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【XM Decision Analysis】--The Best Gold Stocks to Buy Now
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Hello everyone, today XM Forex will bring you "【XM Decision Analysis】--The Best Gold Stocks to Buy Now". I hope it will be helpful to you! The original content is as follows:
Gold is an excellent portfolio hedge due to its low correlation with equities. It also offers protection against inflation, providing stability during uncertain times, and a psychological wealth effect. The inverse relationship to the US Dollar adds to its appeal as a persification asset. With inflation and inflation expectations uncomfortably high, the potential for an interest rate cut by the US Federal Reserve, and geopolitical risks rising, investors should consider gold and gold stocks, with this precious metal trading at all-time highs.
What Are Gold Stocks?
Gold stocks are publicly listed xmcnbrokers.companies active in the gold sector. They are primarily involved in the exploration, extraction, and refining of gold. The recent adoption of AI has opened the path for service xmcnbrokers.companies that use AI to discover deposits. Gold storage xmcnbrokers.companies offer an alternative to direct gold exposure. Still, investors should focus on exploration, extraction, and refining of gold via established and junior gold miners.
Why Should You Consider Investing in Gold Stocks?
Gold has always drawn interest as a wealth and status symbol, but gold stocks also offer numerous benefits, and investors should consider adding them to their portfolios. Gold outperforms during economic uncertainty and geopolitical events, providing downside protection for equity portfolios. Gold stocks also offer an inflation hedge and outperform during periods of US Dollar weakness.
Here are a few things to consider when evaluating gold stocks:
- Invest in a xmcnbrokers.combination of established gold miners for stability and pidends, and junior miners, which carry greater risks but offer notable upside potential
- Analyze gold reserves of gold miners to gauge the longevity of their operations
- Focus 75% of your portfolio on gold stocks with mining operations in the top ten countries for gold production, with the remaining 25% on exciting global projects
What Are the Downsides of Gold Stocks?
Volatile gold prices pose the most notable risk, as they directly impact the profitability of gold stocks. While the last three years have witnessed high gold prices and all-time highs, which encouraged exploration and higher pidend yields, other periods have seen depressed prices. Long-term, gold is likely to march higher as the current global economic and political landscape faces graver risks than at any point in the past 70 years.
Here is a shortlist of attractive gold stocks:
- Caledonia Mining Corporation (CMCL)
- AngloGold Ashanti (AU)
- SSR Mining (SSRM)
- Agnico Eagle Mines (AEM)
- Franco-Nevada Corporation (FNV)
- Alamos Gold (AGI)
- Barrick Mining Corporation (B)
- Allied Gold Corporation (AAUC)
- Gold Fields (GFI)
- DRDGold (DRD)
An Update on Our Previous Best Gold Stocks to Buy Now
In our previous installment, I highlighted the upside potential of Caledonia Mining Corporation and AngloGold Ashanti.
Caledonia Mining Corporation (CMCL) - A long position in CMCL between 26.70 and 28.54
CMCL surged by over 33% before retreating, and my stop loss triggered, closing the position at 36.25 for a 25% profit.
AngloGold Ashanti (AU) - A long position in AU between 58.83 and 60.36
AU rallied nearly 20% before reversing, and my stop loss triggered, closing the position at 69.30 for a profit of over 15%.
SSR Mining Fundamental Analysis
SSR Mining (SSRM) is a gold, silver, copper, lead, and zinc producer. It owns the largest silver mine in Argentina. It is also a member of the Russell 2000.
So, why am I bullish on SSRM after its earnings release?
I am bullish on SSR Mining’s persification and its relatively low All-In Sustaining Cost (AISC) of $2,359 per ounce for gold. Third-quarter gold equivalent production was 103,000 ounces at an average realized price above $3,500 per ounce. It generated $72 million in free cash flow and ended the quarter with $409 million in cash and total liquidity of over $900 million. SSRM also reported promising results for extending the mine life at core mines. xmcnbrokers.commodity prices should remain elevated, boosting SSRM’s revenues.
SSR Mining Fundamental Analysis Snapshot
Metric
Value
Verdict
P/E Ratio
20.47
Bullish
P/B Ratio
1.32
Bullish
PEG Ratio
Unavailable
Bearish
Current Ratio
2.41
Bullish
Return on Assets
3.72%
Bullish
Return on Equity
6.61%
Bullish
Profit Margin
15.36%
Bullish
ROIC-WACC Ratio
Negative
Bearish
Dividend Yield
2.47%
Bullish
The price-to-earnings (P/E) ratio of 20.47 makes SSRM an inexpensive stock. By xmcnbrokers.comparison, the P/E ratio for the Russell 2000 is 33.62.
The average analyst price target for SSRM is 24.72. It suggests limited upside potential based on analyst estimates, but I expect this gold producer to exceed it, given average gold prices.
SSR Mining Technical Analysis

- The SSRM D1 chart shows price action breaking out above its ascending 50.0% Fibonacci Retracement Fan level
- It also shows SSR Mining xmcnbrokers.completing a breakout above its horizontal support zone
- The Bull Bear Power Indicator is bearish with an ascending support line, approaching a bullish crossover
My Call
I am taking a long position in SSRM between 20.61 and 21.86. SSR Mining has impressive earnings-per-share growth of nearly 60%, an excellent liquidity position, and low AISC, all of which support future revenue growth.
Agnico Eagle Mines Fundamental Analysis
Agnico Eagle Mines (AEM) is a gold producer with mines in Canada, Finland, Australia, Mexico, and the US. AEM has paid a cash pidend since 1983 and has a strict policy of not entering into forward gold sales to realize current gold prices. It is also a member of the S&P/TSX 60.
So, why am I bullish on Agnico Eagle Mines after it reported earnings?
The All-In Sustaining Cost (AISC) of $1,373 per ounce for gold positions Agnico Eagle Mines among the lowest cost gold producers. Third-quarter payable gold production clocked in at 866,936. It resulted in free cash flow from operations of $1,816 million or $3.62 per share. I am bullish on the advancement of projects that will boost future revenue growth, and I expect gold prices to remain elevated.
Agnico Eagle Mines Fundamental Analysis Snapshot
Metric
Value
Verdict
P/E Ratio
24.68
Bullish
P/B Ratio
3.70
Bearish
PEG Ratio
0.72
Bullish
Current Ratio
2.12
Bullish
Return on Assets
10.55%
Bullish
Return on Equity
14.67%
Bullish
Profit Margin
32.62%
Bullish
ROIC-WACC Ratio
Positive
Bullish
Dividend Yield
0.99%
Bearish
The price-to-earnings (P/E) ratio of 24.68 makes AEM an inexpensive stock. By xmcnbrokers.comparison, the P/E ratio for the S&P 500 is 30.83.
The average analyst price target for Agnico Eagle Mines is 194.19. It suggests good upside potential with reasonable downside risks.
Agnico Eagle Mines Technical Analysis

- The AEM D1 chart shows price action breaking out above its ascending 38.2% Fibonacci Retracement Fan level\
- It also shows Agnico Eagle Mines inside a bullish price channel
- The Bull Bear Power Indicator is bullish with an ascending trendline
My Call
I am taking a long position in Agnico Eagle Mines between 163.40 and 174.67. The earnings-per-share growth of 90% or more ranks among the best in the gold industry. The PEG ratio suggests more upside, operational metrics remain excellent, and AEM benefits from improving margins.
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