With Gold Prices Pulling Back, Is Now The Time To Buy Top Gold Stocks Before A Potential End Of The Year Rally?
It’s no surprise that gold stocks have been investors’ favorites as of late. 2020 has certainly been a bullish year for top gold stocks to watch. Though this week, gold prices have dropped due to President Trump’s optimistic comments on new developments surrounding a new coronavirus vaccine treatment, which has lifted the markets higher this week. President Trump announced that he authorized the emergency use of convalescent plasma to help in the fight against the coronavirus.
From what I see, the consolidation we’re seeing doesn’t look to be a drastic sell-off for gold prices; it could just be early investors taking some profit. In fact, some analysts believe that golf prices can potentially reach $3,000 levels by the end of year. Now, yes, analysts can be wrong and there’s no guarantee, but there is also a chance they can be right. With billionaire and legendary investor Warren Buffett’s Berkshire Hathaway recent acquisition of Barrick Gold (GOLD Stock Report), investors may want to follow suit and buy some of the best gold stocks in the stock market today. Let’s take a look at 2 trending gold stocks to watch before September 2020.
Top Gold Stocks To Buy [Or Avoid] Before September 2020: Newmont Gold Corporation
First on the list of top gold stocks to watch is Newmont Gold Corporation (NEM Stock Report). After the company’s most recent M&A with GoldCorp, Newmont is this largest gold miner in the market. Newmont Gold released its Q2 earnings on July 30th, and the company reported it’s attributable gold production fell 20.8% year-over-year to 1.255 Au million ounces.
The low production reported from the second quarter was because that five of it’s mining operations were placed in care and maintenance due to the global COVID19 pandemic. From our standpoint, this isn’t necessarily something that should too alarming for investors, especially now that gold prices have been hovering above the $1,900 level, we could potentially see better Q3 earnings with increasing revenue, assuming the price gold remains at this level of moves higher.
“Newmont continues to manage through the COVID pandemic from a position of strength and our diverse balanced portfolio of world-class assets provide stable production with significant reach to rising gold prices.”- Tom Palmer, CEO of Newmont Gold Corp.
Top Gold Stocks To Buy [Or Avoid] Before September 2020: Royal Gold Corp
Miners, refiners, and then the retailers usually segment the gold industry. And when people want exposure to gold, gold miners are usually what comes to mind initially. Investors with a more conservative investing approach when it comes to gold stocks may want to take a deeper look at Royal Gold (RGLD Stock Report).
Royal Gold’s business model is providing upfront capital to mining companies, and in return, it secures them the right to purchase a certain amount of gold, or other precious metals at a discounted price. This gives the company an opportunity to reap the benefits if gold prices increase, while at the same time mitigating risk by not having to take on operating the assets.
Royal Gold reported a strong fiscal year in June and has outperformed on a number of metrics. The company reported full-year revenue of $499 million, an 18% increase from the $423 million it posted in the previous financial year. They also saw a jump in earnings and cash flow.
Earnings per share were $3.03, and operating cash flow came in at $341 million. What’s even more impressive is the company has improved its balance sheet. The company reported that it has paid down $115 million in debt, which has resulted in a net cash position of $18.7 million. Being net cash positive is certainly a good thing, especially with the continued uncertainty of the global economy as we continue to battle the coronavirus pandemic.
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