Few things fire up the imagination of wealth better than a gold mine. After all, while money doesn’t grow on trees, we can actually dig it up out of the ground. Our wealth-related metaphors often revolve around gold, with phrases like ‘things as good as gold’ and ‘an asset that’s like a gold mine.’ Indeed, gold stands as the ultimate symbol of riches and prosperity.
While owning a gold mine might be a distant dream for many, investing in the stock of a gold mine presents an entirely feasible opportunity. Mining companies form an important segment of the stock market. They will focus on different resources, some seeking gold, some silver, some extracting base metals like copper or zinc. All can generate profits when managed effectively, and investors can find sound choices throughout the mining sector.
But we’re talking about gold. Barclays, the London-based banking giant, has released a report focusing on the North American mining sector, and particularly on American gold miners. The firm’s 5-star analyst, Matthew Murphy, notes the headwinds – a slow recovery in China, a downward trend in the Eurozone – but adds that he expects US mining firms to do well, supported by continued demand for gold.
“We expect most of our companies to have slightly better results in Q2, even amidst some deterioration of commodity prices. We remain more constructive on gold than copper as economic deceleration continues,” Murphy wrote.
At the bottom line, Murphy has several specific recommendations when it comes to gold mining firms. We’ve delved into the TipRanks database to uncover details on two of them, both sporting ‘Buy’ ratings and boasting double-digit upside potential.
Newmont Mining (NEM)
We’ll start with Newmont Mining, one of the world’s largest producers of gold. The company boasts a $34 billion market cap, and while it also produces silver, copper, lead, and zinc, its main activity is gold mining. Newmont, which is based in the state of Colorado, is active across both North and South America, and also has operations in Australia and the West…