Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



3 Gold Shares Rising Strongly

LONDON -- Gold's slide slowed last week, and after climbing to a mid-week high of $1,617, gold on the April contract finished the week just 0.9% lower, at $1,572.

Of course, the only practical way for most private investors to invest in gold is through exchange-traded funds. The largest gold ETF, the $64 billion SPDR Gold Trust  (NYSEMKT: GLD  ) , fell 0.4% to $152.44 last week, while London-listed Gold Bullion Securities  (LSE: GBS  ) rose 0.03% to $151.84 over the same period. So far this year, shareholders of Gold Bullion Securities have seen the value of their holdings fall by 5.3%, while the value of SPDR Gold Trust shares has fallen by 5.9%.

Gold's big movers
The share price of gold miners is closely linked to the price of gold, but it's not always a perfectly matched relationship, and last week we saw the share price of several of the U.K.'s biggest listed gold producers start to recover, after being battered over the previous two weeks by falling metals prices and broker downgrades.

Russia-focused Polymetal International  (LSE: POLY  ) gained 2% to 1,002 pence during the week, making it the top-performing big-cap miner. Polymetal's gains followed the previous week's news that the firm had acquired a new exploration license in Russia, covering an area with probable ore reserves representing 700,000 ounces of gold. The company believes these reserves will be cheaper to mine than some of its existing assets, boosting profitability at lower gold prices. Polymetal's share price could also see further support from institutional fund buying over the next fortnight, as it is due to be added to the widely used STOXX Europe 600 index on March 18, 2013.

Randgold Resources  (LSE: RRS  ) climbed 1% to 5,430 pence last week, against the backdrop of a falling gold price. News that Mali's gold production exceeded forecasts in 2012 and was not affected by the country's civil war may have helped stabilize Randgold's share price -- in 2012, almost 75% of Randgold's production came from its mines in Mali. The gold mining region of the country is in the south, which has not yet been affected by last March's military coup or the subsequent conflict. Mali's Mines Ministry is forecasting that industrial gold production will rise from 46 tonnes to 53 tonnes in 2013, despite the ongoing problems.

New Gold  (NYSEMKT: NGD  ) rose 1.7% to $9.26 last week, after the company released its fourth-quarter results last week, revealing that full-year production from the company's four producing mines reached 113,000 ounces, with a cash cost of just $254 per ounce, considerably lower than the industry average. Quarterly cash flow was $106 million, the highest ever such figure for the company, contributing to record net earnings for 2012 of $199 million.

Shares vs. commodities
Shares in commodity companies have outperformed their underlying commodities many times over the last 10 years, thanks to their ability to magnify their gains through successful development of new resources. This free report from the Fool, "10 Steps to Making a Million From the Market" contains some excellent tips on identifying and investing in potential multibagger shares, including resource shares like gold miners. I strongly recommend that you click here and download it now, as it will only be available for a limited time.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2291093, ~/Articles/ArticleHandler.aspx, 9/25/2016 6:32:08 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 11:20 AM
GBS $127.36 Down -0.07 -0.05%
ETF Securities Gol… CAPS Rating: No stars
GLD $127.65 Up +0.08 +0.06%
SPDR Gold Trust CAPS Rating: **
NGD $4.57 Down -0.15 -3.18%
New Gold CAPS Rating: ***
POLY $980.81 Down -78.19 -7.38%
Polymetal Internat… CAPS Rating: No stars
RRS $7904.47 Down -110.53 -1.38%
Randgold Resources… CAPS Rating: No stars