This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3 Glittering Gold Stocks To Watch As Prices Rise

​Chris Lau, Kapitall: Gold and related gold mining companies are rebounding from lows reached at the beginning of July. SPDR Gold Shares ( GLD ) rose 4.51% last week after the Comex Gold rose to $1,375 by the end of the week. It’s impossible to forecast the future price of gold, but one strategy you can use is to look for mining companies that are moving to improve their balance sheets. Companies cutting dividends are supposed to be companies to avoid, but investors might want to take a contrarian view on companies saving their cash. Below are three companies to watch, investors should carefully consider the movement in gold prices.

[Read more from Kapitall: 7 Stocks with Strong Inventory Trends and High ROI]

Comparing gold prices to gold miners

Click on the images below to see prices over time. Sourced from Zacks Investment Research. 

<p>Your browser does not support iframes.</p>

Gold miners outperformed the gold shares trust in the last three months. This is not surprising, because concerns of liquidity and quarterly losses had encouraged investors to sell their shares. A rebound in the price of gold alleviated some of those concerns. If gold prices hold at current levels, more mining companies will be operating with comfortable profit margins.

Investing ideas

Mining companies that dropped nearly 50% in the past year could provide investors with a strong return. Barrick Gold ( ABX ) expects cash costs for gold production this fiscal year to be $575 – $615/oz. The miner also produces copper. Last quarter, the company said it expected cash costs for copper production to be $1.95 – $2.15/lb. One negative side to holding the stock is the fact that the dividend was cut to $0.20 per share, but that saves the firm nearly $600 million a year. Barrick has a heavy debt burden, so the dividend cut will alleviate pressure on its balance sheet.

<p>Your browser does not support iframes.</p>

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs