What Investors Need to Know About Gold & the Mining Shares

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/16_What_Investors_Need_to_Know_About_Gold_%26_the_Mining_Shares.html

“Clearly, Eric, we’ve seen a big decline in the value of gold equities.  Yesterday I was reading a piece by Don Coxe, a well known strategist.  In his note he did a calculation on how much gold one can buy with $1,000 in the gold ETF versus what can be purchased with some mining companies. 

Based on the prices a few days ago, so it’s more extreme now, but with $1,000 you can buy .62 ounces of gold in the ETF.  If you buy $1,000 of Goldcorp shares, you get 4 ounces of gold.  With El Dorado, an intermediate company, you get more than 5 ounces of gold.  With a smaller producer like Perseus Mining, you get nearly 7 ounces of gold. 

So, you can get up to 7 ounces of gold for $1,000, or .62 ounces through the ETF.  Clearly he wasn’t making a recommendation on these stocks, he was just bringing to attention the tremendous value in the gold equities as a group."