If you've heard enough about gold to pique your interest, but the logistics of owning bullion give you pause, then consider burying your gold underground.
Put away your shovels, Fools! Quality gold mining stocks are the next-best thing to bullion in the ground, precisely because ... they have lots of bullion in the ground. Agnico-Eagle Mines
The concept is not unique to gold. I offered the same perspective on a production shortfall by Silver Wheaton
While the delay at Agnico's Kittila mine might leave me wishing I had selected rival Yamana Gold
Agnico-Eagle could never have become my top pick if it had laid all its golden eggs in the same nest. To the contrary, Agnico poured first gold at its Lapa mine last week, and the Pinos Altos project remains on track for the third quarter. Significantly, existing mines sufficed for an impressive 80% production increase over the prior year, at total cash costs of just $312 per ounce. Agnico earned $54.3 million with the help of a $38.6 million tax recovery.
I have suggested that gold is best suited for the long-term investor, and that near-term volatility is but a distraction from a multi-year bull market for precious metals. Although Barrick Gold
Agnico-Eagle has received a modest three-star rating out of a possible five stars from the community of investors at Motley Fool CAPS. Head to CAPS if you want to give this stock your golden seal of approval.
Fool contributor Christopher Barker is not too old to wait for gold. He can be found blogging actively and acting Foolishly within the CAPS community under the username TMFSinchiruna. He owns shares of Agnico-Eagle Mines, Arch Coal, Silver Wheaton, and Yamana Gold. The Motley Fool has a gilded disclosure policy.