Year to date, the S&P 500 is down 1%.
But gold is actually up 25%.
And in my humble opinion, it’s just getting started…
Gold could easily jump another 50% or more by this time next year. And if we continue along a similar trajectory of Federal Reserve money-printing, it could increase rapidly for years to come.
You see, the “knock on effect” of central banks around the world printing their fiat currencies at record paces is just starting to catch up to them…
The more there is of something, the less each unit is worth…
The less there is of something, the more each unit is worth…
It’s basic supply and demand theory.
And that’s exactly what you’re seeing play out between government-backed fiat currencies (which are unlimited in supply) versus hard assets like gold (that are limited in supply).
That’s why you could buy a house in 1980 for about the average price you can buy a new car today ($38,000).
A lot has changed in 40 years, sure. But two things have remained constant:
- Central banks have printed more and more money, devaluing each unit of account (also known as inflation).
- One ounce of gold can buy the same things as one ounce of gold did 40 years ago.
Not only do I expect these trends to continue for decades to come, I think one ounce of gold will be able to buy significantly more stuff than one ounce of gold can now (known as deflation).
This makes gold a great “store of value” against inflationary fiat currencies printed at will by central banks around the world.
But buying physical gold can be a hassle. Not only is it expensive to store safely, it can be difficult to verify.
Just look at what happened to China earlier this month… They found out 83 tons of what they thought was pure gold (4.2% of their total reserves) was actually gilded copper.
That’s one major reason I like buying gold mining stocks.
Plus, gold mining stocks historically outperform physical gold by 2x.
So without further ado, here are my favorite gold mining stocks to buy now and hold long-term…
Newmont Corp. (NYSE: NEM)
[finviz ticker=NEM]Founded in 1921, Newmont Corporation is one of America’s oldest gold mining companies still operating today.
The company has ownership of gold mines in Colorado, Nevada, Ontario, Quebec, Mexico, the Dominican Republic, Australia, Ghana, Argentina, Peru, and Suriname.
And with a $53 billion market cap, it’s the world’s largest gold producer.
In fiscal 2019, the company produced 6.3 million attributable ounces of gold and 624 million attributable “gold equivalent” ounces from the sale of byproducts. And its all-in sustaining costs (AISC) for the year was $966 per ounce.
On a long-term basis, the company expects to produce 6.2 to 6.7 million ounces of annual gold production while driving AISC down to $800 per $900 per ounce.
And with the price of one gold ounce currently at $1,900, that leaves Newmont with a lot of room for fat margins.
Newmont has approximately 24,000 employees and contractors worldwide, and is the only gold company in the S&P 500.
Speaking of the S&P 500, NEM stock has outperformed the index by a wide margin so far this year.
NEM is up 55%, while the S&P is down 1%.
Since it’s virtually inevitable that we see additional stimulus pumped into financial markets by central banks around the world printing more fiat currencies, I think this trend has a high probability of continuing throughout the rest of 2020 and next year.
Kinross Gold Corp. (NYSE: KGC)
[finviz ticker=KGC]Founded in 1993, Kinross Gold Corp. (NYSE: KGC) is a Toronto-based senior gold producer that operates eight active mines in the United States, Brazil, Ghana, Mauritania, and Russia.
In 2019, the company produced roughly 2.5 million gold equivalent ounces (worth $4.8 billion today). That’s up from 2.4 million in 2018 and I expect another increase in 2020.
Let’s say the company mines 2.6 million ounces in 2020 and the price of gold skyrockets to $3,000 per ounce, as we expect. That would be worth $7.8 billion – an increase of 62.5% in year-over-year revenue.
Historically, Kinross used acquisitions to fuel expansion into new regions and production growth.
In December 2017 for example, Kinross acquired mineral rights to a 709-acre territory in Fairbanks, Alaska that mining experts believe contains 2.1 million ounces of gold.
In fiscal 2018, the company lost $23.6 million. But in 2019, as gold prices started rising again, Kinross turned a $718.6 million profit.
As long as gold continues its positive price momentum, Kinross’ profits should easily double in fiscal 2020.
And KGC stock should rise along with it.
Currently, Kinross is trading for $8.50 per share.
But I think it could reach $20 before the end of 2021. That represents a potential gain of 135%.
New Gold Inc. (NYSE: NGD)
Headquartered in Toronto, New Gold Inc. (NYSE: NGD) is an intermediate gold mining company with operations across the globe.
[finviz ticker=NGD]The company has a portfolio of three producing assets: The New Afton Mine in Canada, the Mesquite Mine in the United States, and the Cerro San Pedro Mine in Mexico.
In addition, New Gold owns 100% of the Rainy River and Blackwater projects in Canada, along with a minority stake in the gold stream on the El Morro project in Chile.
The New Afton Mine is the largest division, contributing roughly 50% of group revenue.
Speaking of revenues, they’ve increased 63% from fiscal 2017 to 2019.
And I think they could increase another 40-60% in 2020 with the price of gold surging.
It wouldn’t surprise me to see NGD stock double again (to $3.20 per share) before the end of the year.
Massive gold deposit discovered…
Research shows that one small junior miner that’s flying under the radar is sitting on what could soon be one of the top 5 largest gold deposits in the world.
It’s all coming to the surface now. Big drilling projects are underway… And while this area is a relatively unknown secret, it won’t remain that way for long.
Later this year, the company will be releasing resource estimates and when they do, the secret will be out.
And put simply, this company could soar 10x from today’s prices.
That’s why I rushed to get this message in front of you today. I explain the full details in this short video, including how you can take advantage.
