In his latest RealMoney column, Validea CEO John Reese takes a look at some gold mining stocks that could benefit from a Eurozone money-printing program.
“In times of financial trouble, gold has long been used as a safe haven, and the world economy could certainly be considered to be in financial trouble at this time,” writes Reese. “If the [European Central Bank] buys up debt, it will have to print lots of money, and that would lead to an increase in demand for gold, just as happened when the U.S. Federal Reserve’s program of quantitative easing led to a surge in the price of gold during the past two years.”
Reese says that, “fortunately for investors who want to add this hard asset to their portfolios, several gold stocks now look like good investments.” He looks at several that get high marks from his “Guru Strategies”, each of which is based on the approach of a different investing great. Among the stocks he highlights: Barrick Gold Corporation, which gets high marks from his Peter Lynch-based model.