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.
Mine shut-downs? He is holding on this one and has no concerns about COVID-19 related shut downs. He has it as a buy and is a mainstay of his portfolio. This would be ideal for the sector as it would flush out paper traders, who don't own the underlying shares.
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.
A new addition to his portfolio. An example of how cheap it is trading relative to earnings. He has an $11.50 price target. A great low-cost producer with good potential going forward.
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.
He does not like gold or gold stocks. If there is a reset to get us out of this mess, these companies will have a hard time because their expenses are going to go up as well due to inflation. He does not see gold stocks seriously outperforming here.
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.
He does not like this ETF. He would prefer to own the shares, not just holding derivatives. This can cause discounts to NAV at times. He would prefer to hold solid producers like FNV or ABX. If you want an ETF, he would pick HGGG.
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.
(A Top Pick Mar 15/19, Down 1%) He was taking profit on the way up. They recently merged with another producer and has since shut that mine due to COVID-19. He still has it as a buy with a $53 target.
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.