Gold could see a major comeback.
Over the weekend, the metal was up about $16 to $1,771.30.
All thanks to a potential peak in the U.S. dollar, with a shift in interest rate expectations. “Right now, everything is coming together for gold,” said Adam Button, chief currency strategist at Forexlive.com, as quoted by Kitco.com. “If inflation has truly peaked, then so has the U.S. dollar and that will continue to support gold prices.”
From here, analysts at UBS say gold could see $1,900 by the end of 2023. “Not only does UBS expect the Fed to end its aggressive tightening cycle in 2023, but it is looking for the central bank to cut rates by 175 basis points by the end of the year,” added Kitco.com.
If that’s the case, investors may want to start buying beaten-down gold stocks.
Barrick Gold (GOLD)
Barrick Gold is one of the biggest companies in the gold industry.
Operating mines and projects in 18 countries in North and South America, Africa, Papua New Guinea, and Saudi Arabia, its portfolio spans the world’s most prolific gold districts in the world. The company also expects to produce about 4.5 million ounces of gold per year through 2030, and just announced a third-quarter dividend of 15 cents. That dividend will be paid on December 15, 2022, to shareholders of record at the close of business on November 30, 2022.
“The combination of the performance dividend policy and share buyback program that were introduced earlier this year has allowed us to provide significant benefits to our shareholders,” says senior executive vice-president and chief financial officer Graham Shuttleworth. “Anchored by our solid operating performance and cash flows, we continue to maintain a robust balance sheet whilst simultaneously providing our shareholders with meaningful returns.”
VanEck Vectors Gold Miners ETF (GDX)
One of the best ways to diversify at less cost is with an ETF, such as the VanEck Vectors Gold Miners ETF (GDX). Not only can you gain access to some of the biggest gold stocks in the world, but you can also do so at about $28.30 a share. With an expense ratio of 0.51%, the ETF holds positions in Newmont Corp., Barrick Gold, Franco-Nevada, Agnico Eagle Mines, Gold Fields, and Wheaton Precious Metals to name a few.
Sprott Junior Gold Miners ETF (SGDJ)
With an expense ratio of 0.35%, the SGDJ ETF seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, the Solactive Junior Gold Miners Custom Factors Index. The Index aims to track the performance of small-capitalization gold companies whose stocks are listed on regulated exchanges.
Some of its top holdings include Lundin Gold Inc., Seabridge Gold, Equinox Gold, Victoria Gold, Westgold Resources, Osisko Mining, K92 Mining Inc., and Novagold Resources to name a few.