by Richard Maturi
The November/December 1983 issue of Technical Analysis of Stocks and Commodities carried an article
of mine entitled "Gold Stocks" which addressed the following question:
"Can the average investor successfully participate in the gold market without having to deal with the
problems associated with owning precious metals?"
In the article, I detailed my successful trading strategy of buying Benguet, a NYSE gold mining stock
during the period March 1982 through March 1983. Benguet is a producer of gold as well as copper and
chromite and its 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 stock market overall.
The basic strategy was to sell Benguet for a gain of a half point per trade and earn a high return through a
large number of trades during the year. Although my trading strategy proved very successful during the
initial period with a return of 163%, changing market conditions warranted a review of my Benguet
investments during the next yearly period and a look at future investment opportunities.