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.
They are a senior gold producer operating in low risk regions. They are not reliant on just a few mines. She does not have much gold exposure their portfolios, but this would be a good one to hold.
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.
They are in the process of being taken over by KL-T. The chart for DGC-T looks fairly bullish otherwise. He would buy it here unless you thought another buyer would come along.
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.
He quant model suggests this offers the best growth opportunity for a gold producer. Free cash flow grew by 100% last year and should grow by over 40% in 2021. He sees 25% upside. Yield 0.78% (Analysts’ price target is $12.22)
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.
They exploded today with good news from Turkey. However, there is geopolitical risk in Turkey. They are moving forward with their project but he would avoid geopolitical risk. (Analysts’ price target is $10.50)
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.
It has been a relief overall. It is similar to Gold Bullion. He would hold off on it right now. Gold stocks have gotten ahead of the bullion.
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's range-trader. During flight-to-safety periods (as he expects in the next few years when market become unglued), gold will shine again with a good rally. He's added to his position. GDX is US-listed gold miners. Gold stocks vs. gold price are 35-year lows, and gold stock vs. the S&P 500 are as cheap pre-Recesssion (2005-6).…
Barrick Gold (ABX-T)
The largest gold mining company in the world, headquartered in Toronto. They are currently currying costs out of an acquisition.
A huge gold company. He took a good look at them two years ago and then last week, and he feels KL-T is the best premier gold company in Canada. He thinks all gold companies will benefit if gold does what he thinks it will do.
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.
The earnings were good. He just doesn't like these big companies. He has done better with the other producers. He would go with Agnico that presents a better value. (Analysts’ price target is $9.25)
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.
They are hands down the best gold company in the world. They have no debt and low cost of production, which is growing. They are a nice size position for him. (Analysts’ price target is $66.70)
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.
Doesn't think there will be a take-over soon. The CEO used to be the CEO of Richmond Mines. They now have an operator. On their watch list and he has confidence in management.
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.
It's a sum-of-the-parts story with three moving parts. The knock on it was they always needed to finance, but they financed. He likes their assets, including a joint venture with Barrick, which is worth PG's market cap alone. Their Ontario and Mexico assets are extraneous and will likely be sold. (Analysts’ price target is $3.93)
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.
He's leery of it. It's cheap on paper, but has ongoing political-social problems at one of their mines. Also, their BC mines have operational problems.