure to gold through mining stocks, Newmont is as good an opportunity as any. The firm weighs in as the world's second-largest gold producer, and it pays a dividend that's linked to gold prices. When you add in the fact that mining stocks are still trading at a discount to the value of the metal itself (gold-tracking ETFs are up slightly on the year, for instance), there's a good case for gold bugs to look into adding onto a position in Newmont.>>6 Stocks to Play for Lower Gold Prices I wouldn't recommend doing that blindly, though. Gold prices have been under pressure in 2012, and they could find themselves pressured again in the second half of the year. This week is going to give us some good hints on gold's trajectory, especially if Fed Chairman Bernanke doesn't announce QE3 in today's speech (I have my own reasons for thinking he won't). Even though hedge funds may be hating Newmont Mining right now, investors should give this stock a second look in June.
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