I am thinking of going long on Gold mining shares in the next few months, as a "proxy" to own gold. Some may argue it is not a proxy for physical gold.{In the absence of some exchanged trade fund for gold, owning physical gold is quite a drag}.
Can you suggests some unhedged gold nmining shares
with good fundamentals? Would you think it is better buying into the ahares or getting into the long term options such as the leaps?
By far, my biggest position in gold stocks is in Newmont Mining (NEM). I detailed my reasons for choosing NEM in Issue No. 10 of the SMR. I own both the common stock and the LEAPS. The common is more liquid than the options, so I sometimes trade the common, or write options against the common, and just hold the LEAPS. If you want to choose one over the other, and you're looking to buy and hold for awhile, I think the in-the-money LEAPS will give you more leverage and still allow you to limit your risk.
Some other unhedged gold companies include Agnico Eagle Mines (AEM), Glamis Gold (GLG), Gold Fields (GFI), Goldcorp (GG), Harmony (HMY), Meridian (MDG), and Royal Gold (RGLD). I know nothing about the fundamentals with any of them, so make sure you research before you buy.
The next time I buy more gold stocks, I may take a close look at Barrick Gold (ABX). They are one of the big market cap companies, and their performance has been held back because of their hedging activities and poor management. But it is my understanding that they have new management, and they have sharply decreased their hedging activities. So the stock may be cheap.