Economist Andy Xie thinks gold can reach US$2,000 an ounce in two to three years. Currently it is trading around US$955 an ounce.
Zhaojin Mining (1818) is worth considering. The gold miner listed in December 2006 at an IPO price of HK$12.68. It issued a bonus share at a ratio of one for one in April last year.
If you have been holding this stock since it listed, your cost would be HK$6.34. Besides, you would have received a dividend of 80 HK cents. At its close yesterday of HK$13.46, Zhaojin has had a 24 percent return in the last 2 years. During the same period, gold surged 47 percent from US$650 per ounce.
Zhaojin is an alternative to buying gold, offering you higher positive gearing. Dr Check and/or The Standard bear no responsibility for any investment decision made based on the views expressed in this column.
