The story of 2016 so far: If you haven’t been in precious metals, you’ve been left behind.
Large-cap stocks are down nearly 7% for the year. Meanwhile, the SPDR Gold Trust ETF (GLD) is up more than 7% and silver is up nearly 10%. Gold stocks, as represented by the Market Vector Gold Miners ETF (GDX), are up nearly 37% for the year to date.
The impressive run has been driven by rising expectations of more aggressive monetary policy easing by the major central banks, worries about the health of financial institutions in Europe and China and a recent bout of weakness in the U.S. dollar.
While I’ve been recommending precious metal mining stocks for months (well, since November), over the past week I’ve recommended clients take some winnings off the table as the industry group had become extended and overbought.
To my surprise, they’ve kept charging higher. Here are three that simply look unstoppable.
Precious Metals Heating Up: Kinross Gold Corporation (USA) (KGC)
Kinross Gold (KGC) shares are rising on a trajectory normally reserved for space-bound rockets, returning to early 2015 levels.
Technically, the stock is on the verge of a “golden cross” — with the 50-day moving average about to cross up and over the 200-day moving average — for the first time since 2012. Yep, nearly four years ago.
Edge subscribers are enjoying a whopping 76.3% month-to-date gain in the stock.
Precious Metals Heating Up: Barrick Gold Corporation (USA) (ABX)
Barrick Gold (ABX) shares are the picture perfect image of smooth and steady gains after breaking out of a long consolidation pattern going back to July.
ABX has already achieved a golden cross, its first since 2014 as it tests two-year highs.
Edge subscribers are enjoying a total gain of nearly 80% since first recommended on Nov. 19.
Precious Metals Heating Up: Goldcorp Inc. (USA) (GG)
Goldcorp (GG) shares are rising nicely, giving up a little to ABX and KGC in terms of outright percentage gains in exchange for somewhat lower volatility.
The stock is now contending with overhead resistance from its August and October highs of nearly $16. A breakout here would set up a challenge of the early 2015 highs near $20 — a 25%-plus gain from here.
Edge subscribers are already enjoying a 22.5% total gain in the stock.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
