\"History has shown that during economic slowdowns, from the Great Depression to the COVID-19 pandemic, gold appreciates in value,\" says financial analyst James Jason of Mitrade, a commodities trading platform.
Bullion often refers to gold in bulk form, usually bars or ingots. Typically, gold bars are poured and ingots are pressed (a cheaper production method). As a result, bars command a higher premium, or added cost, over the daily spot price of gold than ingots.
Ranging in size from quarter-oz. wafer to a 430-oz. brick, bars, and ingots are stamped with purity, origin, weight, and where the bullion was minted. Not all gold is equal, especially when it comes to purity and weight. Investment-grade gold is at least 99.5% pure.
Buying shares of companies in the mining, refining, or other aspects of the gold production business is one way to play. About 300 of these companies, aka \"miners,\" are listed on major stock exchanges. Their share prices generally reflect the movement of the metal itself. However, \"the growth and return in the stock depend on the expected future earnings of the company, not just on the value of gold,\" notes the World Gold Council, an industry trade group.
More conservative investors can buy shares in gold-oriented mutual funds or exchange-traded funds (ETFs). These funds have varying investment approaches: gold-backed ETFs tend to invest directly in physical gold, while mutual funds favor gold mining stocks. Some funds invest in both. But all offer a liquid, low-cost entry into the gold market that is more diversified, and so lower-risk, than buying equities outright.
According to a report by S&P Global, the sentiments for gold investment have risen over the past few months due to higher inflation and increasing geopolitical risks surrounding the Russian invasion of Ukraine. Since early March 2022, gold price has hit a 19-month high of around $2,039/oz and has stabilized around $1,900/oz. In most major economies, inflation has reached multi-decade highs and central banks are struggling to set it to the target range of 2%-3%, further fueling the demand for the precious commodity.
In October, as inflation appeared to be peaking and the market started growth numbers again, the price of gold fell 2% to US$1,639/oz due to the rising dollar strength. Latest research shows that the global gold mining market will grow from $214.1 billion in 2021 to $249.6 billion by 2026, at a compound annual growth rate of 3.1% for the period of 2021-2026. Some of the top stocks in the gold market that elite investors are using to profit off this gold boom include Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Franco-Nevada Corporation (NYSE:FNV).
The companies that operate in the gold sector and are best positioned to offer investors some solidity amid rising recession fears were selected for the list. The business fundamentals and analyst ratings for these firms are also discussed to provide readers with some additional context for their investment choices. An extensive database of around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to quantify the hedge fund sentiment around each stock.
AngloGold Ashanti Limited (NYSE:AU) operates as a gold mining company in Africa, the Americas, and Australia. AngloGold Ashanti revealed that it is targeting a 30% reduction to its scope 1 and 2 greenhouse gas emissions by 2030. The company is committed to achieving net zero emissions by 2050 through a combination of renewable energy projects, fleet electrification and lower-emission power sources.
Just like Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Franco-Nevada Corporation (NYSE:FNV), AngloGold Ashanti Limited (NYSE:AU) is one of the best gold stocks to buy for recession according to elite investors.
B2Gold Corp. (NYSE:BTG) operates as a gold producer with three operating mines in Mali, the Philippines, and Namibia. On November 2, B2Gold Corp and AngloGold Ashanti, a limited global gold mining company, said that they will put their $925 million Gramalote gold project in Colombia up for sale before the end of the year.
On November 23, Stifel analyst Ingrid Rico maintained a Buy rating on B2Gold Corp. (NYSE:BTG) stock and lowered the price target to C$7 from C$7.25, highlighting the third-quarter results and maintaining the near-term and longer-term gold and silver price estimates.
On October 17, Barclays analyst Matthew Murphy maintained an Equal Weight rating on Royal Gold, Inc. (NASDAQ:RGLD) stock and lowered the price target to $108 from $110, noting that the gold equities are preferred over base metal equities as global growth slows.
In addition to Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Franco-Nevada Corporation (NYSE:FNV), Wheaton Precious Metals Corp. (NYSE:WPM) is one of the best gold stocks to buy for recession according to elite investors.
Gold exchange-traded funds (ETFs) are a more convenient and cost-effective means of investing in gold stocks, especially for those who lack the inclination or time to research specific gold companies. A gold ETF offers broad exposure to the sector by holding either shares of gold companies or physical gold. Because of the availability of ETFs, you don't have to be a stock-picking guru to participate in the gold industry's upside.\" It concluded: \"Given these differences, investors need to weigh the rewards against potential risks to choose the right gold stock or ETF for their situation.\"
Golden Independence Mining Corp. (CSE: IGLD.CN) (OTCQB:GIDMF) BREAKING NEWS: GOLDEN INDEPENDENCE INTERSECTS 1.89 G/T GOLD AND 6.9 G/T SILVER OVER 50 FEET AT INDEPENDENCE PROJECT - Golden Independence (the \"Company\") is pleased to announce results from the initial six drill holes of the recently completed 12 hole 7,425 foot Phase II RC drill program at the Independence project, south of Battle Mountain, Nevada. Six holes of the Phase II RC drill program targeted the main oxide gold zone and six holes targeted the intrusive gold target. Results for two holes from the main oxide zone and four holes from the intrusive gold target include:
\"The highlight results above are the first two of six holes testing the main oxide zone in the area of AGEI-32 from the Phase I RC drill program. As expected, we are seeing good long intervals in excess of 0.5 g/t gold with shorter +1 gram intervals within it: 195 feet of 0.66 g/t gold containing a shorter 50 foot interval of 1.89 g/t gold and 150 feet of 0.68 g/t gold containing a shorter 45 foot interval of 1.52 g/t gold.\" commented Golden Independence President Tim Henneberry.
On June 15, 2021, Barrick will also pay a previously declared dividend of $0.09 per share for the first quarter of 2021 to shareholders of record at the close of business on May 28, 2021. \"Our overall return to shareholders for 2021 is one of the highest in the industry and marks another milestone in our journey towards our objective of building the world's most valued gold company,\" said senior executive vice-president and chief financial officer Graham Shuttleworth.
Franco-Nevada Corporation (NYSE: FNV) (TSX: FNV) had previously acquired 14.7% of Vale's outstanding Participating Debentures (\"Royalty Debentures\") from the Brazilian Development Bank (\"BNDES\") and the Government of Brazil for $538M. The Royalty Debentures provide holders with life of mine net sales royalties on Vale's Northern and Southeastern Iron Ore Systems and on certain copper and gold operations (together, the \"Royalty\"). This transaction provides royalty exposure to some of the world's largest and most profitable integrated iron ore mines with reserve weighted mine lives of 30 years and potential for multiple additional decades through reserve growth. The Royalty covers a total of 15.6 thousand square kilometers of mineral properties held by Vale in Brazil, also offering exposure to a number of development properties. The Royalty currently generates an annualized pre-tax cash yield of 10% based on acquisition cost and the most recent semi-annual Royalty Debenture payment. The amount of production capacity subject to the Royalty is expected to grow by approximately +60% by 2026 which would imply an 8% yield on investment at that time, assuming consensus long term iron ore prices.
Hecla Mining Company (NYSE: HL) recently released its Q1 2021 exploration results. Highlights Were: Midas exploration at Green Racer Sinter intercepted high-grade gold and silver mineralization over a 1,000-foot strike length and a 1,250-foot dip extent in the Sinter Vein, as well as two new mineralized footwall structures. Significant intercepts include more than 5 oz/ton gold over 13 feet estimated true width (see Table A for full results). All are open for expansion; Midas' plan of operations amendment expands to allow greater access to multiple targets on the Green Racer Sinter and East Graben Corridor; and San Sebastian exploration drilling on the El Bronco Vein expanded mineralization over a strike length of 1,500 feet. While at the El Tigre Vein, vein textures indicate drilling was high in the epithermal system, warranting further deeper drilling.
\"Our early exploration results, just two miles from the mine portal, validates our thesis that despite its long high-grade production history, there remains significant untouched potential at Midas,\" said Phillips S. Baker, Jr., President and CEO. \"The recent high-grade intercept grading 5.52 oz/ton gold and 8.9 oz/ton silver over 20.3 feet drilled (13.1 feet estimated true width) is one of the best exploration drillholes in North America in the past year.\"
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