If you’re looking for the best gold stocks right now, the world may be your oyster. Unlike Tesla which apparently is too high in price according to CEO Elon Musk, analysts are starting to think that gold stocks are still cheap. The bigger picture has yet to be fully seen by the markets in many ways. The current economic state is one that we’ve not seen in modern history. What I’m referring to is the massive influx of helicopter money fueling our COVID-19 economy.
In an interview, Kitco’s senior analyst Jim Wyckoff explained the general idea right now.“ We have big risks still ahead for the U.S. economy and for other economies around the world.”
“We are going to start to see economic data in the U.S. and in Europe show up that’s going to be really staggering, to remind us how serious the damage has been done to the global economy.”
The crazy part is that I don’t think the mass media is focusing on the iceberg we can’t see compared to the floating “small island of ice” that’s being presented. Just to take something into consideration here is that the U.S. Economic Advisor Larry Kudlow has said that the United States could simply spend its way out of this crisis.
[Read More] How Will Gold Prices Perform In May? April Up 6%
Does this concern anyone else? In any case, the argument that currencies could be at risk here with more “new money” hitting the market is a growing point of contention.
Are These The Best Gold Stocks Right Now?
With gold bulls starting to see the light, gold prices have recovered on Friday. This came after a 6 day slide took the precious metal to lows of $1,676. Heading into the end of the week, the price of gold has bounced back above $1,700 yet again. This also saw a number of the best gold stocks on Friday follow suit.
Best Gold Stocks To Watch: First Majestic Silver
While the name may suggest otherwise, First Majestic Silver (AG Stock Report) has an array of silver and gold mining claims. The company owns a few producing mines including the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, the San Martin Silver Mine, the Del Toro Silver Mine and the La Parrilla Silver Mine.
While the stock saw a pull-back from this week’s high of $8.70, the overall trend has upheld. In March the gold stock dipped to lows of $4.17; penny stock territory. But since then AG stock has been on a consistent climb higher. This 100% return to over $8 comes not only as the price of gold presses on but also during a period where First Majestic has also been making strategic moves.
The company posted its Q1 production numbers in April. Total production in the first quarter of 2020 reached 6.2 million silver equivalent ounces consisting of 3.2 million ounces of silver and 32,202 ounces of gold. As previously announced on April 6, 2020 , the Company had withdrawn its 2020 production and costs guidance as a result of Mexico’s Ministry of Health’s Federal Decree to temporarily suspend all mining operations until April 30, 2020. Needless to say, AG stock has performed well since mid-March and could be one of the best gold stocks to watch on Friday.
Best Gold Stocks To Watch: Barrick Gold
Shares of Barrick Gold stocks (GOLD Stock Report) (ABX) rallied in a similar fashion on Friday. After hitting premarket lows of $25.06, Barrick gold stock jumped back above $27 during the May 1 session.
In a recent episode of CNBC’s Mad Money, host Jim Cramer explained his take on a few gold stocks. Franco Nevada Corp (FNV Stock Report) has been “real good” and Cramer sees it as a winner. He would “buy more on a pull back”. He likes Barrick Gold Corp even more.
Read More
- No Gold Bars For Sale But Gold Prices Hold Amid Fed Talks
- What’s Next With COVD-19 & How Will It Affect Gold Stocks?
After reaching new 52-week highs on April 23 of $28.50, Barrick gold shares have steadily pulled back. Whether it was profit taking or shedding safe haven assets on the thought of economic reopening, Barrick gold stock hit lows of nearly $25 this week. But it looks like it could finish the week on a high note. The stock is trading within striking distance once again of $27 during the final hour of trading on Friday.
Best Gold Stocks To Watch: Yamana Gold
Another one of the best gold stocks to watch on Friday was Yamana Gold (AUY Stock Report). Shares of the gold penny stock mirrored both Barrick and First Majestic hitting new weekly lows in the morning. However, for Yamana gold stock, shares rallied back to a range within $0.10 of its 2020 high.
This week the company announced the results of the votes held at the annual meeting of shareholders for the election of directors, the appointment of auditors, and the advisory resolution on executive compensation. All topics voted on were carried through by a very large majority decision.
The company reported strong first-quarter production and cash flows. It was also able to increase earning and reduce net debt. On top of that, Yamana gold stock dividend was increased by 25%. Wit the apparent backdrop of a financial crunch after the dust settles on stimulus, do you think Yamana gold stock and others will continue heading higher in 2020?