Gold price has surged in the past few weeks as demand for safe havens rose. It ended last week at $1,988, which was slightly below the year-to-date high of $2,072. It has jumped by over 18% from its lowest level in 2021.
There is a likelihood that gold prices will keep rising as more central banks increase their purchases in a bid to de-dollarize. After seeing western governments lock Russian central bank assets, many countries like Turkey and China are set to increase their gold holdings. If this happens, several gold stocks are set to benefit.
Newmont (NYSE: NEM) is a leading gold mining company valued at over $60 billion. The company became the biggest gold mining firm after acquiring Goldcorp in a deal that was valued at over $10 billion. It has operations in Africa, Australia, North America, and South America.
Newmont has been in a strong growth path helped by the rising gold prices. For example, it had revenue of over $9 billion in 2019. It accelerated this growth to $11 billion in 2020 and $12 billion in 2021.
Therefore, as gold prices jump, there is a likelihood that Newmont will benefit. Its stock has jumped to an all-time high of $76 and there is more room to grow.
Barrick Gold (NYSE: GOLD) is a leading gold mining company valued at over $43 billion. The company has been in a strong growth over the years. It has grown rapidly organically and through acquisitions. For example, it acquired Acacia Mining and Randgold.
Barrick Gold has operations in a number of countries globally. It mines in countries like Tanzania, Canada, the United States, Mali, and Argentina. Unlike Newmont, Barrick Gold also makes money from copper, a metal whose price has risen sharply in the past few years.
It had revenue of over $11 billion in 2021 and a profit of over $2 billion. The Barrick Gold stock price will likely keep rising as gold prices surge.
Wheaton Precious Metals
Wheaton Precious Metals (NYSE: WPM) is a unique company that makes money when gold prices rise. The company has contracts with gold mining companies that sees it buy the metal at a pre-agreed price. The firm has deals in Salobo, Antamina, and Rosemont among other places. Unlike the other companies, Wheaton has few risks and does not have to deal with many employees.
Wheaton has been in a strong growth path in the past few years. Its revenue has risen to over $1.2 billion while its annual profit has risen to over $600 million.
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