NEW YORK (TheStreet) -- Gold mining companies Barrick Gold (ABX) , Yamana Gold (AUY) , Goldcorp (GG) and Newmont Mining (NEM) are trading at lows not seen both before and after the gold bubble inflated -- then burst. This makes these shares extremely cheap as compared to Comex gold futures and an opportune time to add gold miners to a diversified portfolio of stocks.
The bubble for Comex gold began to inflate in October 2008, from $730.30 per Troy ounce, staying above its 200-week simple moving average then at $651.30. The bubble peak was $1923.70, set in early September 2011. Then Comex gold declined from that high to the recent multiyear low at $1160.50, set on Oct. 31 -- a drop of 40%.
Must Read: 7 Stocks Warren Buffett Is Selling in 2014
Let's take a look at the profiles for gold mining stocks after their decline of 70% and more.
Barrick Gold ($11.92) set its all-time intraday high at $55.95 in September 2011, and is down 80% to an all-time intraday low at $11.33, set on Oct. 31. This is below the previous low at $13.13 set back in November 2000.
Barrick reported quarterly results on Oct. 29. Investors ignored the earnings-per-share beat.
Investors should employ a "good 'til canceled" limit order to buy weakness to the all-time low at $11.33.
Yamana Gold ($4.01) set its all-time intraday high at $20.59 in November 2012, and is down 82% to a multiyear intraday low at $3.80, set on Oct. 31. This is above its prior multiyear low at $3.31 set in October 2008.
Yamana Barrick reported quarterly results on Oct. 29, with a miss of 6 cents a share and a loss of a penny a share.
Investors can consider buying this stock as buying an "option on survival," as the stock can be bought below $5 a share. Investors can then employ a "good 'til canceled" limit order to the stock's October 2008 low as $3.31.