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Gold/Mining/Energy : Precious and Base Metal Investing

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To: Condor who wrote (6643)1/8/2003 7:00:18 AM
From: tyc:>  Read Replies (1) of 39344
 
The Gold I would choose for a balanced portfolio is spelled ABX.

I believe that the price is depressed right now because of the perception of the risk that their hedge position will blow up. But if you believe in diversification, you believe that the higher the perceived risk the higher the return. The probabilities are that from current risk-depressed price levels, ABX will outperform the less risky unhedged miners. Don't you have a balanced portfolio to reduce the overall risk while enjoying the high returns of the individual components ?
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