The price of many gold stocks has skyrocketed in 2020. The pandemic and economy caused the yellow metal to reach new record highs never seen before. Supply, demand, and things that affect the economy are the most prominent things that will change the price of gold stocks. One other thing that has affected the price of gold recently are jobless reports. The US Labor Department recently released new jobless reports that were better than expected. While other news got in the way of this having a large impact, usually this is something that affects the price of mining stocks.
So what is that news affecting gold stocks you may ask? Well, President Trump stated that the $900 trillion stimulus bill that was passed through Congress had an issue. The issue is that the stimulus check amount is at $600 while Trump wants it to be more at $2000. This caused the price of gold to go up on the day of December 23rd. Gold prices will go up when there is more stimulus because it hurts the economy. Some investors believe that the market for gold stocks is not right to invest in due to its volatility. But this could not be further from the truth. As long as you put in the time to learn about companies and proper methodologies for investing, it is a great time to be a gold investor. There are actually many great gold stocks to watch in the market. Let’s take a look at four of these assets that are pulling ahead.Gold Stocks To Watch Before 2021: Barrick Gold Corporation
The first gold stock to watch is Barrick Gold Corporation (GOLD Stock Report). Barrick Gold is a mining company that will develop mines, explore them, and then produce and sell precious metals. Its main resources mined for are gold and copper. Barrick actively has interest in mines located in Argentina, Canada, Dominican Republic, and many more. Let’s take a look at what Barrick’s recent history looks like.
Back in November, Barrick announced that itself and AngloGold Ashanti Limited completed the sale of its interest in the Morila Gold Limited. Morila owns 80% of the Morila gold mine located in Mali. The companies have sold their interest to Firefinch Limited for $28.8 million in cash. The state of Mali continues to hold the last 20% of interest in the property. In doing so, all Morila employees have been re-employed by Firefinch. Barrick recently released positive financial results as well, and is positioned to reach its annual production guidance. GOLD stock price has gone up to $22.82 a share as a result of this.Gold Stocks To Watch Before 2021: AngloGold Ashanti Limited
The next gold stock to watch is AngloGold Ashanti Limited (AU Stock Report). AngloGold Ashanti Limited is a mining company that operates out of Johannesburg, South Africa. The company operates a total 14 mines and three projects spread out over 9 countries. These countries include the Americas, South Africa, Continental Africa, and Australia. Let’s dive into what this mining company has been up to recently.
Just like mentioned above, the company sold its stake in Morila Gold Limited for $28.8 million in cash with Barrick Gold. AngloGold Ashanti Limited has had to deal with plenty of struggle as a result of the pandemic. But now, AU stock price has recovered in full. As of December 24th 2020 before the open, AU stock price is at $22.85 a share on average. What will be really telling for the company is when its next financial results come out. Earnings may be a bit away, but who knows if we could hear a new operational update from the company in the meantime.Gold Stocks To Watch Before 2021: Royal Gold Inc.
Now let’s talk about Royal Gold Inc. (RGLD Stock Report). Royal Gold is a mining company with a focus on acquiring and managing precious metal streams, royalties, and other assets. It’s main focus is the acquisition of stream and royalty interests. It also will finance projects in production or development stages. The minerals its searches for are gold, silver, copper, zinc, lead, and nickel. The company actively owns 187 properties on 5 continents. This includes 41 producing mines and 16 development stage projects. Most of its property is in the United States, Canada, Chile, Australia, Mexico, and many more.
On November 17th, the company announced that its common stock dividend increased for the 20th year in a row. This number increased to $1.20 per share from $1.12 per share. This is payable on January 22nd, 2021 to shareholders of record at the close on January 8th. Bill Heissenbuttel, the CEO of the company said, “Royal Gold considers returning capital to shareholders through a growing and sustainable dividend to be a core component of our capital allocation strategy.” RGLD stock price is at $108 a share as of December 24th.Gold Stocks To Watch Before 2021: Alamos Gold Inc.
The final gold stock to watch is Alamos Gold Inc. (AGI Stock Report). Alamos Gold is a mining company that has its operations in North America. The company will acquire land, explore it, develop it, and extract gold from it. Alamos looks for other precious metals like silver as well. Its main project is the Young-Davidson mine that includes contiguous mineral leases and claims totaling 11,000 acres in Canada.
On December 16th it was announced that its Island Gold Mine has continued its track record for creating value for stakeholders. Alamos recently spent $684 million CAD to expand the operations at the mine including a new shaft that will be completed in 2025. The expansion will double the mine life, making it operate until 2035. The President and CEO of the company John A. McCluskey said, “Our next phase of growth at Island Gold will result in new jobs and opportunities in the region, create a lasting legacy that benefits all Alamos stakeholders, and reflect our core values of safety, teamwork, environmental sustainability, commitment and integrity.” AGI stock price was under $6 when 2020 started. Now AGI stock has reached $8.82 a share as of December 24th.