Five 'Buy'-Rated Gold Stocks to Mine

Royal Gold and Goldcorp are among companies that stand to benefit as gold hovers over $900 an ounce.
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As the economy tanks and the Treasury's printing presses work overtime, investors are paying more attention to gold, which has been trading

just below $1,000 an ounce

all month.

Investors could buy gold coins to take advantage of the precious metal's rising value, but they would have to deal with storage and insurance costs. That's why many investors turn to gold-mining stocks. Ratings' quantitative model give these five gold-mining stocks grades that put them in "buy" territory.

These companies range in size, based on annual revenue, from $66 million for

Royal Gold

(RGLD) - Get Report

to $2.21 billion for




We gave four of the stocks "reward grades" in the "A" range. However, the volatility of the yellow metal resulted in "risk grades" in the "D" range for four of them. Four of the stocks pay modest dividend yields, though the rates are under 1%.

While most of Royal Gold's revenue comes from royalties instead of mining, we gave the firm our highest reward grade, "A-plus." It also had the lowest risk mark, "C," of the group.

RealMoney contributor Dan Fitzpatrick discusses gold prices in this video. Fitzpatrick publishes The Stock Market Mentor newsletter.

Richard Widows is a senior financial analyst for Ratings. Prior to joining, Widows was senior product manager for quantitative analytics at Thomson Financial. After receiving an M.B.A. from Santa Clara University in California, his career included development of investment information systems at data firms, including the Lipper division of Reuters. His international experience includes assignments in the U.K. and East Asia.