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Which gold stocks look promising this year? (2021)

If you are looking for the best gold stocks, you have come to the right place! The stock market shimmers with lots of shiny choices. However, not everything that glitters is gold, so we help you choose the truly precious stocks today!

We set things in motion with our recommendations for the best gold stocks of 2021. Then we guide you through investing in this precious metal. An investor like you should know that there is more to this yellow metal than just gold stocks.

Investing in stocks and precious metals has their various benefits and peculiarities. Therefore, we will talk about how these assets work, not just our top picks. In return, you can maximize your returns, perhaps beyond what these gold stocks can generate!

The best gold stocks to buy in 2021

  1. Barrick Gold Corporation (NYSE: GOLD)
  2. Kinross Gold Corporation (NYSE: KGC)
  3. Franco-Nevada Corporation (NYSE: FNV)

# 1. Barrick Gold Corporation (NYSE: GOLD)

This is a Canada based gold mining company with many locations around the world. These include countries such as Saudi Arabia, Zambia and the Dominican Republic.

Barrick focuses on operating large mines. This enabled the company to produce gold at a steady pace for years. Its annual gold production until 2030 can reach about five million ounces.

In addition, the company expects that its maintenance costs will decrease in the coming years. This can range from $ 1,000 per. Ounce to around $ 800 by 2025.

Barrick should continue to make more money, even if gold prices fall slightly. In addition, it has a strong balance along with a high quality gold mining portfolio.

The company repaid its debt over the past few years. In return, Barrick has pulled down its interest costs. With its increasing financial strength and flexibility, it lets Barrick pay more dividends.

It yielded benefits in first quarter on June 15, 2021. Each share paid $ 0.09. Barrick investors get the same amount in second quarter on September 15, 2021.

On August 23, 2021, the share price of Barrick (GOLD) is $ 20.15. Its earlier closure was at $ 19.23 on August 20, 2021.

# 2. Kinross Gold Corporation (NYSE: KGC)

This is another of the companies based in Canada. Like Barrick, Kinross also has several gold mines around the world. Examples include America, West Africa and Russia.

Kinross produced over 2.4 million ounces of gold by 2020. In return, the company was successful in reducing the effects of the pandemic.

In the first quarter of 2021, Kinross Corporation earned $ 192.8 million. This was a growth in net income of 15% compared to the previous year. It also produced 558,777 ounces of gold.

In addition, Kinross reported revenue growth of 11% from the first quarter of 2020. It amounted to $ 986.5 million. However, this is not the only good news for gold investors.

Financial service company Credit Suisse rated KGC for stock yield. In other words, it sees Kinross beat the overall market in the future!

It also raised the price target for Kinross Corporation. Credit Suisse raised it from $ 7.50 to $ 8.00. This is in line with the “outperform” rating they gave.

At the time of writing is The price of the Kinross (KGC) stock was $ 5.93. Its previous closure was at $ 5.71. In addition, it reported a dividend of $ 0.03 pr. Stock for the second quarter of 2021.

# 3. Franco-Nevada Corporation (NYSE: FNV)

This is also based in Canada. Unlike the other two, Franco-Nevada is a royalty and streaming company. So what exactly does it do?

It provides loans to mining companies. In return, the company receives a portion of the revenue from gold mines. This amount is called a royalty, which often ranges from 1% to 3%.

This gives it some advantages over gold mine divisions. Like any investor, it diversifies. If one company fails, others can still deliver a cash flow.

In addition, a streaming and royalty company can buy the yellow metal at low prices. This means that the company can still make a profit despite falling gold prices.

Franco-Nevada Corporation is a good example. It grew 47% year-over-year to $ 160 million. It also earned $ 190 million on the sale of 107,500 ounces of gold.

At the time of writing, the FNV share price was $ 145.55. This was an increase from $ 141.43 on August 20, 2021. What’s more, investors can expect one $ 0.30 dividend per. Share in 2nd quarter 2021!

What is the difference between gold stocks and the real thing?

What is the difference between gold stocks and the real thing?

We mentioned that we would talk more about these two assets. Their purpose is different from each other. Understand them so you can choose the one that best suits your portfolio.

Gold is one of the oldest investment opportunities. Most people use it to hedge against inflation. This is because the value of gold usually does not shift despite rising prices for other commodities.

It’s great if you want to protect your finances. If you want to make money, gold is not the best choice. Although gold prices will hardly fall, they will not rise that much either.

The opposite is true for gold stocks. You invest in companies that can increase their profits. In return, their stock prices are likely to rise.

It can often beat the precious metal during a bull market! Gold mining stocks are likely to receive a windfall soon. Central banks are buying more gold than ever before.

They are not even bothered by the current gold price. As a result, the yellow metal will become more valuable in the future. That means more profits gold mining companies and investors!

How do I choose the best gold mine divisions?

How do I choose the best gold mine divisions?

The market has many more gold stocks than our recommendations. Of course you can find one that we did not discuss. For example, there is Sibanye Stillwater Limited mining company.

However, what do you think of these promising stocks? Let’s look at how the gold mining companies are working again. We have already found that there is a great demand for them.

However, many things can disrupt their operation. The best mining companies can minimize these factors. Let’s take a closer look at some of them:

  • Production costs – it takes money to make money. Gold mining companies spend huge capital on gold miners, their equipment and other costs. If you remember, we mentioned how Barrick reduced his costs. That’s why we placed it at number one on our list!
  • Gold price – Mines make a profit on the demand for gold. This can be a red-hot signal to buy precious metals! If prices rise, it can deter people from buying. Fortunately, central banks continue to buy gold right now, regardless of price.
  • Company performance – if the company performs poorly, the share price may rise. You put your trust in a company when you invest in its shares. You should choose companies that are likely to operate consistently.

Our top choices protect against these risks. Again, you might find better listed companies. See if they meet our criteria. If they do, you may have beaten gold!

What are other ways to invest in gold and other assets?

What are other ways to invest in gold and other assets?

The gold industry offers various investment opportunities. It is not limited to just bars and stocks. You need to learn more about them so that you can maximize the return from gold. Here is the list:

  • Bullion – You may be thinking of the shiny columns you see in bank vaults. Contrary to many people’s beliefs, bullion has other forms. They only need to meet the minimum weight and purity requirements.
  • Coins – Coins are much easier to store than bulky yellow rods. Note, however gold coins can cost more.
  • Jewelry -If you are a first time investor, you may want to steer clear. You should be able to find out the authenticity and quality of a gold piece of jewelry. If you can not, you will probably be cheated by dealers.
  • Exchange traded funds – ETFs are one type index fund. It is an asset that invests in multiple stocks. As the name suggests, you can trade it as a stock.
  • Mutual funds – Like ETFs, it invests in other assets. However, they are trying to beat market indices like the S&P 500. They do this by investing in bonds, stocks and other assets.

The yellow metal is not the only asset that glitters. You can choose from so many other alternatives. Let us examine each one below:

  • Bonds – You can consider it a “glorified IOU.” You borrow money from a company or the state. In the end, they pay you back. They are known as safe investments and sources of fixed income.
  • Property – Real estate is still a good investment nowadays. You needed a lot of money to invest back then. Now, crowdfunding of real estate lets you do it for only $ 500!
  • Cryptocurrency – Here is the hottest investment opportunity of the year! These are digital currencies that run on decentralized networks called blockchains. They probably do replace gold and even the US dollar!

Final thoughts

Now that you know how gold and its stocks work, you can now plan your investments. Examine your assets thoroughly. Never spend the money you can not afford to lose!

Were you surprised to know that cryptocurrency may soon replace gold? Then maybe it’s time to invest in it too! Like any asset, start with research.

The asset of the future is not metal, and it is digital! You might find quality crypto articles from Inquirer USA. These will explain how cryptocurrencies are changing the world.

Learn more about gold stocks

What are gold stocks?

These represent to own a part of companies dealing with this precious metal. Examples include gold mining companies and royalty companies. You can buy them when their prices are low and then sell them at a higher price. In addition, they can pay dividends and serve as a source of passive income.

What are the best gold stocks?

Here are our picks for the best gold stocks:

  1. Barrick Gold Corporation (NYSE: GOLD)
  2. Kinross Gold Corporation (NYSE: KGC)
  3. Franco-Nevada Corporation (NYSE: FNV)

We chose these because of their commitment to sustainability. This ensures that they operate consistently and are able to service the growing demand for gold worldwide. Although you should base your choices on your investment goals and research opportunities yourself.

Why do they differ from physical gold?

You can earn a lot on gold stocks as more people and governments buy more yellow metal. Eventually, these investments can grow in value significantly. On the other hand, gold is known as an effective hedge against inflation. This is because the yellow metal tends to retain its value despite market conditions.

Disclaimer: This article is the author’s personal opinion, which may differ from the “official” statements or facts.
The opinions of all authors are their own and in no way constitute any financial advice. Nothing published by Inquirer.net constitutes an investment recommendation, nor should any data or content published by Inquirer.net be relied upon for investment activities.

Usa.Headline 4 Ever.net strongly recommends that you conduct your own independent research and / or speech
with a qualified investment specialist before making financial decisions.

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