BHP

Virtually all the brokers are recommending buying BHP. It has dropped from its Apr 2011 high. That is true but nothing is improving in Europe, USA, China or Japan. In fact, it is getting worse. If you sum up BHP's market cap including those traded in London, then it is worth about 20% of Aussie stock market value. That means if you want a very averaged performance in your portfolio, just buy anytime!

Of course, it is a great company. In fact the biggest miner in the world with great projects and spread of commodities.

Personally, I would wait. But if I want to buy something now, just remember that POG is over USD$1600 per oz and cost of most production is under USD$1000, usually around USD$500 to 800. In other words, you can SEE the profit for gold producers. And if the world economy should collapse, taking with it, the value of currencies, then what better hedge than gold?

Market sentiment will rule in the short term. So gold producers will suffer the same fate as the rest of the stocks... until their profit announcements. However, there are also more and more reports asking investors to consider gold stocks. Try and seek out the PRODUCERS.