Uber versus Gold…or Something Else?
Uber or gold, which do you pick? While I’m no gold bug, I wouldn’t blame you for picking the latter. Speculating on gold is probably a better option than piling into a company going bust!
Gold Stocks
Trading gold stocks isn’t for everyone.
However, if you want to take advantage of the wild gold price swings, there is a way: gold mining stocks.
These companies generally follow the up-and-down swings of the gold spot price.
The difference is, both the rise and fall is bigger.
Think of gold mining stocks as a leveraged play on the gold price.
When the gold price moves higher, so do gold mining stocks.
You can see this extreme volatility in the chart below:
Here we have the gold spot price in US dollars (orange line), and two gold mining companies, Newcrest Mining Ltd [ASX:NCM] (blue line) and Silver Lake Resources Ltd [ASX:SLR] (red line).
Compared to the gold price, both Newcrest and Silver Lake Resources have drastic price swings. When the gold price rises even slightly, both stocks jump higher.
It’s a similar story when the gold price falls, however. Both NCM and SLR have large share price falls when gold dips in the short term.
Investing in gold mining stocks is one way to take advantage of volatile gold prices.
The Latest News On Gold Stocks
If you’re keen to learn more about how to profit from gold mining companies — including gold producers and explorers — then this section on gold stocks is a must-read.
Artemis Resources Share Price Dips after Corporate and Operational Update
After releasing its Corporate and Operational Update this morning, Artemis Resources Limited [ASX: ARV] is trading a little flat. At the time of writing, Artemis Resources share price is trading at $0.057, stable after yesterdays 3.39% drop.
ASX Market Sheds $22 billion in Value as Big Four Banks Suffer
This morning, the ASX market wiped as much as $22 billion off of its value, as nervous traders shied away from global market slumps. Currently, the S&P/ASX200 index is down 1.21% or 74.9 points to 6120.30.
St Barbara Share Price Plunges on Update, FY19 Guidance
The latest news out of the company is an update centred on a feasibility study for the ‘Gwalia Mass Extraction’ project and lowered FY19 guidance at its Gwalia operation.
Dacian Gold’s Share Price Drops Before Signalling Trading Halt
Dacian’ Gold's share price has been tracking downwards since February, shedding 8.24% over the past few weeks. With a bullish gold price, many investors have been left to speculate on the cause for the decline.
Why the Kingsgate Share Price Is Up 51%
The massive gains for the Kingsgate share price come on the back news out of the company, outlining a settlement with its Political Risk Insurers to the tune of more than $82 million.
Doray Minerals Share Price Yo-yos upon Merger Update
This morning Doray Minerals gave an update on its proposed merger with Silver Lake Resources. There was talk of a potential merger back in November between the two gold miners. At the time of writing, Doray Minerals’ share price is trading slightly higher at 50 cents, up 2.04%
Vector Resources Share Price Plunges by 20% despite Reinstatement
Over the last five days the value of Vector Resources shares have been hit by a landslide, after its voluntary suspension of trading on 1 March, over quoted securities.
Today that suspension has been lifted. Despite this, Vector Resources share price is trading lower at $0.018, down 10% at the time of writing.
The Diverse Array of Gold Mining Stocks
During the recovery in stocks since Christmas, gold prices have gone even higher. This raises questions about the link between price movements in gold versus stocks in October and December. Was gold truly acting as a safe haven amid volatility elsewhere?
GWR’s Share Price up 13.64% after Exciting Drill Results
It seems investors have gained some confidence in the gold exploration company as GWR’s share price is trading 13.64% higher today, after continuing high grade drilling results.