All stock values are subject to energy costs, management decisions, and safety issues. Mining for gold requires enormous amounts of gas, oil, and electric. Rising energy costs cuts their profitability. Miners also can go on strike and demand higher wages. See article: http://news.yahoo.com/s/afp/20080716/wl_africa_afp/safricamininggold_080716105233

As we all know too well energy cost are skyrocketing. Just because a gold mining company can sell their product for a higher price does not mean their profit margin is getting larger, you must also take into consideration the increase in the costs (wages, gas, oil, and electric, etc.)

A management decision might include buying a field because a geological survey said there was gold there. The company digs and digs but finds no gold. As far as safety goes, let's assume a gold mining company has one of their tunnels collapse and kills twelve miners. The miners' families sue the gold mining company and successfully prove in court the company knew about the dangers, ignored previous warnings and possibly management did it on purpose because only the workers with bad annual reviews got asked to work in the danger zone. The stock price goes down in these circumstances regardless of what the spot price of gold is.

If you had gold coins instead of stock you wouldn't need to worry about any of these things. The coins' value is based on the spot price of gold. There is no hidden RISK.

Gold has gone up about 43%, Silver is up close to 58% in the last 52 weeks while all the major mutual funds are posting losses. Trade your losers for a winner!

If you are interested in learning about diversifying your portfolio with precious metals call Tamara 303-771-5825 at Golden IRA's & Investments, Inc. I love to educate others about protecting their accumulated wealth. You may also visit www.goldeniras.com to learn more.