These five gold mining stocks are soaring to new highs as investors look for alternatives to the dollar dropping and to U. S. government bonds sliding. That Trump’s tariff policies are creating uncomfortable uncertainties about the economy is now a given among Wall Street investment firms and their customers.
Buying of precious metals and related equities is the result. The new 52-week highs in so many gold stocks is a reaction to the possibility of much higher prices thanks to tariffs. The chance of a recession is a major factor. This classic inflation-hedge is showing its strength as confidence in the U. S. dollar dissipates.
Gold Stocks Soar To New Highs
Anglo Gold Ashanti
The gap up in price today follows yesterday’s new high that broke above the early April peak. The 50-day moving average in mid-February crossed above the 200-day moving average, a signal perhaps of the coming strength.
The United Kingdom-based miner with operations around the world has a market capitalization of $21.69 billion. The price earnings ratio is 18.49 at a time when the p/e of the S&P 500 is 32.55. Anglogold Ashanti pays a dividend of 3.99%.
DRD Gold
Today’s new high takes out the earlier-in-the-month high and keeps the 50-day moving average trending upward. The 200-day moving average trends higher as well. From the September low of near $7.50 to the present $16 amounts to more than a double for those who bought then and held.
DRDGOLD has a market cap of $1.39 billion. The price-earnings ratio is 14.91. The company has no debt, long-term or otherwise. This year’s earnings are up 37.96% and up over the past five years by 150.85%. The South African miner offers investors a 1.90% dividend.
Eldorado Gold
The gap up in price today takes it to above the previous high from mid-October 2024, a clear sign of strong new interest. Both the 50-day moving average and the 200-day moving average have turned upward. The stock now trades well above both of those measures.
Headquartered in Vancouver, British Columbia, Eldorado Gold has a market cap of $3.96 billion. It trades with a price-earnings ratio of 13.68 and at just 1.01 times book value. The debt-to-equity ratio is .24. The company does not pay a dividend.
Iamgold
Today’s 6.25% gain comes on top of yesterday’s breakout above the early to mid-February highs. The 50-day moving average has remained above the 200-day moving average for the whole chart period. From the August 2024 low of near $3.40 to the current $7.31 amounts to more than a double.
This Canadian-based miner has a market cap of $4.18 billion. The price-earnings ratio is 5.01 and it trades at 1.25 times book. The debt-to-equity ratio is .35. Eldorado Gold does not pay a dividend.
The U. S. Dollar
Today’s slide takes the dollar to a new low. It’s taken out the late September 2024 lows, a former support level for the currency. It looks as if the 50-day moving average may cross below the 200-day moving average in what would amount to a serious trend reversal.
Stats courtesy of FinViz.com. Charts. Courtesy of Stockcharts.com.
More analysis and commentary at johnnavin.substack.com.
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