UK 11:59 Saturday, 24 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
“Toast”. I nearly spat out my breakfast when I heard the CEO of Randgold Resources (RRS) use that word to describe the majority of his competitors in the gold mining space at prevailing commodity prices.
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Comments
MrMoto
Thankyou, just what I needed. I’ve always liked the look of Randgold, thanks for the advice as I hope to trudge through the minefield of gold stocks. Maybe too small for you to cover but would like some coverage on others such as Amara and Caledonia at some point.
Andrew
Chris,
I really enjoy your articles but I struggle to understand the appeal of gold in the modern world. I am a novice investor so ignore my ignorance. What do you know that Warren Buffett (who poo poos gold) doesn’t?
Chris Bailey
@MrMoto – thanks for the comment. I do tend to be larger cap centred – and being a global investor there is naturally a lot to cover. My advice however even for smaller cap gold stocks is (1) do they have rising production with good control of costs?; (2) what is the grade of their deposit?; (3) are they generating cash or do they need cash? If you get answers to these questions and add on some credibility of management thoughts then you will be a long way in answering whether they are good potential investments or not
@Andrew – thanks for the comment. Novice or expert views are always welcome – no-one has the monopoly on the truth (i certainly don’t) – and if anyone tells you otherwise then don’t listen to them. Warren B is a longer-term investor who has been very well rewarded from the unprecedented equities boom since the 1950s (combined with the power of compound interest). I personally like many of his concepts including the need for ‘mixer’ investments. For Warren’s investment vehicle Berkshire Hathaway this is ‘catastrophe bonds’ and other leftfield reinsurance industry positioning which provides him with an uncorrelated stream of cash/capital gain over a cycle versus equities smoothing out his total return. Individuals like you and me have fewer instruments at our disposal. Traditionally fixed income has played this role but almost all yields are too low, ditto cash in the bank. Given the big build up of debt in the world over the last generation or two I like an investment which has longevity and worth if it generally ‘hits the fan’. So I maintain 5-10% of my diversified pension fund portfolio in gold. Currently it is near the top of this range with the aforementioned Randgold by far and away the biggest position. Hope that helps.