Finding gold stocks to buy can be difficult especially during times of uncertainty in the market. This month, the list of gold stocks has grown and here’s why:
Global unrest can cause the price of gold to skyrocket. Most gold stocks are seen as safe haven investments. But unlike blue-chip investments, buying gold stocks could be just as volatile as finding penny stocks to buy. The reason for this is that volatility associated with commodities can fluctuate as economic outlooks change. The price of gold and gold stocks for that matter will depend on industry demand and supply. This can be unpredictable. As gold prices change, so will the price of things like gold penny stocks.
Nevertheless, the commodity is in the spotlight this month. Gold stocks are gaining even more attention. With that comes increased excitement on other mining penny stocks and precious metals companies. Here’s a list of 5 gold stocks to watch out for this month:
Why Is Harmony Gold Mining (HMY) A Gold Stock To Watch In July?
Harmony Gold Mining (HMY – Free Report ) is no stranger to the spotlight. Earlier this month we wrong about this gold penny stock after closing out a strong week after the 4th of July. Since late May, HMY stock has been in an uptrend and it hasn’t just been industry momentum driving the market.
Being the third largest gold mining company in South Africa and operating in Papua New Guinea has its benefits. The company has 9 underground mines, one open-pit mine and a number of surface operations in South Africa. Why is Harmony Gold Mining a gold stock to watch this month?
In the company’s last mining update release in May, Harmony showed strong progress. It’s gold production increased by 29% to 33,673kg with underground-recovered grade 6% higher than its previous period in 2018. Assuming gold prices remain constant, this could pose new opportunities for Harmony and gives a reason to keep an eye on the company in July.
Gold Stock Sibanye Gold (SBGL) Continues Higher
Sibanye Gold (SBGL – Free Report) is another gold penny stock to watch this month. SBGL stock has been making an upward move ever since mid-November of 2018. Despite having pulled back briefly in May 2019, shares have continued to move toward its 2019 highs. Platinum has become a boon to SBGL stock in the short run while prices for gold continue to push mining stocks higher.
In a June report from InsiderMonkey, the stock showed to be in 12 hedge fund portfolios at the end of March. Renaissance Technologies holds the largest stake with a reported $16.2 million holding.
Furthermore, the total number of funds holding SBGL stock is at the same level in 2019 as it was in most of 2016 leading up to the Presidential elections. This was another period of uncertainty for the global economy as well.
Gold Penny Stock To Watch, Great Panther Mining Limited (GPL)
One of the lower priced gold stocks to watch this month is Great Panther Mining (GPL – Free Report). The company focuses on precious metals mining and exploration. Right now it operates 3 mines including the Tucano Gold Mine in Brazil and well as silver mines in Mexico.
This week, GPL stock price moved higher after releasing some positive penny stock news. This reveals that the company has approved a positive production decision for its 100% owned Coricancha gold-silver-lead-zinc-copper mine in Perus (that’s a mouthful).
The highlight here is that the decision was based on results from a trial sample. It confirmed key operating assumptions contained in the Preliminary Economic Assessment that were detailed in a May press release. “We are pleased with the results of the BSP and look forward to advancing Coricancha towards commercial production,” stated James Bannantine, President and CEO.
Micro Cap Gold Stock To Watch: Discovery Gold Corporation (DCGD)
Shares of Discover Gold (DCGD – Free Report) have been exploding this month. In fact, based on the last 4 days of trading, this could be the top performing gold stock of July. On July 1, DCGD stock was trading at $0.0028 and on July 5, shares topped out at $0.1293. That’s a move of more than 4,500% in less than one week. With a market cap of less than $25 million and a total outstanding share count of roughly 250 million shares, the structure could have lent a hand to this move.
There has been no clear news that could have acted as a catalyst and July 8 has shown an unsteady trading session. Shares have pulled back to prices below $0.08 so this could have been a short-term momentum-based move. Other than that, there was a filing made at the end of June which shows GRN Funds LLC purchased 139 million shares of common stock. This made the fund a 55.65% owner of the company.
DRDGOLD Limited (DRD) Shines As A Gold Stock To Watch In July
The final gold stock on the list is DRDGOLD Limited (DRD – Free Report). Shares have been on the move since the beginning of June. In fact, since that time, DRD stock has jumped by more than 60% over the last 45 days.
The company is another South African gold producer. DRDGOLD specialized in the recovery of gold from surface tailings. The company announced a small share buyback program just a year before its Phase 2 development of the Far West Gold Recoveries project.
Could this be enough to help propel DRD stock in addition to sector momentum? As Phase 2 could be setting up the company for what’s next, DRD has continued to build relationships with local suppliers. WEG Automation Africa and WEG Transformers Africa have helped with the commissioning of a substation and control room solution at DRDGOLD’s Far West Gold Recoveries project’s Phase 1 tailings site.
“At the tailings facility, the customer required a medium voltage substation, a low voltage substation and a control room. This was accommodated within a double-container structure, which also included a room to house all the free-standing variable speed drives (VSDs) and uninterruptible power supplies (UPSs).”