With 2012 just beginning, now's a smart time to gauge how the stocks you're interested in are likely to do this year and beyond. By knowing what stock analysts and fellow investors expect from a stock, you'll be smarter about whether you should keep buy it for your portfolio -- or sell it if you already own it.
Today, let's take a look at Central Fund of Canada
Forecasts on Central Fund of Canada
|Current Premium to Net Asset Value||1.8%|
|Coin Dealers Avg. Prediction for Gold Price at end of 2012||$1,976|
|Coin Dealers Avg. Prediction for Silver Price at end of 2012||$48.73|
|CAPS Rating (out of 5)||***|
Sources: Central Fund website; Professional Numismatists Guild.
How will 2012 go for Central Fund?
Central Fund opens the New Year with interesting conditions in the market. Gold finished 2011 up by about 10%, while the silver-owning iShares Silver Trust
But recently, there's been a huge disconnect between bullion-owning investment vehicles and the actual mining companies that dig up gold, silver, and other precious metals. For instance, you'd expect Silver Wheaton
Many miners did even worse, with both Hecla Mining
But most analysts expect gold and silver mining stocks to regain ground in 2012. With higher gold and silver bullion forecasts as well, Central Fund might underperform the miners but still post decent gains this year. It's not a risk-free bet, though -- if an economic recovery threatens to push interest rates higher, then bullion could lose the backing of cheaply financed speculative investment.
Among gold miners, we have a stock we like the best. Check out the Motley Fool's latest special report on gold to find out the tiny gold stock digging up massive profits. It's free -- but only available for a limited time.
Click here to add Central Fund of Canada to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.
Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.