Is gold a high risk investment?

Question

The company I am alluding to here is Aurizon Mines (AMEX: AZK)

Answer 1

technically: good long-term run however, the stock price seems to have broken a lot of strong supports.

fundamentally: financial statements not too impressive, especially with the amount of money they lost in 2006.

summary: stock still has a lot of downside risk. suggest to wait until the price shows a technical break-out from $5.00 resistance - that should happen once the company shows ability to make money during the next few quarters. note that "sustainability to make money" is always important fundamentally.

Answer 2

All miners have a high risk factor involved w/them.  It's expensive to get the gold out of the ground and they're only productive when the price exceeds that cost...many had sat dormant for sometime till recent price spikes put them back in production.  Another thing is to look for miners that mine MORE than just gold as their diversification will keep them busy and profitable.  Suggest you look at AUY or TGB...both are producers of gold and more...peace!

Answer 3

In general, yes.

My favorite gold quote:

"[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."

- Warren Buffett

Answer 4

This is not exactly a low risk investment.  It most probably falls into the classification of speculation.  But they are making money, not much but some.  Of course the price of gold has fallen some and if it continues to do so, they can probably kiss their profit goodbye as opposed to good buy.

Don't you just love the English language?