MMs Gold stock preferences please
Hi, I hold a small gold stock at the moment, MEK, but I am looking to also hold one of the bigger boys, which out of the main gold stocks in Australia is your preferred pick.
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Answer
Hi Chris,
As the USD weakens and gold starts to rally we are bullish on the very oversold/cheap gold sector.
When a sector starts to bounce hard, it is the laggards that often do best, and Newcrest (NCM) which we own in our Flagship Growth Portfolio has underperformed the sector and is our preferred play. We also like Northern Star (NST) and Regis Resources (RRL) which comes with a higher beta i.e. greater risk/reward, while St Barbara (SBM) is more likely to attract corporate activity in our view.
Overall we can see gold stocks being a shining light if we do indeed enjoy a strong Christmas rally.
