The 6 Most Promising Gold Trends For 2020
LONDON, Nov. 5, 2019 /PRNewswire/ -- 2020 could be a golden year. After one of the most geopolitically charged years in recent memory, gold is now set to soar. Prices began to bounce back in 2019, and as trade wars and conflict in the Middle East took hold, investors started racing back to their favorite safe haven asset. Mentioned in today's commentary includes: Barrick Gold Corporation (NYSE:GOLD), Newmont Goldcorp Corporation (NYSE:NEM), Kirkland Lake Gold Ltd. (NYSE:KL), Wheaton Precious Metals Corp. (NYSE:WPM), Rio Tinto Group (NYSE:RIO)
Gold stocks were depressed for years. But as worries of dwindling gold supplies—"peak gold"—and geopolitical uncertainty took root, investors began to bet on a major gold run.
Goldman Sachs has predicted that there are only twenty years of gold left. Goldcorp's chairman claimed that all major gold reserves have already been found. And with no sign of a solution in the U.S.-China trade war and no end in sight for Brexit, economic uncertainty is only worsening.
With that in mind, here are 5 gold trends to watch closely:
#1 Follow The Profits
The world's second most profitable and valuable gold miner, Barrick Gold Corp. (NYSE:GOLD), has had a block buster year, breaking the 30 billion market cap mark and attempting a hostile takeover of its major rival Newmont Mining (NYSE: NEM). The announcement shocked markets, and if it had gone through it would have been a $17.8 billion acquisition.
The deal failed in the end though, with the two companies agreeing to partner up on a potential find in Nevada, with a two-thirds share for Barrick. The venture has the potential to unlock nearly $5 billion over the next 20 years. So the biggest name in gold mining is about to get even bigger.
After reporting 4.5 million ounces in gold last year, Barrick claimed that Nevada could yield a further 76 million ounces. The upside here is undeniable. Barrick's stock is already up 32% this year, and as gold markets become increasingly bullish, the results should keep getting better. It didn't matter that the Newmont venture fell through, and with the joint venture in Nevada adding even more value – the good times should keep rolling for Barrick.
#2 Ancient Gold In Europe's Second Largest Mine
It may not be as big a name as Barrick, but Euro Sun (ESM, CPNFF) has made one of the biggest acquisitions of the year. This ancient Roman gold mine deep in the forests of Romania is ready to regain its historic fame. And Euro Sun Mining Inc. (ESM, CPNFF) is holding the key to its success.
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