Finding the Top 10 Gold Stocks
Gold Stock Analyst is two newsletters that make it simple for investors to own a portfolio of the best Gold stocks. Published twice a month since 1994 by a former Professor of Economics and Finance (Bentley College in Waltham, MA), GSA focuses on the 70 Gold and Silver miners that have ounces that meet the US Security and Exchange Commission's strict report- ing standard for Proven and Probable Reserves. From those meeting this test, GSA crunches numbers, dissects SEC filings, visits mines, talks and visits with management.
All this searching for the Top 10 Stocks... those that are undervalued and have the potential to double in the next 18 to 24 months, assuming no change in Gold's price. In today's era of $10 internet trades, the transaction cost to buy 10 stocks is trivial... even if Gold is only 10% of your total portfolio.
Ten stocks is the right number for this volatile sector. It's a small enough so a big gain in one will have major impact on the total portfolio... one stock doubling boosts the portfolio by 10%. Yet ten is large enough that even if one fell 50%, it would cut the portfolio's total value by just 5%.
Additionally, the discipline of 10 stocks means a new stock must be seen to have better upside than the current members of the Top 10. Since we seek undervalued stocks that can double at the current Gold price, the "better upside" is a high hurdle and gives the discipline needed to achieve superior results.