In the last months of 2020, gold remains stuck to a narrow range as optimism over coronavirus vaccines by Pfizer and Moderna is restoring investor and economist sentiment that further spread of the virus will be contained. This, in turn, has contributed to a more positive outlook regarding the global economy as it continues its recovery from the months of lockdown.
As gold prices continue hovering around $2,500 per ounce ($1,900 US), after hitting a record high in July, this is translating into more exploration for minerals across northwestern Ontario. This is excellent news for prospectors and explorers as they can bring money in and get people interested in their properties to move them forward.
The result of this is that exploration among junior gold miners in Ontario is on an upswing after being slowed by COVID-19 restrictions in the spring. Since last fall, there's been a fairly constant exploration flow, which has had a positive impact on mining stocks.
The expanding amount of exploration in the region is going up driven by an increase in the demand for the yellow metal. Even though there's less gold in areas of ore, it's viable.
Higher gold and silver prices have also had positive impacts on shareholders who could cash in on their holdings or enjoy the dividends of the mining stocks they hold.
Some of the best gold stocks to buy right now include Canadian junior gold miner Great Bear Resources, Wallbridge Mining, Novo Resources and Highgold Mining. These exploration and mining companies are all junior and mid tier with a heavy focus on the acquisition, exploration and development of gold projects in Canada that offer significant exploration potential. The creation of shareholder value comes from 100% ownership of lucrative projects in top mining districts in and around Ontario as well as careful allocation of capital and a thorough discovery process.
With the price of gold been climbing for more than a year, and no signs of it slowing down any time soon, now is a good time to buy gold stocks from these junior gold miners. With gold also held as a hedge against uncertainty, in the months following the U.S. election and trade wars, and amid a global pandemic, investors are increasingly turning to silver stocks and gold stocks as a way to manage the uncertainty.