By Jason Fittler
Now is a good time to own gold, when the market is under pressure investors turn to gold as a safe haven.
However, holding physical gold has its own problems.
I think Newcrest is the next best thing.
While gold output has declined by 5% quarter on quarter, Newcrest has maintained their production levels of both Gold and Copper while keeping costs under control. Long term we expect to see production increase by 40% in 2014 while costs are set to fall some 30%.
With the gold price set to hold at current levels, Newcrest is a good long term portfolio stock which allows you to gain some exposure to the gold price while at the same time have the equity risk exposure to the company.
The stock is currently trading around our current price target as such it is good buying at these prices for a long term holding. If you are chasing a trading opportunity you may want to keep an eye on the gold price and look to buy into Newcrest on any dips in the share price.
Going forward all investors should look to have some exposure to the gold price.
If you would like more information on Newcrest Mining (NCM) please give us a call on (07) 4771 4577.