Gold Stocks Take Center Stage Amid Continued Coronavirus Concerns
One of the most remarkable things about the past year or so has been a consistent rally in gold stocks. Much of it has been brought about by uncertainty in the markets. While the trade war between the United States and China drove the rally last year, the major trigger behind the latest rally is the outbreak of the coronavirus in Wuhan, China, last week.
That has continued to persist this week as well. Shares of many gold stocks to watch hit fresh historic highs on Monday. Several of these stocks and ETFs hadn’t traded at those levels in nearly 7 years. Beyond this short-term virus scare, there are several longer-term topics to note.
First, this is a U.S. election year. As we grow closer to November, the markets could begin to see even more volatility. This is due to the fact that there’s uncertainty in who will be the next President. Changes in things like fiscal policy and corporate oversight can dramatically sway investors in favor of or against candidates. In addition, we still have yet to see a formal end to the trade war among other things.
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Hence, there has been turmoil in the markets fearing flight of capital from China. In such a situation, it is worthwhile taking a look at some gold stocks.
Gold Stocks To Watch This Week #1 Centerra Gold
The first gold stock that could be considered by investors at this point is that of Centerra Gold (CG – Free Report). It made a positive announcement last Friday. The company reported that it had been granted the necessary permits to restart its pit mining operation at Kumtor in the Kyrgyz Republic.
The mining approvals have been granted for 2020, and it goes without saying that it is a significant development for Centerra. The company had projected that in 2019, its production was going to be 720,000 ounces of gold, out of which 575,000 ounces to 590,000 ounces are going to be contributed by Kumtor. Though it hasn’t hit new 52-week highs, shares of Centerra have maintained trading levels significantly higher in comparison to the same time last year.
Gold Stocks To Watch This Week: IMC International Mining
One of the more popular gold stocks discussed recently has been IMC International Mining (IMCX – Free Report). Shares of the company have seen a great month so far. In fact, since January 8, IMCX has managed to rally as much as 60%. So what has helped drive this momentum?
First, the excitement surrounding junior gold stocks hasn’t hurt things at all. Actually, during times of positive momentum in gold, the juniors have shown to perform much better than their larger cohorts. Next, attention has been placed on the company’s Bullard Pass property. During a time when miners are searching for new or untapped resources, IMC has 100% ownership in a property that has been said to have optimal conditions for gold discovery.
Finally, the company has also pointed out that it looks to expand. IMC has specifically noted that it will look to continue to investigate other opportunities worldwide. The company’s management has been part of the grassroots build of companies that have become large players in the industry. For example, IMC CEO Brian Thurston played an important role in the initial exploration, land acquisition and development of Aurelian Resources’ Ecuador project. Kinross acquired Aurelian Resources in 2008 in a $1.2B friendly deal.
Gold Stocks To Watch This Week #2 Barrick Gold
Barrick Gold Corp (GOLD – Free Report) has been another top-performing in the gold mining industry. Though it is far from a “junior mining stock,” Barrick Gold stock has managed to climb to highs of $19.17 this month already. In comparison to the same time last year, the gold stock is up by more than 50%. The company announced on Friday that it reached an agreement by way of which its extended tax dispute in Tanzania is going to be settled.
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Barrick has proved the local government with stakes in three of the mines that it operates in the country. Barrick is expected to pay $300 million to settle the tax dispute with the Tanzanian government. The ending of a major dispute could be a major positive for the Barrick stock. Furthermore, the company could be set to ship some $280 million worth of gold from Tanzania following the lift of this ban.
“The shipments will start immediately and, as we speak, we are mobilizing the concentrates,” CEO Mark Bristow said in an interview with Reuters.
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