Four gold stocks to buy as the precious metal price reaches record highs feature mining companies that have been on the rise.
The four gold stocks to buy may climb as geopolitical risks mount due to Russia’s intensified invasion of Ukraine and the Oct. 7 attack and murder of 1,200 civilian in Israeli at the hands of Hamas militants that started a war in the Middle East. Gold traditionally performs well during times of upheaval and U.S. dollar depreciation, spurring interest in the precious yellow metal as insurance during tumultuous times.
Gold continues to set record highs, supported by central bank buying — primarily from Asia — and heightened consumer demand in India and China, said Bob Carlson, a former pension fund chairman who heads the Retirement Watch investment newsletter and the proprietary IRA Calculator. In many parts of the world, gold is a way to shield savings from a possible bank crisis or even government confiscation of traceable personal assets in certain countries.
Bob Carlson, head of Retirement Watch, gives an interview to Paul Dykewicz.
The price of gold is reaching record highs and closed at $2,547.20 on Tuesday, Sept. 10. The mining industry has a favorable outlook. Gold remains a safe-haven asset amid times of economic uncertainty.
Four Gold Stocks to Buy: Newmont Corporation
The Fast Money Alert trading service that uses both stocks and options recommended Denver-based Newmont Corporation (NYSE: NEM) successfully earlier this year to notch a profit of 18.55% when it was sold on Sept. 3. The Fast Money Alert advisory service, co-led by Mark Skousen, PhD, and Jim Woods, has been strategically recommending precious metals, other commodities and cryptocurrency investments as alternatives to the traditional stock market.
Ben Franklin scion Mark Skousen, who heads Five Star Trader and Forecasts & Strategies, talks to Paul Dykewicz.
Newmont operates gold mines worldwide and is the largest gold miner in the world. The company also produces copper, silver, zinc and lead.
Chart courtesy of www.stockcharts.com
Bullish conditions in gold and copper are driving Newmont. Newmont no longer is a current recommendation of Fast Money Alert but it is poised to climb if interest rates cuts begin in the United States and other countries follow the same strategy.
Jim Woods, a former U.S. Army paratrooper, Successful Investing and co-heads Fast Money Alert.
Four Gold Stocks to Buy: Agnico Eagle Mines
Toronto-based Agnico Eagle Mines (NYSE: AEM) produced a profit of 21.03% for Fast Money Alert subscribers when the position was sold in May 2024. The related options produced a gain of 144.29% as another short-term trade.
The key is to “skate where the puck is going,” and not where the puck has already been — a sports maxim quoting “The Great One,” hockey legend Wayne Gretsky, Skousen and Woods wrote in Fast Money Alert.
A confluence of positives for the yellow metal has sent gold prices to new highs, the duo wrote. Those positives are a falling U.S. dollar, the likelihood of lower interest rates as soon as September 2024, gold’s hedge properties and geopolitical uncertainty, they added.
Taking advantage of a golden opportunity can be had via buying the yellow metal directly, as in via physical gold, but the Fast Money Alert service seeks to profit quickly. That means it recommends stocks that mine gold and that offer attractive call options as ways to achieve gains and lock them in by selling soon thereafter.
Chart courtesy of www.stockcharts.com
Agnico-Eagle Mines Limited owns and operates gold mines in Canada, Mexico, Finland and Australia. Agnico operated just one mine, LaRonde, as recently as 2008 before bringing its other mines online in rapid succession in the following years. It merged with Kirkland Lake Gold in 2022, acquiring the Detour Lake and Macassa mines in Canada, along with the high-grade, low-cost Fosterville mine in Australia.
Agnico-Eagle produced more than 3.4 million gold ounces in 2023 and had about 15 years of gold reserves at the end of 2023. Agnico Eagle is focused on increasing gold production in lower-risk jurisdictions and bought the remaining 50% of its Canadian Malartic mine along with the Wasamac project and other assets from Yamana Gold in 2023.
This formula and positioning have worked extremely well for AEM, according to Fast Money Alert. For the past several years, AEM’s earnings growth is in the top 7% of all public companies, the advisory service added.
Four Gold Stocks to Buy: Kinross Gold
Skousen’s Low-priced Stock Trader advisory service also recommends both stocks and related call options that include gold stocks. One example is its recommendation of Kinross Gold (NYSE: KGC), founded in 1993 and headquartered in Toronto.
Kinross has a diverse portfolio of mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana. The company’s diversified asset portfolio is a significant strength, reducing geopolitical risks and ensuring a steady production stream. The company has also demonstrated great operational efficiency, Skousen wrote.
Its Tasiast mine in Mauritania, for example, has undergone successful expansions, significantly increasing production and lowering costs per ounce. And Kinross is well-positioned for future growth through its exploration program aimed at discovering new resources and extending the life of its existing mines.
This exploration success not only adds to the company’s reserves but also provides long-term growth opportunities.
Chart courtesy of www.stockcharts.com
Four Gold Stocks to Buy: Harmony Gold Mining Co. Ltd.
South Africa’s Harmony Gold Mining Co. Ltd. (NYSE: HMY), also is benefiting from central banks, especially China, buying gold in record amounts. In 2023, central banks purchased over 1,037 tons of gold. In 2024, 30% of central banks have announced plans to increase their gold reserves, the highest projection since the survey began in 2018, according to Skousen’s Low-priced Stock Trader advisory service.
Consumer demand for gold in China and India is increasing, given the weakness of the Chinese yuan, Skousen said. Meanwhile, the declining supply in old mines and lack of new mines suggests a growing demand-supply gap, which is likely to drive gold prices higher, Skousen opined.
Last year, Harmony produced nearly 1.2 million ounces of gold, a 10% increase from the previous year, and plans to produce 1.55 million ounces this year. Free cash flow surged 171% in the past year to $468 million.
Chart courtesy of www.stockcharts.com
Harmony is working hard to reduce its debt load and cost of production to $1,457 per ounce. The Low-priced Stock Trader advisory service recommends Harmony earlier this year and advised its subscribers to sell the stock for a 27.20% gain. Skousen also recommended it recently in his Five Star Trader advisory service and ended up with a short-term profit of about 4% when the position was sold on Aug. 22.
For investors looking to profit from record gold prices, the expected interest rate cuts in the United States and other countries in the weeks and months ahead should propel precious metals stocks upward.
Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is the editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. Follow Paul on Twitter @PaulDykewicz.
