Firmer gold prices send futures up

By Staff Writer / November 08, 2021 / Article Link

As the market continues to recover from the pandemic, gold prices showed sings for optimist as they reached  $1770.1; which is a +0.65% GOL. Gold prices were boosted by concerns of an economic hit from soaring energy prices and a slight retreat in the dollar, as investors braced for U.S. inflation data. 

At the same time, Canadian gold stocks remain undervalued, leaving plenty of opportunities for investors who want exposure to the precious metal.

There have been many profitable gold stocks in 2021 particularly among Canadian junior gold miners and mid-tier miners. This is because, as a result of the pandemic and the economy’s collapse, gold hit a new all-time high last year.

While most gold stocks rise and fall in sync with the metal’s price, those that offer dividends offer an additional incentive for investment. That is why, while investing in these mining equities, provides an excellent mix of long-term gold exposure as well as providing investors passive income.

This week, the best gold stocks include New Gold Inc. ( NYSE: NGD ) Eldorado Gold Corporation ( NYSE: EGO ) Gold Fields Limited ( NYSE: GFI ) New Gold Inc. (NYSE: NGD).

New Gold Inc. was up 10.83% on October 13 th . Its Rainy River gold-silver mine in Ontario, Canada, and the New Afton gold-copper mine in British Columbia, Canada, are 100% owned by the corporation. Plans for 2021 highlight between 405,000 and 450,000 ounces of consolidated gold equivalent at its Rainy River mine, up from 440,000-490,000 ounces before. The company’s volume is also much higher than its average in the market at the moment, leaving investors with a positive outlook as well. 

Eldorado Gold Corporation (NYSE: EGO) Eldorado Gold Corporation is a mineral resource exploration, discovery, acquisition, development, production, and sale firm. Its mines are located in Turkey, Canada, and Greece. On October 12 th , the company released its third-quarter 2021 preliminary production results. Its gold production was reported at 125,459 ounces, which was an 8% increase quarter over quarter. As experts await its financial and operational results to be released later this month, this may be a good time to buy this mining stock.

Gold Fields Limited (NYSE: GFI) Gold Fields Limited operates 9 mines across Chile, South Africa, Australia, Ghana, and Peru that produce 2.2 million ounces of gold equivalent per year. Furthermore, the company possesses 51.3 million ounces of gold mineral reserves and 115.7 million ounces of mineral resources. The company’s profit attributable to owners of the parent was $387 million. Earlier this month, this gold stock went up 3.31% in the market.

With inflation fears rampant in the market right now, mining stocks seem like a safe haven. As hopes for an end to the pandemic remain high, many economies are bracing for a new lockdown. This creates new fears about a potential market dip. Considering everything that has been said so far, mining stocks of companies that explore and produce different precious and semi-precious metals are positioned well to withstand the possible crisis.

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