Emotional influences -- especially your emotions -- can also affect market prices and investment strategies and decisions. For many investors, gold's emotional appeal and belief in its enduring value make for disabling effects. They lose sight of market fundamentals and basic investor maxims about cutting losses, making quick decisions, and hedging risks. They fail to take profits when they can and tend to let fear and greed get the upper hand.
I once knew a wealthy Canadian, a retired businessman worth near a hundred million dollars who started speculating in the gold market in the late 1970s on the reasoning that the dollar was doomed to continuing decline. For a time, he did remarkably well, but then lost almost everything when the market turned against him as Reagan's economic policies took hold and the dollar rose in value. Oddly, the Canadian was a stalwart conservative who greatly admired Reagan and agreed with his policies even as he failed to reckon with the effects of their success on his speculative position in the gold market.
The bottom line: the gold markets, including that for gold mining stocks, are especially opaque and tricky for investors. I would avoid gold and gold mining stocks, and if I did get in, I would not put more at risk than I was willing to lose. Above all, I would not fall in love with gold or become a believer if I became an investor in it or in gold mining stocks.
(I prefer silver because it has actual valuable uses besides jewelery and from my research there is less available ounces of silver then gold because of it)...Do your own DD