BTG - How Have These Gold Stocks Performed In 2020?
When it comes to gold stocks, the price of gold is a big factor. Simple economics suggests that low gold prices – just like any “product” – isn’t good for business. At some point, like we’ve seen with oil, the cost of production can be more than the actual return. But that isn’t the case right now. In fact, the price of gold is testing levels it hasn’t seen in 7 years.
Some analysts also suspect that gold prices are set to make new, historic highs in the next 12-18 months. Whether or not that actually will be the case is yet to be seen. The economic downturn has seemingly “come out of nowhere” depending on who you ask and the world’s “greatest economy” has fallen victim to the same circumstances as all other major global economies.
[Read More] Large-Cap Gold Stocks To Watch Right Now
This has resulted in a flight to safe havens. BofA forecasts this to be just the start. Amid all of this noise, we’ve seen governments and central banks race to stimulus measures. Many of us still remember the 2008 financial crisis that brought global economies to their knees. But some still suspect that this current economic downturn may just be getting started. In this light, gold stocks and, of course, the price of gold have greatly benefited this year. How have gold stocks performed? You be the judge.
Gold Stocks To Watch: B2Gold (BTG)
If you bought shares of B2Gold (BTG) at the beginning of the year, you would have been looking at a gold stock worth about $4. Fast-forward to today and that same position is likely up about 25%. But that’s only a fraction of the story. Unless you hit the snooze button on January 3rd, BTG stock has gone through its ups and downs; literally.
When the markets sold off in March, like many gold stocks B2Gold dropped off hard. Shares dipped as low as $2.16 and traded below $4 for nearly a month before popping back up. This week B2Gold stock has rocketed to fresh 52-week highs of $5.05 following Bank Of America’s report and shattered its previous record highs of $4.59 back in 2012.
Gold Stocks To Watch: Kinross Gold (KGC)
Kinross Gold (KGC) is another one of the top gold stocks this year albeit a lower-priced performer. Since the start of the year, Kinross gold stock has managed a jump from around $4.80 in January to new 52-week highs of $6.76 this week. While the March drop saw shares traded around $2.72, it took Kinross only a few weeks to break back above $5 a share.
In its latest financial update, the company demonstrated a strong financial position. It has more than $1 billion in cash and cash equivalents on the books. It is also expecting first-quarter sales of about 540k gold equivalent ounces. In light of its latest achievements, analysts from the likes of Scotiabank upgraded the rating on Kinross gold stock. It also raised its price target from $7.42CAD to $10.58CAD.
Gold Stocks To Watch: Yamana Gold (AUY)
While shares of Yamana Gold stock (AUY) haven’t made new 52-week highs (yet), they have made a strong move for April. It seems like Yamana gold stock had a harder time recovering like the previously mentioned gold companies. After dropping to lows of $2.23 and trading back as high as $3.65 thereafter, AUY stock traded mostly around $2.75-$3.
That was until the beginning of April. As shares began to climb, gold prices threw in a little more juice and since then, Yamana gold stock has managed to rebound by as much as 70% since April 1. Furthermore, when it comes to historic highs, Yamana still has some way to go. Back in 2016 the gold stock reached highs of $5.99 in July. Prior to that Yamana traded at its all-time high of $20.59 in 2012.