3 Gold Stocks To Own (ABX, GOLD, AUY)

The super-rich are buying gold to protect themselves, and although not everyone can be super-rich, you can invest like you are. Gold has been on a sharp rise recently, as it crossed the $1,300 an ounce mark, and "smart" money is betting that prices will go higher. UBS recently recommended its top-tier clients hold 7-10% of their assets in precious metals, particularly gold. The super rich are buying the actual metal, not just gold ETF's, or futures. Those of us who aren't exceedingly wealthy, or weren't born with a silver-spoon in our mouths (pun intended), can still profit from the trend of rising gold prices by buying some of the best gold miners out there. Barrick Gold Corporation ABX is one of the lowest cost producers of gold, and also engages in the exploration of gold, and mine development. The company recently reported strong earnings, and the company is reasonably cheap, trading at 10 times earnings, with a PEG ratio of 0.6. ABX has traded pretty much step-for-step with the SPDR Gold ETF GLD, as evidenced by this chart. Randgold Resources Limited GOLD is a gold stock which has a higher growth story than most other gold producers. This year, Randgold expects to earn $1.84, sharply higher than last years 84 cents. Next year, the earnings forecast jumps even higher, going to $4.14 per share. The stock is reasonably cheap on a PEG ratio scale, trading at 0.8, compared to its industry. It even pays a small dividend, 15 cents per share, despite being a strong growth stock. The last gold stock to consider is AngloGold Ashanti Ltd. AU. AngloGold is one of the larger gold companies, with a $16 billion market cap. Despite being one of the larger gold companies, it is also one of the fastest growing companies, growing its revenues at a nearly 50% clip. The stock is very cheap, when using a 5 year PEG ratio, trading at a 0.36 PEG. Analysts expect gold to continue to be in great demand for the foreseeable future, as economic concerns will persist for some time. Despite not being super wealthy, everyone can add some gold to their portfolios, and know that there will be an ever growing demand for the precious metal. As the Smash Mouth song 'All Star' says, "...all that glitters is gold".