Goldcorp Inc. (USA) (GG), Gold Fields Limited (ADR) (GFI): Have Gold Miners Lost Their Luster?

Production halts are just one of the many potential missteps that can befall an investor in a gold miner. Consider this quote from Barrick Gold Corporation (USA) (NYSE:ABX) CEO Jamie Sokalsky after the company booked a massive impairment charge: “Rising costs, poor capital allocation and the pursuit of production growth at any cost in the industry have led to declining equity valuations across the sector. The message is clear: the industry must chart a new path forward.” While Barrick is now charting that path, it’s stock has still been hit hard this year.

With that as a backdrop, is it time to buy a gold miner? Only if you have a long-term time horizon and are investing in the business and not the ticker symbol. Each company mentioned has its own unique set of risk factors that will play into its long-term performance beyond what the price of gold does.

The article Have Gold Miners Lost Their Luster? originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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