Gold’s New 2020 High Could Signal That Records Are Made To Be Broken
Gold prices are doing something we haven’t seen them do in 9 years. That’s right, we’re talking about breaching the $1,900 level and possibly setting new all-time highs. But consider exactly what we’re looking at. The highest intraday price for gold was set back in 2011 at $1,923.70(9/6/2011). However, the highest closing price ever set was $1,900.40 (8/22/2011). That was also in 2011.
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The action in the gold market has been unavoidable as precious metals prices are surging in July. Some investors have waited for nearly a decade for such an event. But as the price of gold continues to surge, will it actually manage to make history? That’s the biggest question right now and the analyst community has grown bullish on bullion.
According to StoneX analyst Rhona O’Connell, “After the febrile markets of the first quarter, conditions have been much calmer in the second quarter and gold has built a steady and gradual bull run and laying the foundations for further gains. As we enter July, the 2012 high has been taken out and provided the final impetus for a clearance of $1,800; $1,900 is certainly in sight before the end of the year, if not higher.”
Both professional and retail [sectors] have been very active … Continued uncertainty over the world’s health and the outlook for economic activity and financial risk, coupled with rising geopolitical tensions saw ETF investment in the first half-year of 734t, split as to 458t in North America, 238t in Europe and 38t elsewhere.
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It’s always an interesting situation we get in when any investment reaches a new or near all-time high. Is it set to go higher or is this the top? Should I wait a little for an organic sell-off or should I buy now? These are all questions I’m sure that go through investors’ heads at times like this. But don’t forget that looking after your fundamentals is just as important as understanding analyst opinions.
Top Gold Stocks: Wheaton Precious Metals Hits Record High
While gold and silver prices are nearing record levels, so are silver and gold stocks. Wheaton Precious Metals (WPM Stock Report) recently hit a new milestone in the stock market this week. Shares hit a high of $52.64 on July 22nd. This now marks the highest that the gold streaming stock has ever traded at. What’s more, is that this has been the case for the last few sessions. Prior to this, WPM stock’s all-time highs had been just under $50.
Wheaton is a precious metals streaming company. Its business model offers investors commodity price leverage and exploration upside but with a much lower risk profile than a traditional mining company. Wheaton delivers amongst the highest cash operating margins in the mining industry, allowing it to pay a competitive dividend and continue to grow through accretive acquisitions.
Top Gold Stocks: B2Gold Stock Price Surges In 2020
Similarly, B2Gold Corp. (BTG Stock Report) saw its share price reach new all-time highs. On Wednesday, the gold company hit a high of $6.79 during the regular session. What’s more is that during the premarket hours, B2Gold stock hit a high of $6.84. Of course, this comes as silver and gold prices are surging. What’s more, is that the company has also been making progress in its mines across the globe.
Most recently, B2Gold announced a contribution of $2 million to assist the Namibian government’s COVID-19 relief program. This represents one of the largest private sector contributions to the government’s relief fund. All dollar figures are in United States dollars unless otherwise indicated.
Top Gold Stocks: Yamana Gold Approaches 6-Year Highs
Though it didn’t make a new all-time high, Yamana Gold (AUY Stock Report) has tested levels not seen since 2014. This week the gold stock reached a high of $6.06, something it hadn’t seen since October of 2014.
That also set a new 52-week high in the interim. In an interview with Reuters, Executive Chairman Peter Marrone said Yaman is planning to raise dividends. This is from the current payout of $60 to $65 per ounce, which would “imply that we have room for upside.”
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At the end of Q2, Yamana Gold has more than $320 million in cash, while its net debt decreased by $100 million to less than $769 million, according to a news release. The company also said it expects to have its shares listed on the main market of the London Stock Exchange in the next few months.
Yamana is scheduled to announce Q2 earnings results today, after market close.
Top Gold Stocks: Agnico Eagle Mines Continues Shining In 2020
Similar to Yamana Gold stock, Agnico Eagle Mines (AEM Stock Report) didn’t make new all-time highs. However, it did set a new 52-week high. For it to break records, it still has quite a way to go as the current record sits just under $89. Needless to say, the epic climb that AEM stock saw this year didn’t go unnoticed. Back in March, the gold stock traded as low as $31. Considering it’s back above $70 this week says a lot about the demand for gold and gold stocks in my opinion.
Analysts have also taken notice of Agnico. Earlier this week, Barclays weighed in on its view of the company. The firm raised its price target to $71. However, it maintained an Overweight rating on the company for the time being. Additionally, Scotiabank also boosted its price target on Agnico Eagle stock. Previously, the firm had a $62 target. It boosted that figure to $65 this week. Prior to these two target increases, Raymond James maintained an Outperform rating on AEM and increased its $65 target to $76 last week.
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