5 Gold Stocks to Buy for the Comeback

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With the odds of a Federal Reserve rate hike this year rapidly diminishing, investors are piling into areas of the market poised to best take advantage. Since the market low in late September, leaders have included energy, industrial, and materials stocks.

Gold prices GLD

Focus has also turned to precious metals, an area that has looked forlorn for years, on the expectation Fed chairman Janet Yellen won’t move to lift rates until higher inflation is staring her in the face.

Gold prices this week posted their best four-day gain since January. And money is piling into physical gold, with the Gold Trust SPDR (GLD) seeing a surge in holdings over the past two days amounting to 412,000 troy ounces — the best gain in nine months, lifting the total holding to three-month highs. Edge subscribers are participating with a position in the ProShares Ultra Gold (UGL).

Gold stocks are on the move, too, especially smaller players, as well with the Market Vectors Junior Gold Miners (GDXJ) challenging its 200-day moving average for the first time in more than a year.

For investors looking at individual plays, here are five names to check out.

Gold Stocks: Alamos Gold (AGI)

mirhaydari-gold-1Alamos Gold (AGI) is a mining company with operations focused in North America, including a 100% interest in the Young-Davidson mine. It also has assets in Turkey.

In late September, the company announced it had discovered zones of mineralization at its Cerro Pelon and La Yaqui sites in Mexico. Alamos will report quarterly results on Nov. 11 before the bell.

Gold Stocks: Coeur Mining (CDE)

mirhaydari-gold-2Coeur Mining (CDE) operates throughout the Americas as well as in New Zealand and Australia, marketing its silver and gold concentrates to smelters and refineries in China and Japan.

Analysts at ROTH Capital raised their price target on the stock to $6.50 on the expectation the company can continue to improve their mine recovery rates going forward. The new target represents more than 100% upside for CDE. Ahead of the release of official results on Nov. 2, the company reported that its third-quarter production increased 20%

Gold Stocks: Harmony Gold (HMY)

mirhaydari-gold-3Harmony Gold (HMY) explores for and mines gold in South Africa and Papua New Guinea. When the company last reported results in August, it reported better-than-expected earnings of four cents per share vs. expectations of a one-cent loss thanks to a 4% increase in gold production.

HMY stock is a more speculative idea based on the expectation of a move back to its 200-day moving average — which would be worth a 100%-plus gain from here.

Gold Stocks: NovaGold Resources (NG)

mirhaydari-gold-4Harmony Gold (HMY) explores and develops precious metals and copper properties throughout Canada and the United States with a focus on the Donlin Gold project in Alaska. Its other project is the Galore Creek copper-gold-silver mine in British Columbia co-owned with Teck Resources.

But the company is seeking capital-raising opportunities from its Galore Creek share to fund the ongoing permitting and development work at its Donlin project. NG is years away from the construction of mining facilities, making it a long-term pure-play pick on higher gold prices.

Primero Mining Corp (PPP)

mirhaydari-gold-5Primero Mining Corp (PPP) is a gold producer with operations throughout Canada and Mexico. In August, the company’s import and export status within Mexico was reinstated, allowing the resumption of the sale of the output of its San Dimas mine.

The company is set to release results on Nov. 4 before the bell.

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.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/10/gold-stocks-to-buy-agi/.

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