Production hikes on the way for these two

Article Excerpt

Most gold stocks have moved down lately, along with gold prices. (Gold is down from almost $1,800 U.S. an ounce in September 2012 to $1,370 today.) Gold’s most recent drop came in response to concerns that Cyprus may sell some of its gold reserves as it deals with its financial crisis. Investors, who typically buy gold as a hedge against inflation, are also worried that the U.S. Federal Reserve may scale back its quantitative easing policy, which would slow inflation. The longer-term outlook for gold stocks is positive, although they will remain volatile. The best way for aggressive investors to invest in gold is to buy shares of companies with rising production that will give them strong cash flow even if gold prices fall further. Here are two examples: IAMGOLD $5.23 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold- .com; Shares outstanding: 376.6 million; Market cap: $1.9 billion; Dividend yield: 4.7%) owns 38% of the Sadiola mine and 40% of…