3 Gold Shares Rising Strongly

LONDON -- After falling on Friday, gold has regained some lost ground this week. However, there has been little change overall, with gold on the December contract rising by just 0.6% to $1,717 over the last five trading days.

Of course, the only practical way for most private investors to invest in gold is through exchange-traded funds. The performance of the $63 billion SPDR Gold Trust ETF  (NYSE: GLD  ) has inched ahead over the last five trading days, gaining 0.2% to $166.43. The London-listed Gold Bullion ETF (LSE: GBS.L  ) has performed in a similar fashion, gaining just 0.1% to $165.92 over the last five days. Both funds are up around 9% so far this year.

Gold's big movers
Many investors prefer to invest in gold-mining stocks, rather than gold itself, as investing in miners offers the potential for leveraged gains on the price of gold. Let's take a look at some of this week's biggest movers.

Investors betting that Centamin  (LSE: CEY.L  ) will recover from its recent share price collapse are doing well so far. The shares have gained another 9% to 73 pence this week, after the company said that the recent court judgment against it did not invalidate the mining concession agreement for its Sukari mine in Egypt, and merely required some missing paperwork to be provided to the court. Centamin's shares remain 24% down on the month.

Harmony Gold Mining  (NYSE: HMY  ) has risen 10% over the last month to $8.71. Harmony is the third-largest gold producer in Africa and its share price has been given a big boost by its latest quarterly results, which were published yesterday. First-quarter net income rose by almost 400% and gold output reached the highest level in 10 quarters, with 321,924 ounces of the yellow metal produced over the last three months. CEO Graham Briggs believes the company is on course to increase production to 1.7 million ounces per year in 2016 from 1.3 million ounces in the current financial year.

Fellow South African gold miner Gold Fields  (NYSE: GFI  ) is also up, rising 7.1% to $13.02 over the last month as the disruption caused by the recent strikes in South Africa abates and production returns to normal. On Tuesday, workers at the KDC East Mine returned to work and all three of Gold Fields' operating mines in South Africa are now back in production.

Identifying growth shares
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Further investment opportunities:

Roland Head does not own any shares mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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  • Report this Comment On November 08, 2012, at 5:27 PM, EGTalbot wrote:

    "the only practical way for most private investors to invest in gold is through exchange-traded funds."

    Really? How about just buying some bullion? It's much easier to do than opening a brokerage account, and you can store an awful lot of gold in a very small space.

    I'm not saying it's always the "best" way, but it's plenty practical.

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10/27/2016 4:00 PM
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