Gold miners are clearly a risky investment after a 27% flop year-to-date and a 50% flop from 2011’s highs. And unlike a lot of the other investments on this list, gold miners are much more susceptible to sentiment since gold isn’t exactly the same kind of play based on a “useful” assets like real estate, steel or oil.
Still, Goldcorp (GG) looks good to those wanting a hedge against inflation. The company’s EPS estimates have been moving up, and upgrades across the sector hint that the worst may be over for gold miners after their crash and burn. Daniel Putnam recently outlined the bull case for gold mining stocks with pretty compelling detail, and his take is worth a read by any investor looking at mining stocks as an inflation hedge.
After all, no stock is better for fending off inflationary pressures than a gold stock.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.