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:

gold stocks

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.

Where Do All the LNG Dollars Go?

The massive investment into liquid natural gas (LNG) over the past decade has resulted in the development of a new export industry. It may finally start to pay off over the next few years.

This Sector Is an AVOID!

There is a good chance that the long term impact of this royal commission will be a complete dismantling of bank business models. As I pointed out yesterday, banks are already starting to put their funds management businesses up for sale. Next, the rest of the wealth management arms (including the financial planning networks) will probably go too.

Who Wants Gold with Their Trade War?

US markets bounced back overnight. There was no reason in particular. Probably just that, on consideration, the previous day’s falls might have been a little excessive. Still, the market feels a little bit like the proverbial cat on a hot tin roof. That is, edgy, nervous, and ready to jump if need be. In my view, the risk of a trade war is higher than many people think.

Gold Breakout and Bear Market in Stocks

If you want to get into an asset in a bull market instead, take a look at gold. Since bottoming in late 2015, gold has been in a bull market. It’s just that most people haven’t noticed. Early bull markets are tough to identify, in the same way that early bear markets are tough to identify.

Why the Gold Bull Market Is Set to Continue

Aussie gold stocks have outperformed strongly during the market’s recent convulsions. They are a great hedge in times of increasing economic uncertainty like we’re in now. The bull market conditions are set to continue for gold. The Aussie dollar gold price is approaching $1,750 an ounce, the highest price since mid-2016 and enough to fatten most well run gold miners’ margins.

Newcrest Mining Share Price Shows Slight Growth

Newcrest Mining Ltd [ASX:NCM] has increased slightly by 1.44%, this morning. They sit on a market cap of $15.071 billion, while trading at $19.66 a share. Newcrest mining was founded in 1966. They sell a variety of copper and gold while specialising in mining development and exploration. Why the increase? Find out...
Money Morning Australia