Are These On Your List Of Gold Stocks?
What is the current price of gold? If you’re looking at the current gold futures market, gold prices continue to hold above $1,700/ounce. With the Federal Reserve and other global central banks in the spotlight this week, investors are watching to see the next fiscal move.
Will there be another stimulus package put together for the millions out of work right now? We saw another round of money printed for small businesses already but how will that translate to the average Joe? All good questions but no firm answers yet. It’s this type of uncertainty that has pushed attention to gold and gold stocks in May 2020.
Are Hedge Funds Indicating A Bigger Problem For The Economy?
If you look at stats from InsiderMonkey, the flow of hedge fund dollars has continued to pour into gold stocks. “At Q4’s end, a total of 51 of the hedge funds tracked by Insider Monkey were long this stock, a change of 6% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes substantially.”
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Chiron Investment Management initiated a $22.2 million position during the quarter. Additionally, Michael Gelband’s ExodusPoint Capital, Matthew Tewksbury’s Stevens Capital Management, and Robert Vincent McHugh’s Jade Capital Advisors all joined the party. But this hasn’t been a trend unique to Barrick gold stock.
More Gold Stocks Gain Ground In 2020
If you look at others like Newmont gold stock (NEM Stock Report) and Kinross gold stock (KGC Stock Report), investors have flocked to these gold mining stocks. “Newmont is incredibly well positioned,” says Tom Palmer, who became chief executive of Newmont in October 2019. The company said it “can maintain its industry-leading annual gold production of more than 6 million ounces through the current decade.”
Then you have junior gold stocks like IMC International Mining (IMIMF Stock Report) (CSE:IMCX). The exploration company has been gaining ground after inking a new acquisition for property in Northern British Columbia. Following the acquisition, current Chairman Greg Hawkins and CEO Brian Thurston explained they wanted to get the ball rolling on exploration. IMC International brought on CME Consultants to begin its geochemical program. About a week later IMC announced that rock and soil samples were sent off for lab testing.
[Big News 5-6-2020] IMC International Mining Corp. Announces Analytical Geochemical Program Update
Right now the mining industry is red-hot with strategic deals. In the same area as the company’s Cathedral property, another property in the region, Mt. Milligan is now part of a huge deal with leading streaming company, Royal Gold (RGLD Stock Report). Between Royal Gold and Centerra, which owns the Mt Milligan property, the companies have established a sizable deal.
Rider: It is noted that the results of nearby or adjacent properties are not necessarily indicative of the potential of the Cathedral property and should not be understood or interpreted to mean that similar results will be obtained from the Cathedral property.
What’s Coming Next For Gold Stocks?
Analysts’ stance on gold has grown more bullish as the government continues to print money. Bank of America (BAC Stock Report), for instance, has a bullish view on gold. The bank expects the price of gold to hit the $3,000 per ounce within the next 18 months. This is according to the bank’s latest report titled “The Fed can’t print gold.”
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“As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure,” analysts including Michael Widmer and Francisco Blanch said in the report. “Investors will aim for gold.”
BofA expects bullion to average $1,695 an ounce this year and $2,063 in 2021. The record of $1,921.17 was set in September 2011. “But beyond traditional gold supply and demand fundamentals, financial repression is back on an extraordinary scale,” the report said. So during the interim trend, gold prices may likely see more volatility considering what broader sector stocks have experienced.
An optimistic stance from the U.S. government may have added more confusion than anything right now. While some states move ahead with economic opening phases, others have yet to experience a “flattening curve”. Where do you think gold prices will be by June 1? Leave us a comment with your prediction.
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