Australian Gold Stocks

Ever wondered how to get some exposure on Gold price movements? We all know the precious metal itself has gone gang busters for a while, offering stability in an uncertain market. So how do you, as an investor or a trader obtain exposure to this golden commodity? Well, there are a few ways: you can physically buy gold through jewelry or even bullion if you are that ambitious. You can get direct exposure by investing in Exchange Traded Funds (ETFs) with physical gold backed shares, or through a contract on a futures exchange, dealer or market maker. There is also the indirect exposure through ownership of Australian gold stocks: of either small cap or large cap gold producers.

In the Australian Stock Market, Macquarie Research Equities (MRE) prefer Lihir Gold (LHG) with an outperform recommendation and a 12 month share price target of $4.40. On the other hand MRE have downgraded an outperform rating for Newcrest Mining (NCM) to Neutral with a 12 month share price target of $24. The reason given was the downside risk from the company's flagship Telfer mine.