Read This Before You Buy A Gold-Mining Stock - Market Vectors Gold Miners ETF (NYSEARCA:GDX) | Seeking Alpha
This is a good article on gold mining stocks. You are better off buying a gold ETF compared to buying most gold miners. As the author mentioned, gold mining costs are huge, $1500 per ounce for a lot of miners. I know some miners who can get the job done for around $1300 or less, but that is too close to the gold break even point to make gold miner investing profitable. Also, people don't really want to pay more than $1300 per ounce for gold. Gold has experienced demand destruction just like oil did several years ago when oil was around $150 per barrel. So, gold is only a trade, and you must pick the right stock as well to avoid losing money.
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