Gold is a prevalent metal known by almost everyone in the world at large, but one thing that many people do not know is that when it comes to investing, gold is the most popular precious metal. Why is that? It is because there is always a demand for gold, as it hardly ever decreases in value. Hence the reason several people hold on to their gold jewelry and properties to sell later in the future and make a lot more money than they originally got it for.
Gold stocks are publicly traded securities that are mainly focused on gold. It is usually adopted by a wide range of industries like mining companies, gold companies, gold-focused EFTs [exchange-traded funds] and many others. Some of the top gold stocks companies are; Kinross Gold Corporation (NYSE: KGC), Barrick Gold Corporation (NYSE: GOLD), and Newmont Corporation(NYSE: NEM).
When it comes to making gold investment decisions, it is a smart choice to maximize the profitability that comes with investing in gold stocks. Here is why: Gold stocks are an excellent investment as the majority of gold companies usually get more significant total returns from gold stocks than if you were going to invest in regular physical gold. With gold stocks, you get the price of gold without having to own or store physical gold like it used to be done in times before.
Kinross Gold Corporation (NYSE: KGC) - Leveraged To Gold Price But Check The Rules
Kinross Gold Corporation is a premier Canadian-based metal and mining industry. Focused on gold and silver, they currently operate six active gold mines and trade under the KGC ticker on the New York Stock Exchange [NYSE] and under K on Toronto Stock Exchange[TSX].
Kinross Gold operates mines in Brazil, Mauritania, and the United States. The company, in 2022, projected that 58% of its gold production was to come from the mines in America. Their mines include; Fort Knox, Round Mountain, Bald Mountain, Paracatu, Tasiast, and Great Bear.
In May 2023, the company released its reports for the first quarter. They stated that they are on track to meet the annual production and cost guidance. The Kinross board of directors declared that the quarterly dividend of $0.03 per common share would become payable by the 15th of June, 2023. They also made it known that their Tasiat mine achieved two record-breaking productions in January and March.
As of 31st of May, 2023, KGC stock stood at $6.47 for TSX: K while NYSE: KGC is $4.75 with a 2.05% and 2.70% increase in the last 24 hours, respectively. Kinross reported an increase in their production and sales in the first quarter of this year compared to their production in the first quarter of last year. They produced 466,022 Au eq. oz. in the first quarter of the year 2023, in comparison to the 378, 421 Au eq. oz that got produced in the first quarter of 2022. They made 116,602 Au eq. oz. boost in sales from their first quarter of 2023 than they did in 2022.
The future outlook for Kinross gold stock looks promising as the company’s President and CEO ‘Paul Rollinson’ claims that they are well positioned and on track to deliver their annual production and cost guidance. He mentioned that they plan to maintain their financial strength and liquidity.
Barrick Gold Corporation [NYSE: GOLD] - Tier One Assets And Strong Cash Flow Limit Risks
Barrick Gold Corporation is a mining company that majors in gold and copper. They have 16 different operating sites in over 13 countries in the world. Based in Canada, they have sites in Argentina, Chile, Mali, Saudi Arabia, and Tanzania, amongst many others. Barrick Gold stock gets traded as ABX on Toronto Stock Exchange [TSK] and as GOLD on New York Stock Exchange [NYSE]. It is also a part of the S & P/TSX 60 component.
In 2019, Barrick Golds had 71 million ounces of proven and probable gold reserves. Despite the inflation that hit the industry in 2022, Barrick Gold was still able to generate more than $11 billion in revenue and we're able to maintain their EBITDA margin to be above 50%.
As of 31st of May, 2023, GOLD stock sat at $16.98 with a 1.22% increase in the last 24 hours. They declared their dividends for 2023 shareholders at $0.10 per share; the dividend matches the company's Performance Dividend Policy which they announced in 2022.
A dominant force in the mining industry in the world, they have the majority of their assets in America; they are recognized as the world's largest gold mining company until 2019.
In Barrick Gold's future outlook, the company expects a ‘potential for additional upside’ in regards to their Performance Dividend Policy, and they made it known that all ‘future forward statements’ had their basis upon several estimates and assumptions which could get affected by various other factors.
Newmont Corporation(NYSE: NEM) - Mining Blue Chip Poised To Outperform On Scale/Diversity
Newmont Corporation is an American-based gold mining company. It is the World's largest gold mining corporation. Founded in 1921, it has gold mines in Australia, Ghana, Peru, and Quebec, amongst many others. Newmont Corporation also mines copper, silver, zinc and lead. Newmont stock trades as NEM on New York Stock Exchange [NYSE] and is the only gold company in the S&P 500 component.
After acquiring various companies, Newmont, in May 2023, agreed to terms to purchase Newcrest. As of 31st of May, 2023, NEM stock sat at $40.72 for NYSE: NEM and TSX: NGT sat at $55.38 with a 1.80% and 1.79% increase, respectively. In their first quarter production of 2023, Newmont produced 1.27 million gold ounces, and they noted that they are on track to achieving their full-year guidance and have generated $481 million from continuing operations.
In the company’s future financial outlook, President ‘Tom Palmer’ says that they will continue to lead the gold sector in sustainable, profitable gold production. They further stated that they remain on track to achieve all that they planned to, ‘safely delivering long-term value to all of our stakeholders through sustainable and responsible mining.
Comparison Of The Three Gold Stocks
While all three gold stock investment companies are top gold mining companies, they all have their unique strengths and weaknesses, which make their brands unique and stand out from every other brand.
Newmont Corporation being the largest gold mining corporation in the world has a lot of strengths attributed to its name, amongst many, including that they are the only gold mining industry who are in the S & P 500 component. They also have over 30,000 employees and contractors. Very often, they measure their health, safety and loss prevention performance ensuring improvement against planned and actual actions
KGC is popular for its success in executing new projects and generating good returns on its capital by creating new streams of revenue. They have a very strong distribution network that can easily reach most of their market. They also have good cash flow that provides the company with revenue to expand new projects.
Barrick Gold Corporation has mines and various other projects on five continents. They have the world's highest-situated wind turbine in Argentina and have very high operational excellence resulting in them meeting their gold production. They are also known to spend high on technology, creating trust and positive values from their shareholders.
Being a very large corporation, Newmont Corporation needs to depend heavily on contractors to do the majority of the work that they have to do. Newmont has been previously accused of negligently spilling cyanide at one of its gold mines, resulting in water contamination and fish kills
Kinross Gold’s structure is in a form in which their organization is only compatible with new business models limiting their expansions in other segments; this allows them to have very limited success outside their core business. Compared to other brands, they have to spend more on the training and development of their employees because of their high attrition rate.
Barrick Gold Corporation has also been previously accused of some chemical spillage, including cyanide and mercury. Following previous accusations, they got excluded from one of the world's most significant wealth funds; The Government Pension Fund of Norway.
How Do These Three Corporations Differ?
Each of these three companies has what makes them who they are, so let's see how they differ in financial performance, stock trends and growth performance.
Barrick Gold has shown strong financial performance over the years. With their extensive mining operations and large-scale productions, the company has wide-ranging securities, which helps them when there is a change in the price of gold in the stock market.
Unlike Barrick gold, Kinross is smaller but also a top dog in the gold mining industry. They have had both positive and negative financial performance. Most of their challenges relate to cost control, production growth, and operational efficiency. In recent times Kinross Gold has made efforts to improve its portfolio and financial position.
Newmont, however, has over the years demonstrated a strong financial performance in similar relations with Barrick Gold. They have consistently made significant revenue and retained favorable profit margins. Newmont Stock has shown a positive trend in their focus on sustainable mining practices and pursues opportunities to optimize production, reduce costs, and enhance shareholder value.
All three companies’ financial performance and stock trends get influenced by similar factors like gold prices, production volumes, and industry dynamics.
Investing In Gold Stocks
Gold stocks are public companies that extract, process, finance and trade gold. There are three major ways of investing in Gold Stocks:
- Hold the share
- Buy an Option
- Trade in CFD
Hold the Share
Holding the share is an analyst's recommendation when it comes to investing. It usually refers to holding or maintaining ownership of a security over a long period. When one holds on to their shares, it helps you ride out high and low of the market and benefit from lower tasks, and they usually tend to go cheaper. However, holding the share exposes you to market risks and requires a large initial capital outlay.
Buy an Option
A stock option gives an investor the right to purchase or sell stocks at a set price within a specific timeframe. This usually gives the investor more leverage in that it allows you to earn a stock-like return while investing less money, but it involves higher fees and time decay.
CFD means a contract of difference, which is a contract that pays the difference between the settlement price between the opening and closing trade. It allows you to invest in the price of gold stocks without owning them. Now, CFDs usually give you access to gold stock at a lower cost than if you tried to buy it outright. Also, they allow for ease of execution and give you the ability to choose between going long or short.
Why Trade Gold Stocks CFD With VSTAR?
You might be wondering why VSTAR; VSTAR is one of the best platforms to trade best gold stocks CFDs, and it is a globally recognized and regulated trading platform that offers low trading fees, deep liquidity, and institutional-level trading experience. It gets better because VSTAR allows you to trade CFDs in over 1000 markets, including currencies, indices, commodities, crypto, US and HK stocks. Some of the CFD gold stocks that you can trade on VSTAR include; NYSE: KGC, NYSE: GOLD, and NYSE: NEM.
How To Trade Gold Stocks CFDs With VSTAR
Trading gold stocks CFDs with VSTAR is straightforward. Follow these steps:
- Download the VSTAR app and register for an account.
- Add funds to your account using one of the payment methods supported and recognized by VSTAR, such as Visa, Mastercard, Tether, Skrill, Neteller, SticPay, or Perfect Money. The minimum deposit you can make is only $50.
- Choose a gold stock option you want to trade and open a buy or sell position depending on your market view. You can decide to set up a stop loss to take profit orders and help you manage risk and reward.
- Identify what trading strategy you plan to use.
- Monitor your trade and close it when you want to lock in your profit or loss. You can also catch real-time trading opportunities by using the market feature.
- You want to know the best part, you can withdraw your funds whenever you wish by using the same payment method you used to make your initial deposit.
Tips To Help You Increase Your Net Profitability
- Know the time you want to select your position; endeavor to maintain a gold trading time that you plan to use generally, as this will help you know and select the best times for more price activity.
- Practice; you can use a demo account to prepare so that when you begin to trade, you are aware of how to navigate, come up with new ideas and strategies.
- It would be best if you kept an eye on the news; it will always give you an advantage, especially when it comes to precious metals like gold, whose pricing can get determined by a host of factors.
- Always go into a trade adequately researched.
The gold industry is one of the most dynamic sectors in the global economy, with a large and consistently growing market over the years. In this article, we looked at 3 of the top Gold Stock Corporations that would help you when trading Gold stocks and answered the questions on which are the best gold stocks to buy, where to buy gold stocks, and how to invest in gold stocks.
These Corporations are top-tier in the gold and metal industry with a large and loyal fan base, strong franchises, and various innovative technologies. They have also delivered impressive financial performance and growth potential in the past years. Start investing in gold stocks today. To do so, you should know about the various Gold stocks and use a trusted and reliable trading platform like VSTAR to trade your gold CFDs.