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Analyst: gold mining company stocks and gold line is no longer a stable long-term investment

Analyst: gold mining company stocks and gold line is no longer a stable long-term investment

international investment environment in recent years, with network and rapid changes on the development of the market itself, but also the issues not previously.  Gold market analyst Barry Ritholtz l Friday (November 13) says, now investing in gold mining company shares is a trade, rather than from the kind of long-term investment.  

Barry l Ritholtz says, in the past, if you want to invest in gold, you have only three choices: either buy physical gold, and saved expenses; you can also buy gold futures, which also require a fee; the third approach is to invest in gold mining company stocks, it has gold, of sorts.

but after the gold ETF derivatives appear, the gold market has produced a sea change. Gold ETF is easy to operate, and no other product so complicated requirements.  For the modern man has an irresistible appeal of simplicity.

Barry l Ritholtz points out that in August 2011, the gold ETF once held $ 77 billion, briefly exceeding the United States poor's 500-stock index derivative Fund 11 seconds of time.  Gold was once briefly world investment derivatives market leader.

Barry l Ritholtz points out that gold price volatility has actually begun departing from the gold mining company stock. With the increase of investment in gold-related products in the market, fewer people are willing to buy the shares of gold mining companies.  Targeting a single gold, after all, than need to observe whether a company of good, cost control, compliance, management has been paying excessive compensation problems much easier.

Barry l Ritholtz believes that current market pace has led gold miners are less and less under the influence of gold. Gold mining stocks are now more transactions with other stock as a company's performance.  Rather than from the front with the fluctuation of gold hedge investment for a long time.

Barry Ritholtz l warned investors, if you want to invest in gold mining companies, best to make it clear what mining companies stock prices now represent.