Are These The Best Gold Stocks To Trade This Week?
Gold stocks have been on investors’ radar recently. That’s because gold has turned out to be a safe haven during this coronavirus pandemic. Like the technology sector, gold has had a meteoric rise. Analysts are wondering if we are in a “gold bubble”. Typically, investors use gold to hedge against market volatility and inflation. This year, the stock market crash and excessive stimulus are prompting investors to snap up more gold to ensure their portfolio is protected.
The gold price has now surpassed 10-year highs. At the time of writing, gold is trading at $1,989 an ounce. So, back to the golden question? Is there a bubble in gold? Well, even if you don’t mention it, the question probably pops up quite often in your mind. However, the good news here is, global central banks around the world are committing themselves to near-zero interest rates to spur demand in the global economies. As these monetary policies are more accommodating of inflation, these policy decisions are likely to boost gold prices in the near-term.
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Top Gold Stocks To Watch In September 2020: Barrick Gold
Barrick Gold (GOLD Stock Report) has been one of the most closely watched gold stocks in the space. The company received a further boost in its stock price when Berkshire Hathaway (BRK.A Stock Report) (BRK.B Stock Report) invested a significant stake in the company. After all, it was the Oracle of Omaha who made the acquisition. The legendary investor once stated:
“Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”
Having Warren Buffett as a substantial shareholder speaks volumes for the company. If you are looking for gold stocks to buy, you might want to add GOLD stock to your watchlist. Bear in mind that we are not suggesting you invest all your money in gold stocks. But having a bit of exposure to the yellow metal isn’t too bad of an idea.
Top Gold Stocks To Watch In September 2020: Kinross Gold
For investors looking for defensive gold stocks to buy, Kinross Gold (KGC Stock Report) is looking attractive at the moment. Kinross has been eyeing a London Stock Exchange listing, a move that would bring in European investors. The stock is quite cheap too. You could imagine some upside to the price.
KGC stocks are outperforming the industry. The stock has gained more than 40% over a span of 3 months. The company’s major growth projects and high gold prices are the reasons why KGC stocks are moving higher. Three of Kinross Gold’s largest mines are seeing record levels of production. What’s more, they managed to reduce the average cost of sales.
The mines are on track to expand throughput capacity. Amongst them, Paracatu is one of its largest producing mines of the company that is operating at a low cost of production and delivering strong output. With stellar throughout rates, high average realized gold price and respectable margins, would you include KGC stock on your watchlist?
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Top Gold Stocks To Watch In September 2020: Newmont Corporation
With a market capitalization of $54 billion, Newmont Corporation (NEM Stock Report) has been one of the best gold stocks to buy. According to the official website of Newmont Corporation, the company has the largest gold reserve base in the industry. If you would like to gain exposure to the gold industry but aren’t too keen to buy physical bullions or ETFs, NEM stock might be a top gold stock to add to your watchlist.
“Newmont continues to manage through the COVID pandemic from a position of strength and our diverse balanced portfolio of world-class assets provide stable production with significant reach to rising gold prices.”– Tom Palmer, CEO of Newmont Gold Corp.
The company reported lower production in its second quarter. But that’s simply because it placed five of its operations in care and maintenance. Having said that, investors shouldn’t be discouraged as the gold price is hovering around the $2,000 level. With all that in mind, NEM stock could still be a good investment assuming the gold price stays around this level or higher.