The Precious Metals Stocks You Could Have Bought
You could tell this move was different because silver finally broke above previous resistance earlier this month. It’s almost as if gold had been holding back waiting for its sister metal to catch up. When it did, the yellow metal took off and hit new all time highs.
Looking back on what you might have purchased in the sector could be considered a waste of time — except that a breakout move like this in globally-watched commodities sometimes signifies a big change in economic assumptions. This may go unrealized by a stock market focused heavily on Amazon AMZN and Tesla TSLA .
If some kind of change is in the cards, here are 4 precious metals stocks of interest:
Agnico Eagle Mines is New York Stock Exchange-traded with headquarters in Toronto, Ontario, Canada.
Agnico’s been mining since 1957 with operations in Canada, Finland and Mexico. According to the company’s website, “shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales.” The miner pays a dividend of 1.08%. Average daily volume is 1.56 million shares traded. The short float is less than 1%.
Barrick Gold is also listed on the New York Stock Exchange and this Canadian miner is also based in Toronto.
The company operates mining facilities world-wide. The price/earnings ratio of 12 is much lower than the p/e of the market as a whole. Barrick is paying a small dividend of .94%. The stock is heavily traded: average daily volume comes to about 17 million shares. This is another Canadian miner with a short ratio of less than 1%.
IAMGOLD IAG Corp is headquartered in Canada and trades on the New York Stock Exchange.
According to the company’s website, “IAMGOLD’s general policy is to not hedge gold production, thereby enabling investors to benefit from the upside potential.” Mining operations are world wide. The stock’s mid-March low at 1.50 remained above the 2015 and 2016 lows. Now going for 5.02, it looks ready to challenge the 2017 high of 7.
Kinross Gold is also Canadian-based with corporate offices in Toronto and operations in that country as well as the United States, Brazil, Chile and around the world generally.
This one has moved from about 3 during the 1st quarter sell-off to it current price of about 9. Nice move, but Kinross has long way to go to get back above those 2011 highs up near 17. The price/earnings ratio of 14 is about half of the S&P 500’s Schiller p/e. Shareholder equity exceeds long-term debt and the current ratio is a positive 3.6. The company does not pay a dividend.
The Forbes.com Probabilities blog has been on the precious metals beat up close this month — we looked at gold stocks way back on the 1st of July in The 7 NYSE Gold Stocks Hitting 52-Week Highs and at silver stocks last week with These 5 Silver Stocks Are Hitting New 52-Week Highs. Sometimes the equities seem to know what’s coming in the underlying commodity.
Stats courtesy of FinViz.com.
I do not hold positions in these investments. No recommendations are made one way or the other. If you’re an investor, you’d want to look much deeper into each of these situations. You can lose money trading or investing in stocks and other instruments. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor.