Last Thursday, I wrote about five precious metals stocks that were preparing for a move higher as investors seemed preoccupied — as 2015 gets started — with safe havens instead of risk taking. This week, the theme has continued. The 10-year U.S. Treasury yield has dropped to just 1.9%, stocks have slumped., and crude oil has dropped to fresh lows.
![gold](https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif)
In response, gold and silver stocks have soared as investors batten down the hatches ahead of a number of big catalysts in the weeks to come, from elections in Greece to big decisions on bond buying stimulus from the European Central Bank.
A number of the stocks discussed have put in big moves already, with Anglogold (AU) rising nearly 23% since I recommended it to Edge subscribers on January 6. Buenaventura (BVN) is up nearly 13%.
Further gains look likely as precious metals push off of a long, three-year consolidation pattern following the meltdown from the 2011 highs. So here are five more stocks in the sector that are good to go for new money.
Allied Nevada Gold (ANV)
The company was initiated with a buy rating by analysts at H.C. Wainwright back in late December because of the “intriguing investment opportunity at its current valuation in offering exposure to a mid-tier gold producer in a safe and stable jurisdiction.”
A mere return to its 200-day moving average would be worth a 100%-plus move from current levels.
Golden Star Resources (GSS)
Shares lost more than two-thirds of their value from their June high, and are poised for an oversold rebound.
Coeur Mining Inc (CDE)
Shares are up more than 70% from their November low, and are poised for more gains. A return to its July high would be worth a gain of 50%-plus from here.
Franco-Nevada Corp. (FNV)
Less risky than the other names here, a return to the August highs would be worth an 11% rise for the stock.
Royal Gold (RGLD)
Based in Denver, Royal Gold (RGLD) focuses on acquiring mine royalties from mines that are in production or in the development phase. This provides a smooth earnings stream and a one-time capital expense, leaving the company open to participating in brownfield expansions to existing facilities without additional capital expense.
As a result, earnings growth has been steady in this difficult environment for the industry. Earnings are expected to grow 33% in the current fiscal year, with another 27% growth in fiscal 2016. Revenues are expected to grow from $237 million in fiscal 2014 to $369 million in fiscal 2016.
A return to the August highs would be worth a 17% move from here.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters.