Gold has been long considered a safe haven asset that would be a safer investment in uncertain times. In the last three months, gold has risen over 20%. It’s a sign that investors are looking for surer investments and changing their strategy to more defensive assets. Analysts are bullish on gold prices long-term. Volatility usually means higher gold prices and right now, there is momentum.
Gold Investment is always considered to be safe haven.🥇
When the Currency ($) value falls, it drastically affects all parts of the Stock market except the yellow-metal. The price of this yellow-metal skyrocketed after the Financial Crisis of 2008 or any decline in the Currency rates. People find it as a hedge against Inflation.
During such bad financial times, Investors are seen to divest their stocks and invest in Gold. They wave back again into cheaper stocks, once Gold prices no more shoot up, rather reverts to stability.
Here we bring in 12 Gold Stocks which are highly recommended …
Agnico-Eagle Mines (AEM-T)
A Canadian based gold producer with operations in Finland and Mexico. It has moved up along with others. They have safe assets in stable countries.
Lots of analysts favour this. Production profile is promising. Hasn't studied it from a valuation point of view, and as a value investor, valuing gold companies has always been a struggle. His gold exposure is under 3%. If you own it, probably still hold it.
Detour Gold (DGC-T)
A Canadian intermediate gold mining company with a flagship mine in Detour Lake, Ontario. They are a low cost producer, with an asset that has a big reserve.
Had a bit of the stumble about a year ago, which caused a delay in one of their mines. They seem to be getting past that now and things seem to be getting back on track. It could be a potential investment, but he wouldn’t put all his eggs in one basket.
Alamos Gold Inc (AGI-T)
They are a junior gold producer with cash flow that comes from a mine in Mexico. The stock will benefit form rising gold prices, and moving averages are pointing for it to rise. It may be over bought recently.
A lot of investors owned a company they acquired and so sold. You are getting the acquisition for free. (Analysts’ target: $11.21).
Eldorado Gold (ELD-T)
A Canadian mid-cap gold miner with operations across the world. This stock runs well ahead of the group, so it may be a little overvalued. The gold cycle is picking up so it could go higher still.
Has some very good assets, but unfortunately in some difficult environments, Greece being front and centre. Probably trades at a 30%-40% discount to its peers. A very low cost producer and great margins. Material growth down the road over the next 5 years. Unfortunately, they are in a bit of a battle with the more…
Yamana Gold Inc. (YRI-T)
A Canadian based gold producer. It does carry a lot of debt, but the stock price is improving, and it recently broke through an important resistance level.
Keeps looking at it. He focuses on good management, low cost of production, good reserves on the ground, and geo-politically stable. It’s getting to point of generating free cash flow. Great job of putting things together.
Goldex Resources Corp. (GDX-X)
A U.S. listed gold miner stock that is a play on volatility. The stock’s seasonal strength is from the end of June to October. In a difficult market, it is a good stock to have.
It is 67% cash. We saw a crack on the price of gold – we cracked the line of resistance. Seasonal strength is end of July to end of October. We see early signs of producers outperforming the commodity. It is a play on volatility, which is seasonal this time of year. The Indian tax…
Barrick Gold (ABX-T)
The largest gold mining company in the world, headquartered in Toronto. They are currently currying costs out of an acquisition.
Pretty positive. Wants to go higher. Battle between bulls and bears is around $18. Rising lows. Good seasonal time to look at it. He owns FNV. Good risk/reward here, and sometimes that's all you can ask for in investing. If you're a longer-term investor, you can buy this today but not the whole thing until…
Kinross Gold (K-T)
A gold and silver mining company and one of the largest producers of it. It’s broken out of resistance recently, even though they have been facing some challenges from local government regulation.
This has some interesting growth going forward. They’ve basically had to take lemons and make lemonade. Going forward, it is interesting to watch. He is waiting for the balance sheet to improve and getting more clarity on what is happening with their mine in Mauritania.
Kirkland Lake Gold (KL-T)
A go-to name in this gold rally. The valuation is a little inflated but the company is in a good position, especially as interest rates decline. One of the best gold companies.
The operational performance has been extraordinary. You are paying up for quality now after the stock had a big run.
New Gold Inc. (NGD-T)
A multinational mining company active in gold, silver and copper mining. Analysts have confidence in management and doesn’t expect it to be taken over soon.
Have access to high-quality deals, because of the quality of the board and management team. He is struggling to see the new leg of growth. Their Blackwater or Rainy River projects probably made more sense in a higher gold price environment. Rainy River probably has a better chance of eventually coming into a play that…
Premier Gold Mines (PG-T)
The company has good managers and low cost of production. They are well located in a safer part of the world as well. They also have a join venture with Barrick.
(A Top Pick Jan 16/14. Up 27.92%.) Has just become a producer in Nevada. Nice cash flow generator. Short mine life of about 1.5 years, and might generate close to $100 million during that time. Also, thinks they will have about $100 million in cash by the end of the year. They bought Mercedes from…
Centerra Gold Inc (CG-T)
A Canadian company based in Toronto. It has good volume and is one of the fastest growing producers in the world. It also has a good management team.
Long on this stock and Sell the February Calls options for $1.10. He gets $2.77 yield for the options for less than a month. He makes 4% and they expire on Saturday.