Gold Price Slumps, but Some Gold Companies Rising Above

Gold Price Slumps, but Some Gold Companies Rising AboveGold has hit a rough patch these last few weeks as the US dollar continues its winning streak, pushing the yellow metal closer to $1,200 per ounce. With September drawing closer to an end, bringing with it the end of the third quarter, investors have undoubtedly been hoping for higher prices and not the $1,214.59 closing price for gold on Monday.

As Dundee Capital Markets' Martin Murenbeeld noted at last week's Denver Gold Show, gold is being hammered down by five key factors: the Federal Reserve tightening policy; the US dollar remaining strong; the world economy being sluggish; equity markets continuing to pull investment interest away from gold; and lastly, bearish technicals.

That's not to say the yellow metal has no points in its favor. Indeed, Murenbeeld also highlighted several bullish points that could support gold for the rest of the year and into 2015. Dundee's chief economist pointed at ETF supplies, which are significantly lower; expanded demand from Asia; central banks carrying on with their gold buying; and ongoing monetary reflation brought on by the global debt crisis.

Gold's bullish future is little disconcerting, as it lies in the shaky hands of the global economy. Nonetheless, that's nothing new for gold investors. That being said, when looking at gold mining stocks, where does an investor put their money?

Dividend-paying companies

When looking at options for investing in mining stocks, it's good to keep a few factors in mind. The Motley Fool suggests that in times of uncertainty, investors interested in gold mining stocks should try their hand at dividend-yielding companies like Goldcorp (TSX:G,NYSE:GG) and Yamana Gold (TSX:YRI,NYSE:AUY); that's because even when gold prices are low, investors are still making a little back.

The publication looks at Vancouver-based Goldcorp, which pays a monthly dividend that currently yields 2.4 percent at a dividend rate of $0.60. The article notes that the company has paid a dividend to shareholders each month since 2003. When gold prices are higher, the company increases its dividend. On the flip side, when gold prices are lower, the company hasn't yet cut dividends.