This post was originally published on this site
(Source: TC2000.com)
The favored way for investors to get exposure to gold is through the Gold Miners Index, but the issue is that investors are also exposed to the dogs of the sector and get a much lower yield. These under-performers weigh on the GDX’s performance, and with the GDX owning over 50 names, it’s bound to hold several names with major operational and financial issues. This is why I prefer investing in individual miners. However, the key is to focus on the highest-quality names with the best business and be disciplined enough to wait for the right price. With three top miners now paying dividend yields of 2% or higher and trading at double-digit earnings yields, now looks like the time to begin starting new positions in names like Kirkland Lake Gold (KL) and B2Gold (BTG) and monitor for further weakness in Agnico Eagle Mines (AEM). Let’s take a closer look at the three companies below:
