The guru of investment world, Warrant Buffet sees value in Gold stocks. So, investing in gold stocks with the rising price of gold really makes sense. Let’s see the top gold stocks to watch going into the new year.
The gold stocks had a great run which ended at the beginning of August 2020. However, Gold stocks are expected to strengthen their growth in the coming year once the restraints from the pandemic are eased out.
Gold stocks are stocks of firms and funds that directly or indirectly deal in the gold business. The industry is mainly consisting of mining firms that dig up and sell gold in the market. It also includes gold streaming and royalty companies, which act as an intermediary.
Here are the 3 best gold stocks to watch for in 2021; considering the long-term growth.
Barrick Gold (GOLD)
One of the world’s most advanced and valued gold mining firms, Barrick Gold (GOLD) focuses on operating Tier One mining assets. A company with a bold vision is for sure a healthy long-term investment.
Barrick Gold works on large mines that have vast remaining resources. This provides the opportunity to benefit from the resource for many years. The company estimates to generate an average output of 5 million ounces of gold each year—for the next nine years running.
Moreover, Barrick expects its all-in sustaining costs to decrease from almost $1,000 per ounce in 2020 to as low as $800 per ounce by 2024. That’s a significant decline in cost and it will help in increasing profit margin. Thus, helping the stock price to increase.
A recent filing in August unearthed that Warren Buffett’s Berkshire Hathaway loaded up on Barrick Gold’s shares in Q2 2020.
All the prospects show that Barrick Gold has the potential to make big moves in the coming years.
Royal Gold (RGLD)
Royal Gold (RGLD), another promising stock to watch as we head into the new year. The company has a market value of $7.13 billion and has been a member of Jim Simon’s stock portfolio since Q2 of 2018.
Royal Gold accounts for 0.10% of the total portfolio percentage and is the 10th largest stock that Simons believes is a decent buy. RGLD stock has been offering its shareholders both share price gains and dividends.
Despite the pandemic, the company raised its dividend by 7% to $0.30 per share in November 2020. This marked the 19th consecutive year of a dividend increase by the company.
The shares price of Royal Gold (RGLD) has inclined up to 189% in the past five years. Moreover, following the increase in the gold price during the past few quarters, Royal Gold revenue has also grown. The Gold accounts for approximately 75% of the overall revenue of the company.
Gold Fields Ltd. (GFI)
One of the world’s largest mining firms based in Johannesburg, South Africa, Gold Fields Ltd. (GFI) is another encouraging gold stock to watch in 2021. Since March 11, 2020, shares of GFI have surged up to almost 52.3%.
Also, GFI shares have added up to 220% in the past five years.
With the U.K. preparing to move out of the European Union and Joe Biden becoming the new president of the U.S., the gold price is expected to boom in the coming days. This will be the major factor helping in increasing the revenue of Gold Fields.
The company owns nine operating mines which produce around 51.3 million ounces of gold each year. Gold Fields has its reserves and mining resources in South Africa, Australia, Chile, Peru, and Ghana. The company shows much promise with all these historical trends and potential prospects.