How can I find the best gold investment companies ?
Well, first lets chat about where we've been. The world economy during the unprecedented times of a global pandemic has taken a steep decline. The pandemic has ravaged many companies pushing the stock market to the edge. The situation is made worse as international banks bring down interest rates to zero, and many governments make fiscal policy changes to address economic issues. All these factors combined with the current environment are least conducive to any yield.
With that said, it is no surprise that many investors want to play it safe, withdraw their existing investments, and shift to less risky assets. As such, gold has reclaimed its position as a strategic asset and put the spotlight on gold investment companies.
For centuries, gold has been a valuable asset that is deeply interwoven with many cultures across the globe. In countries like China, holding gold has been the traditional way of savings, while in India, gold jewelry is an integral part of marriages and religious ceremonies. For some, it has been a way to perpetuate their wealth, culture, and tradition.
Gold continues to be a highly strategic asset and more so in the current scenario. It is highly liquid with no liabilities and has retained its value throughout history. As a result, it serves as an excellent barrier against both deflation and inflation.
How to invest in gold mining companies
There are several ways to invest in gold. Purchasing gold bullions is a safe way to go if you want protection from a system-wide crisis as there are always risks associated with other forms of investments.
Moreover, they are highly liquid and easily accessible through reputable dealers. The same is the case with buying gold jewelry. Just make sure you strictly check the purity of gold before you make the purchase. However, holding physical gold requires proper safekeeping, which is something you have to work out personally and that will vary from person to person or entity to entity.
Buying gold funds is another way of investing in gold that provides a low-cost entry into the market and is highly liquid at the same time. You can buy or sell the Exchange Traded Funds (ETFs) just like any other stocks, but prices can fall or rise faster than the gold price. Hence, ETFs provide a higher potential for appreciation than bullions but are riskier as well.
You can also look to gold investment companies. By buying shares in gold mining companies, you can invest in gold without laying your hands on physical gold. However, the returns will depend on how well the company you choose performs and generates income.
Top Gold Investment Companies
At the time of the development of this article these are top gold investment companies to consider. Let’s look through the latest gold investment companies ratings and help provide a more informed perspective as you consider the content contained herein.
Kirkland Lake Gold
Kirkland Lake Gold is one of the few companies that opened the year on the upswing. With an AISC guidance of $846 per ounce against the management’s 1000 and a record number of tonnes in gold production in the first quarter, Kirkland has shot up in its value and appeal to investors. The company expects to lower its guidance further and has plans to ramp up its exploration plans in all three mines. As a result, it is one of the top gold investment companies most recommended by experts.
As a royalty company that streamlines gold, Franco Nevada has the upper hand in low-gold price situations. By offering upfront funding to gold miners, they make these companies buy gold at predetermined prices. The result is that over the last 14 years, it has consistently been increasing dividends and is expecting 25% growth over the next five years. Franco Nevada is a debt-free company and one of the safest gold mining companies to invest in.
When looking for gold investment companies to invest in, the company's cash flow plays a significant role. Cash flow determines the growth and success of any gold company, and Newmont generated a whopping $3.6 billion of free cash flow in 2020. Even when gold prices go down, the company has vast potential for cash flow, resulting in better dividends. Newmont currently has one of the best dividend policies offering $1 per share at the price of $1200 an ounce of gold. It is among the good gold companies to invest in 2021.
One of the largest gold mining companies in the world, Barrick Gold slumped in 2020 but has seen significant results in the first quarter of 2021. Apart from operating five of the top ten biggest gold mines in the world, the company also produces copper on a large scale. And copper prices are incredibly high due to soaring demand. With zero net debt opening and a projected 3.4 % yield, Barrick Gold should be on your top list of the gold mining companies to invest in.
SPDR Gold Trust
The SPDR Gold Trust is one of the many ETFs that allow you a low-cost exposure to gold. The trust’s custodian holds gold bullions in bars of 400 ounces in a vault in London. With a total net asset of $62.4 billion as of June 2020, the GLD had a return of 14% approx. Investing in ETFs is much easier as shares in the GLD are easily accessible. It is also an ideal investment for portfolio diversification as ETFs are less volatile. However, you'll want to keep in mind that the IRS deems GLD collectible, and you could end up losing from the high tax rate on profits during a long-term investment.
Thor Explorations Limited
A Canadian exploration company, Thor Explorations ltd has taken on a rather ambitious project called the Segilola Gold Project. With Africa being the newest destination for investments owing to its vast natural resources and fast-growing economy. Among all the gold investment companies this one is another good option. The Segilola Gold Project is the most advanced gold project in Nigeria, with an estimated reserve of 517,800 ounces of gold. Therefore, the prospects are high if you are looking for the best gold companies to invest in Nigeria.
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