By James Dennin for Kapitall.
Gold prices fell precipitously throughout the first have of 2014 after a brief rally at the end of last year, prompting some investors to start buying the yellow metal again.
Exchange traded products that carried gold saw more than
$300 million in outflows through
July, a trend which has now almost reversed—even though some analysts think gold prices will continue to fall.
Gold is a safe-haven asset, and conflicts overseas in Ukraine and the Middle East may boost its price. If the equity market strengthens or if interest rates on bonds start to rise, however, that trend could be reversed.
We decided to screen gold mining stocks for signs of bullishness, so we looked for signs of institutional purchasing from groups like pensions and hedge funds.
Since these managers often have access to better information than the typical investor, it's a good place to look for standout stocks amongst less familiar names—like these small-cap gold miners that operate mostly overseas.
We found 3 companies experiencing a spike of 5% or more in purchasing over the last quarter—a very high threshold. Do you think funds are right to buy these gold stocks? Use the list below to begin your analysis and let us know what you think in the comments.
Click on the interactive chart to view data over time.
1. Midway Gold Corp.
): Engages in the acquisition, exploration, and development of mineral properties in North America. Market cap at $147.52M, most recent closing price at $0.89.
Net institutional purchases in the current quarter at 7.0M shares, which represents about 7.22% of the company's float of 96.89M shares.
2. Primero Mining Corp.
): Engages in the production of precious metals in Mexico. Market cap at $1.27B, most recent closing price at $7.96.
Net institutional purchases in the current quarter at 41.8M shares, which represents about 26.9% of the company's float of 155.38M shares.