A Guide to Analyst Recommendations

Gold bugs are spoiled for choice when it comes to investing in mining companies. In some ways that’s good, but it can be difficult to wade through all of the information available while also keeping an eye on the gold market overall. Analyst recommendations can help investors gain a fuller picture of the state of broad or specific markets and can inform their next steps; accordingly, it is helpful for gold investors to understand analyst recommendations.

For investors, the wisest way to use analyst recommendations is to consider them just one piece of their research. Investors who have difficulty understanding precisely what these documents mean can look for other sources of information, such as news articles and press releases, that may give more insight into the the company or portfolio.

It’s also a good idea to look at as many consensus recommendations as possible. These are often available in publications geared toward investors in particular markets and can measure the opinions of analysts whose predictions are outliers in the investing conversation.

Finally, investors might choose to consider analyst recommendations as flags that point them towards further research in a company or a portfolio. Using recommendations in this way is a method that can allow investors to stay caught up on the latest trends and currents in the market — and on companies they may not be familiar with yet.