Barrick Gold Corporation (USA) (ABX), Goldcorp Inc. (USA) (GG): Do the Billions Spent Make Miners Cheap or Dangerous?

On the other side of the argument is the that there is convincing evidence that the current run in the stock market is driven by the current Fed policy. If the policy reverses, it may create a vacuum that drives stocks sharply lower. A significant fall in stocks will probably improve the picture for both gold and silver, making the current sell-off a potential buying opportunity.

With all of these swirling forces, the one probability is that volatility will increase. Increased volatility means increased risk, but the increased risk can be mitigated by taking a smaller position. Being aware of the forces at work is critical. Overall, maintaining an allocation to gold and silver is prudent, but allowing for the risks at play is paramount.

The article Do the Billions Spent Make Miners Cheap or Dangerous? originally appeared on Fool.com and is written by Doug Ehrman.

Fool contributor Doug Ehrman and The Motley Fool have no position in any of the stocks mentioned.

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