by RICHARD J. MATURI
Can the average investor successfully participate in the gold market without knowing the intricacies of
commodity trading, and without having to deal with the problems associated with owning precious
metals? The answer is yes. The volatility of gold prices provide ample opportunity for substantial profits
for the investor. During the past ten years, I have actively traded a NYSE gold mining stock, Benguet
(BE), with great success. Benguet is a producer of gold, and the stock can be traded for its play on the
price fluctuations of gold as well as giving the investor the opportunity to participate in the fortunes of
the company and the market overall.
A little over a year ago, I developed a trading strategy for Benguet in hopes of earning a 50's, gain after
commissions, a goal I thought was probably unrealistic. Instead, after a year of trading Benguet I realized
a totally unexpected gain of 163% over my original investment. During the period from March 1982
through March 1983, an average investment of $2,432 yielded a yearly gain of $3,971 after commissions.
This gain was in addition to any dividends paid, interest earned, and gains on other stocks while waiting
to purchase Benguet. Of course, the stock market boom contributed to my success, but if I had simply
purchased Benguet at the beginning of the period and sold it at the end, a gain of "only" 107%, would
have been earned; a difference of 56%, -- which is more than my original investment goal. All this while
the price of gold from the beginning to the end of the period varied little.