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Commodity Investing

3 Gold Stocks to Watch in August 2019

Why Invest in Gold?

Mankind has always valued gold. The world’s earliest civilizations used gold coins as currency. And until 1971, the U.S. adhered to the gold standard, where every dollar was worth its weight in gold. Society always has and always will value gold. It’s what people return to when other currencies fail. Gold can hold its value when markets are tanking and it can be a solid hedge against inflation.

Gold On The Rise in 2019

In times of economic turmoil, gold prices tend to go up and gold stocks perform well. Whether it’s in gold mining, production, or refinement, the gold industry can thrive when there is unrest.

And so far, 2019 is turning out to be a great year for gold. Gold stocks across the board are on the rise.

The SPDR Gold Shares ETF (NYSEARCA: GLD), the world’s largest gold ETF, has gone up 11%. About one tenth of those gains have come in the last two months. Also, the VanEck Vectors Gold Miners ETF (NYSEARCA: GDX) has returned 32% year-to-date. Gold investors are thrilled that the bear market is over. It seems this gold bull run has legs.

The price of gold is constantly changing. But today gold costs $1,420 per ounce. With that in mind here are the top three gold stocks to watch this August.

Top 3 Gold Stocks to Watch in August 2019 

Agnico Eagle Mines (NYSE: AEM)

  • Market Cap: $12.63 billion

Agnico is one of the hottest gold stocks on the market right now. The mining company posted quarterly earnings of $0.10 per share, which is higher than the Zacks Consensus Estimate of $0.02 per share. Just one year ago Agnico reported earnings of $0.01 per share. This gold stock has outperformed earnings per share estimates for the last four quarters. Investor would love to see Agnico continue this growth trajectory, but that comes down to management. For reference, Agnico shares have added 37% this the beginning of the year, while the S&P 500 has only gained 19%.

Yamano Gold (NYSE: AUY)

  • Market Cap: $2.73 billion

Yamano is expected to release its second quarter earnings today. While the earnings report may reveal new information, this company was a “buy” from 69% of analysts at the end of March. On April 15, the company agreed to sell its Chapada mine to Lundin Gold for $1 billion. On the heels of such a big sale, the Yamano’s board of directors agreed to double its dividend. Investors have had mixed emotions about the sale. On one hand, they are happy to receive a larger dividend, but on the other hand, they are worried this might affect the company’s overall production. For now, Yamano is one of the best gold stocks on the market.

Eldorado Gold (NYSE: EGO)

  • Market Cap: $1.23 billion

Eldorado is a mid-cap Canadian gold mining company that has gone up 160% this year. Part of Eldorado’s positive earnings is thanks to the price of gold increasing. An even bigger part of Eldorado’s success is its reopening of the Kilsadag mine in Turkey. The mine was shut down in 2018 due to poor gold recovery rates. After conducting research and tests, Eldorado has opened up the mine and implemented a new approach called heap leaching. Using this technique, the company will save about $500 million in capital spending. Eldorado expects to produce up to 420,000 ounces of gold this year, and up to 550,000 next year. It seems Eldorado is positioned to generate serious revenue, and be a top-tier gold stock for years to come.

Investing in Gold 

With gold prices surging investors are looking to invest in top gold stocks like these. The market may be a little overheated at the moment, but it still might be an opportune time to invest in gold.

The gold market moves quickly. So, if you invest, make sure you diversify and don’t invest too heavily in one position. Our stock position size calculator can help.

Good investing,

Peter


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