Why stocks may be sniffing out inflation. Is it time to buy gold or gold miners? We think its a favorable trade. It wasn’t that long ago that it was gospel to have 5-10% of a conservative portfolio in gold. The price of gold plunged 28% last year. Now that everyone has been punished for following prudent advice, it might just be the perfect time to reconsider. Two ideas we have for this is the GLD ETF and the largest gold miner, Barrick Gold. ABX is in talks with Newmont Mining to merge the two large miners into the world’s largest gold mining company. The cost saving synergies are obvious plus some cutback in supply is warranted.
