Which Gold Stock Will Benefit the Most From Rising Bullion Prices?

All gold miners benefit from rising bullion prices, but some get a bigger boost than others. The real problem for investors is finding a miner in the precious metals industry that offers the right balance between risk and reward. A tiny, aggressive miner might triple in price as gold goes up but could end up a penny stock if prices go down. That is why investors looking to benefit from rising bullion prices should look at industry giant Newmont Mining Corp (NYSE: NEM).

At its core, gold mining is pretty simple to understand -- a company digs up the precious metal and sells it. It gets more difficult when you get into the details. For example, some mines are more productive than others. Mining costs generally go up as a mine ages. And some companies make extensive use of hedging to lock in gold prices. That can be beneficial at times but comes with risks.

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Source: Fool.com