In the last year, gold stocks have experienced a huge price increase. This was mainly caused by the pandemic. When the economy was performing negatively, investors put their money into metals like gold and silver instead. This caused gold prices to reach a new record high in mid-2020 at more than $2,000 per ounce.
When 2021 started, all mining stocks had an uptick in price. This was short-lived, and gold would go on to remain stagnant for a while. For a few months, gold stocks did not move too much as the price of gold could not go above $1,800 per ounce. Now in May 2021, the metal has finally surpassed $1,800 per ounce once again, adding a bullish sentiment to gold.
The pandemic still has an impact on gold prices at the moment. Reopening in the United States could potentially cause retail sales of the metal to increase. The U.S. has reopened in big numbers as COVID cases have dropped and vaccines have increased. About 46% of Americans have received at least the first dose of the COVID-19 vaccine.
The problem is, many other countries are struggling. Take India for example. Right now the country is reporting a massive 400,000 new COVID cases every day, and vaccine distribution is not even a thing there. Until the world economy recovers, it can make it harder for the price of gold itself to go up in the market. The yellow metal is still holding strong though, not yet dropping below the $1,800 per ounce price point. With all of this in mind, which gold stocks will you place on your watchlist this month?Top Gold Stocks To Watch
- Kinross Gold Corporation (NYSE: KGC)
- Agnico Eagle Mines Limited (NYSE: AEM)
- Royal Gold Inc. (NASDAQ: RGLD)
In the last month, Kinross Gold Corporation has seen a lot of momentum. Kinross Gold is a mining corporation that explores for land, acquires land, and develops gold reserves at its properties. The company operates out of the United States, Canada, Russia, and more. It extracts and processes gold ores, then produces and sells the precious minerals. The company has 24.3 million ounces and 55.7 million ounces of proven and probable gold and silver respectively as of December 31st, 2020.
Just two days ago, Kinross reported its first-quarter results for 2020. The first positive announcement the company made is that it is on track to meet its annual guidance. Its gold equivalent production was 558,777 ounces, and its goal for the year is 2.4 million.
The CEO and President of Kinross J. Paul Rollinson said, “Our diversified portfolio of mines performed well to start the year, as we continued to mitigate the impacts of COVID-19 across all our operations and projects. The Company delivered a 51% year-over-year increase in adjusted net earnings, with margins increasing 25% to $1,031 per ounce sold, once again outpacing the increase in the average realized gold price.” With this positive report placing bullish attention on Kinross Gold Company, will it make your list of gold stocks to watch?Agnico Eagle Mines Limited (NYSE: AEM)
If we’re looking at gold stocks that have gained traction in the last month, you can’t fail to mention Agnico Eagle Mines Limited. But what does this company do? Agnico Eagle Mines is an exploration, development, and production-based mineral property owner. It operates properties in Canada, Mexico, and Finland. Agnico will produce and sell gold deposits, as well as silver, zinc, and copper deposits. Its primary asset is the LaRonde mine in Canada.
In a recent first quarter report, the company announced that its revenue grew 39% year over year from $671.88 million to $934.39 million. In the first quarter of 2020, it had a net loss of $21.6 million in income. This year it had net income of $136.1 million. This is a huge jump over last year’s numbers.
The CEO of Agnico Eagle, Sean Boyd said, “Building on the back of strong operating results in the second half of 2020, we are reporting our second consecutive quarter of record production, with strong operational and safety performance at all of our key mines and better than forecasted costs.” Will Agnico Eagle make it on to your gold stock watchlist?Royal Gold Inc. (NASDAQ: RGLD)
This next gold stock, Royal Gold Inc., is among the higher priced echelon of this sector. So what does the company do to have such a high stock price? Royal Gold is a royalty-based gold company. It acquires and manages various royalties, metal streams, and other related assets. The resources it searches for are gold, silver, copper, zinc, nickel, lead, and cobalt. Royal Gold has more than 187 properties on 5 continents. Included in this is interest on 41 producing mines and 16 developmental stage projects.
As you may know, it is earnings season right now. On May 5th, Royal Gold joined the party with its third quarter fiscal 2021 financial results. Its revenue grew 5% year over year, and its 68% of its revenue was from gold.
President and CEO Bill Heissenbuttel said, “Revenue, cash flow and earnings were strong, reflecting the current robust gold, silver and copper price environment, which allowed us to continue to fund our investments, repay debt and pay dividends with internally generated funds.” In the last month, RGLD stock has gone up more than 7%. With that in mind, is RGLD stock one for your list?The Market For Gold Stocks
There are many types of gold stocks you can invest in. There are companies from penny stocks all the way to above the $100 per share mark. That is where you need to decide which gold stocks work best for you. If you want to invest in riskier assets with a higher chance of profit, gold penny stocks may be what you are looking for. If you want to safely invest in a company long term, look into a “regular” priced gold stock that has a lot in its pipeline for the future. If you have the money, then you could invest in one of the higher-priced gold stocks. With this in mind, which companies will end up on your watchlist?