NEM - Is Barrick Gold Stock Price Outpacing The Precious Metal?
Barrick Gold Stock Price Has Climbed 115% Since March
There’s no doubt that 2020 has been the year of gold and gold stocks. Since the start of the new decade, the price of gold has climbed from $1,521 to highs of $1,788.80. This continued the run that began in 2019 where gold prices rallied from under $1,300 to over $1,550. While this two-year love-affair with gold had its high points, it also had its low points.
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Enter March 2020. This is when we not only saw the market pullback but gold stocks & the price of gold followed suit. On March 16, a number of gold stocks dropped. The price of gold erased all of its gain from November 2019 and big questions arose. But then we see the U.S. government and Federal Reserve begin to implement stimulus policies, more uncertainty grew surrounding oil, and gold began its climb once again. Since mid-March gold prices have jumped by 23%.
By all intents and purposes, that is nothing to laugh at. A 23% return within less than 60 days is more than some people see a return of all year long. But were there better options? The short answer is yes. As the price of gold rose 23% during that time, a number of gold stocks jumped by 100% or more.
Barrick Gold Stock Price Soars In 2020
When it comes to some of the top gold stocks, Barrick (GOLD Stock Report) can’t be left out of the conversation. One of the world’s largest gold miners has had a banner year. Shares of Barrick gold dropped to a low of $12.65 on March 16. Over the weeks to follow, GOLD stock jumped to highs of $28.50. Consider that against the jump that gold had. Barrick gold stock exploded 125%. For a large-cap stock, that type of move can’t be ignored.
But Barrick gold wasn’t the only gold stock to have made such a jump. Shares of Kinross gold stock (KGC Stock Report) also broke out. The low priced mining stock hit a low of $2.72 in March. Kinross gold stock has since climbed as high as $7.25. That is also its new 52 week high and a level not seen since April of 2013. For Kinross gold stock price, it climbed 166.5% during that short period of time.
Newmont gold stock (NEM Stock Report) is another name of note. Shares have climbed from $33 on March 16 to new 52 week highs of $64.65 late last month. Not only is it one of the higher-priced gold stocks to watch, but Newmont has also made many more headlines recently. The company reported its Q1 earnings for 2020 this week. Tom Palmer, President, and Chief Executive Officer explained, “Our world-class diversified portfolio of assets and resilient team delivered solid first-quarter performance with $1.1 billion in adjusted EBITDA and $611 million in free cash flow.”
“Our robust balance sheet provides us with significant financial flexibility to continue allocating capital where it is needed most during this time of uncertainty while maintaining our industry-leading returns to shareholders.”
Are Higher Highs In Store For Gold Stocks?
With the current price of gold holding above $1,700 for the most part, it will be interesting to see what happens next. The latest news suggests that Americans could be getting back to business soon. With that, we’ve seen a rise in oil prices on positive economic sentiment. But there is still a lot left to the imagination. Competing reports from medical experts and the White House can’t seem to agree on the future risk of COVID-19. many already suspect and even ‘worse fall’ once the weather begins to change.
Then again, the full blowback of shutting down the economy hasn’t materialized yet either. You also have to consider the lasting ramifications of the trillions in stimulus money spent by the Fed and the U.S. government. How will that factor into inflation or even worse, stagflation?
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The list goes on and one but at the end of the day, big banks like Bank of America have said gold could go higher. The big question is if it does, when will that happen? For right now, however, it looks like gold stocks are outpacing the rising price of gold in a major way. Which gold stocks are on your list right now?