Investors seeking refuge from political uncertainty in the U.S. and Europe have piled into gold in recent weeks.  Its appeal has been further buoyed by a perception that the Federal Reserve would be slow to raise borrowing costs. Betting on miners has the advantage of giving exposure to dividends.

Betting on miners rather than gold brings the risks associated with investing in any company.  However, the advantages outweigh the costs if the metal rallies. The additional appeal of junior firms is that mergers or takeovers are more frequent and could raise their shares substantially.

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