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Gold miners surge again: Is it time to buy?

The Australian share market has followed the lead of international markets and is down sharply today after the Trump-Comey controversy continues to intensify and weigh heavily on investor sentiment.

Unsurprisingly this has led to a flight to safety and taken the spot gold price to its highest level in two weeks.

At present the spot gold price is fetching approximately US$1,258 an ounce.

As you might expect, Australia’s leading gold producers have surged higher today and taken the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) 2% higher.

Highlights include the Newcrest Mining Limited (ASX: NCM) share price and the St Barbara Ltd (ASX: SBM) share price which are each up around 3%.

Elsewhere Regis Resources Limited (ASX: RRL), Resolute Mining Limited (ASX: RSG), and Perseus Mining Limited (ASX: PRU) have also made notably strong gains.

Should you invest in gold?

Whilst I do think that a little bit of exposure to gold is good for a balanced portfolio, I’m still not overly convinced that now is the time to open a position.

If rates in the United States do rise as expected this year regardless of the Trump-Comey saga, then I expect the gold price and miners to come under pressure.

But if you’re not as bearish on gold as I am then adding a bit of gold to your portfolio with an investment in a high quality miner like Newcrest may not be a bad idea.

If on the other hand you are bearish on the gold price like I am, an investment in one of these exciting growth shares could be just the ticket.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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