Commodities & Metals

4 Gold Stocks to Buy Now Before the Inevitable 10% Sell-Off

Lee Jackson

Preliminary copper production results indicate it produced a total of 432 million pounds, compared with guidance for between 375 million and 430 million pounds.

Barrick says preliminary fourth-quarter results show sales of 1.413 million ounces of gold and 91 million pounds of copper, as well as fourth-quarter production of 1.439 million ounces of gold and 117 million pounds of copper.

The RBC price target on Barrick Gold is $20, which is in line with the $20.26 consensus target. The stock ending trading at $17.43 a share on Thursday.

Kirkland Lake Gold

This off-the-radar company offers investors solid upside potential. Kirkland Lake Gold Ltd. (NYSE: KL) engages in the acquisition, exploration, development and operation of gold properties.

The company owns and operates four underground gold mines, including the Macassa, Holt and Taylor mines located in northeastern Ontario, Canada and the Fosterville Mine located in Victoria, Australia. It also owns three milling facilities in Canada and Australia. The company was formerly known as Newmarket Gold and changed its name in December 2016.

Fourth-quarter gold production at the Fosterville mine surged 54% year over year and 21% sequentially to 191,893 ounces. For 2019, gold production surged 74% year over year to 619,366 ounces.

The surge in production reflects increased tons processed, higher average grades and improved recoveries. Notably, higher levels of production from the Swan Zone contributed to growth in average grade in the fourth quarter on a year-over-year basis.

RBC has set a $50 price target, but a consensus price target for the stock was unavailable. The last trade on Thursday came in at $44.15 a share.

Wheaton Precious Metals

This precious metals royalty company makes good sense for more conservative accounts looking to have exposure to the sector. Wheaton Precious Metals (NYSE: WPM) is a Canada-based precious metals streaming company with approximately 60% of its revenues from the sale of silver and 40% from gold.

Under the terms of long-term contracts, the company purchases silver and gold from a variety of mines, including Goldcorp’s Penasquito mine in Mexico, Vale’s Salobo mine in Brazil, Lundin Mining’s Zinkgruvan mine in Sweden and Glencore’s Antamina and Yauliyacu mines in Peru, then sells the silver and gold into the open market.

Shareholders receive a 1.28% dividend. The $33 RBC price target compares with the $35.13 consensus target, as well as the most recent close at $28.03 per share.

Proper asset allocation should always include a single-digit percentage holding of precious metals like gold and silver. Not only do they hedge inflation over the long term, but they also really help if the market does go into correction or bear market mode, as they tend to trade inverse to markets.