The rally in gold began back in 2019 due to the uncertainties caused by the trade war between the United States and China. More and more investors turned to safer havens like gold, which resulted in the rally. However, the rally in gold has restarted in 2020 due to the tensions that erupted between the United States and Iran over the past few days.
After Iran attacked U.S. forces in the Middle East, gold rallied significantly and went past the price of $1,600 an ounce. Though these prices have pulled back a bit to just over $1,550, that hasn’t dampened excitement around gold. In such a situation, it is necessary for an investor to consider putting together a list of gold stocks. Here is a look at two of those.
Sibanye Gold Limited
One of the gold stocks that could be considered is that of Sibanye Gold Limited (SBGL – Free Report). It is one of the bigger gold mining companies, with interests in both the United States and South Africa. In addition to that, it is also important to point out that Sibanye is one of those few companies that have exposure not only to gold but also platinum, rhodium, and palladium.
In 2019, Sibanye stock emerged as one of the best performers among metal stocks. In fact, it soared by as much as 263% from Jan. 2 2019 to Jan. 6 of this year. In the current situation, this could be a stock to watch. This is especially true given the fact that the US and China still have yet to finalize future “Phase” resolutions of the current trade war.
Despite a tough start to 2020, the other gold stock that deserves attention is Coeur Mining Inc (CDE – Free Report). It had a bit of a rough time this week but the last two sessions have seen a turnaround for the stock. Recently, CDE suffered due to two sell-side downgrades from two separate companies. Roth Capital put a sell rating from neutral and set its target price at $5.25.
On the other hand, B. Riley FBR put a neutral rating from buy and slashed the target price from $7.10 to $6.30. However, due to the current rally in gold, the stock has bounced back a bit. Whether or not this trend can continue into the new week is yet to be seen by investors. However, as gold futures continue to point higher, it’s likely that Coeur could remain on a number of gold stock watch lists for now.
Star Diamond Corporation
One of the top-performing gold stocks of the last 45 days has been Star Diamond Corporation (DIAM – Free Report) (SHGDF). After a relatively flat year for most of 2019, the stock became explosive in mid-November. The initial spark came after the company reported that Rio Tinto Exploration Canada gave notice advising Star that Rio requested to exercise all of its options under the current Option to Joint Venture Agreement that was entered into back in 2017.
The company recently completed a $5.1 million private placement at $0.28 per flow-through common share. After this, shares pushed even higher. Since the initial November announcement through the first 10 days of 2020, Star Diamond shares have climbed more than 150%.
Finally, B2Gold (BTG) (BTO – Free Report)continued to hold its place on the list of gold stocks to watch this week. The company has seen a rally in shares ever since late May of 2019. This week, shares of BTG stock came close to setting new 52-week highs. This gold stock set that mark a few weeks back after hitting $4.07 just before the end of the year.
Needless to say, thanks to rising gold prices and company performance milestones, B2Gold has performed well in the eyes of investors. This week saw analysts respond to the latest performance of the company. TD Securities, for example, raised B2Gold to “Action List Buy”. It also increased its price target from C$7.50 to C$8.00.
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