A recent Wall Street Journal article compared investing in the Dolin Gold Mine with one of Clint Eastwood’s most famous characters: Police Inspector Harry Callahan from the ‘Dirty Harry’ series.
In the so called ‘Dirty Harry’ portfolio, writer Brett Arends outlines what he calls “Five big bets for the brave.”
At number four, sandwiched between Phoenix Arizona real estate and Nokia Cell phones, is the Dolin Gold Mine.
Arends calls the mine, which is jointly owned by Barrick Gold and NovaGold, a high risk investment because the mine has yet to produce a single ounce of gold.
He says investing in gold can be a hot ticket item, but it’s risky as you are tied to future gold prices.
NovaGold’s stock has fluctuated mightily since 2007, where it reached a peak of $20.94 per share. In December 2008, the stock had plummeted to just $.45 per share.
Between 2008 and 2012, NovaGold stock had ballooned to over $16 share, but has since declined. It currently sits at $5.83 per share.