Newmont Goldcorp Corp (NGT)

[NYBob]

Gold Continues to Rally: Time to Add Miners to the Portfolio?
Andrew Walker | January 13, 2018 | More on: GG G


A sharp rise in the price of gold over the past month caught many pundits
by surprise, and investors are wondering if more gains are on the way.

Let’s take a look at the current situation to see if this is the right
time to buy gold stocks.

Strong move

Gold is up $90 in the past month, rising from US$1,239 to US$1,329 per
ounce.

On the surface, the rally is a bit of a surprise, given the outlook for
interest rate increases in the United States and the absence of fear in
the market.

Rising interest rates tend to be negative for gold, as they increase the
opportunity cost of holding the yellow metal, which doesn’t provide any
yield.
Higher rates can also put a tailwind behind the U.S. dollar, in which
gold is priced, although that has not been the case in the past year.

In fact, the U.S. dollar index, which measures the value of the American
dollar against a group of key currencies, just hit its lowest level
since September.

As the dollar weakens, holders of foreign currencies often take advantage
of the situation to buy gold.

On the fear side, the recent decision by North Korea to join the Olympics
initially hit gold prices, as safe-haven buyers exited positions based
on geopolitical fears. The dip, however, didn’t last.

So, why is gold rising?

Weaker inflationary pressures in the United States could be forcing
analysts to question the assumption the U.S. Fed will raise interest
rates three times in 2018. If the market starts to price in two moves or
less, gold could extend its rally.

Another theory links the gold surge to the pullback in cryptocurrencies.
Some pundits say funds that went into the digital currencies in Q4 2017
are now finding their way back to gold, as fears increase about a
potential cryptocurrency crash.

Which stocks should you buy?

Gold stocks have moved higher, but not at the pace one would expect given
the surge in gold prices, so there might be an opportunity to make a
contrarian bet and add some miners to the portfolio.

One stock to consider is Goldcorp Inc. (TSX:G)(NYSE:GG).

The company is working its way through a turnaround program and appears
to be on the right track.

Management is targeting a 20% increase in both reserves and production
over the next five years, while all-in sustaining costs are expected to
fall by the same amount.

If gold continues to recover, Goldcorp should see strong improvements in
margins and cash flow.

At the time of writing, Goldcorp trades at $17.40 per share. Last February, the stock was at $23 when gold traded for close to US$1,240 per ounce, so there could be some upside in the near term.

Canada's answer to Amazon.com

You've probably never even heard of this up-and-coming e-commerce
powerhouse headquartered in Eastern Ontario...

But, despite coming public just last year, it's already helping the likes
of Budweiser... Tesla... Subway... and Red Bull move $9.9 BILLION (and
counting) worth of goods online each year.

And now it's caught the eye of the legendary investor who got behind
Amazon.com in 1997 -- just before it shot up over 23,000% and made
investors like you and me rich beyond their wildest dreams.

Click here to discover why this investor says it's time to buy.

Fool contributor Andrew Walker owns shares of Goldcorp.

https://www.fool.ca/2018/01/13/gold-continues-to-rally-time-to-add-miners-to-the-portfolio/

10 charts that show why gold is undervalued right now -
Frank Holmes - U.S. Global Investors | about 19 hours ago |

http://www.mining.com/web/10-charts-show-gold-undervalued-right-now/


Gold Prices Are Rising as the Fed Hikes Rates -

https://moneymorning.com/2017/12/15/dont-be-fooled-gold-prices-are-rising-even-as-the-fed-hikes-rates/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+USMoneyMorning+%28Money+Morning%29

Note ....
The gold bull market in the 1970s and 1980s happened
even as the Fed tested record-high interest rates.
The yield on the 30-year Treasury bond rallied sharply
during the late 1970s, eventually topping 15% in 1981.
Gold rallied from about $100 per ounce in 1976
to over $850 per ounce in 1980.

In GOD We Trust -






http://www.kitconet.com/images/live/au0001wb.gif

Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -

http://www.biblebelievers.org.au/monie.htm

- Happy New Year -