Please ensure Javascript is enabled for purposes of website accessibility

3 Gold Shares Rising Strongly

By Roland Head - Apr 8, 2013 at 9:58AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Aureus Mining, Centamin, and Timmins Gold all outperformed the price of gold last week.

LONDON -- Gold fell steadily last week, before making a partial recovery on Friday. Gold for June delivery ended the week down by 1.4% at $1,574 per ounce.

Of course, the only practical way for most private investors to invest in gold is through exchange-traded funds. The largest gold ETF, the $63 billion SPDR Gold Trust (GLD -0.60%), slipped 1.1% to close at $152.81 on Friday, while London-listed Gold Bullion Securities (LSE: GBS) fell 2.4% to $151.10 last week. So far this year, shareholders of Gold Bullion Securities have seen the value of their holdings fall by 5.8%, while the value of SPDR Gold Trust shares has fallen by 5.7%.

Gold's big movers
Many investors prefer to invest in gold-mining stocks, rather than gold itself, as gold miners are able to use their operational gearing to outperform the price of gold. Let's take a look at three gold stocks that outperformed the yellow metal last week.

Aureus Mining (LSE: AUE) was up 4% to 40.3 pence last week after it announced that its plans to relocate two villages as part of the development of its New Liberty gold mine in Liberia had been approved by the country's Environmental Protection Agency. Aureus has now acquired the land needed for the new village and expects to complete construction of the 325 new dwellings in the third quarter of this year. Aureus Mining's share price has risen almost 10% over the last month.

Centamin (LSE: CEY) climbed 9.5% to 45.9 pence on Friday after non-exec director Mark Bankes purchased 30,000 shares in the company. The £12,876 purchase increased his holding by a third, to 120,000 shares. Centamin remains under pressure to clarify the situation regarding its mining license in Egypt, which was subject to a legal challenge last year, but Bankes' purchase could suggest he believes that a positive outcome is likely.

Timmins Gold (NYSEMKT: TGD) has gained 11.5% to $2.86 over the last month. Timmins' share price dipped almost 10% on Wednesday when its fourth-quarter revenue missed expectations, but both gold production and earnings per share were up by more than 10% from the same period last year, and the firm's share price immediately rose back to its previous level as investors topped up their holdings in the firm, whose main asset is the San Francisco mine in Sonora, in Mexico.

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.


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

SPDR Gold Trust Stock Quote
SPDR Gold Trust
$173.08 (-0.60%) $-1.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.