Some investors who bought gold in the past year are wondering if their losses will get worse.
While the price of gold itself is down about 22% this year, gold mining stocks have performed much worse, some down 50%. Gold miners spent a lot of money in the 2000s buying assets to improve gold production, but with slumping gold prices, these companies are now just trying to survive. Investors who are considering buying gold or gold stocks should be very careful. Gold can be a higher-risk play than investing in stocks. If the U.S. economy continues to grow and inflation remains tame, gold prices may remain flat for a while.
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