Sometimes I ask myself a question. If I suddenly inherited a pot of money, and was required to keep it as an investment portfolio, what's the first thing I would do with it?
Right now, I'd devote a decent portion to gold mining stocks. And I'd buy the ones I've held for well over a year now -- Newmont Mining (NEM), Goldcorp (GG), Agnico-Eagles Mines (AEM) and the Market Vectors Gold Miners ETF (GDX).
Why? Because the mining stocks have underperformed the bullion, and offer value.
Of course, this is based on my conviction the gold bull remains intact. The price of gold could (and will probably) suffer a decent-sized correction at some point. I'm surprised we haven't really had on over the past year.
Peter Brimelow's MarketWatch column today discusses gold mining stocks -- and their chances for making up lost ground. You'll want to read it if you're a fellow traveler in this sector.