Gold stocks had quite an interesting run throughout 2020. After the pandemic happened, gold stocks rose to heights that have never been seen before. This occurred because of the falling economy and the collapse of the price of the dollar. So as a result, the price of gold reached as high as above $2,000 per ounce. But now it’s 2021 and things have changed for gold stocks. When the first week of January came around, the price of gold went from the normal $1800 per ounce it was around, and nearly reached $1,950 per ounce.
This occurred because of the $900 billion stimulus bill that was passed. This stimulus bill sent checks of $600 to most Americans, and also offered relief to small businesses. Government stimulus devalues the dollar, which in turn helps the price of gold and other precious metals go up. After the first week of January passed, gold stocks then settled back down to the previous price.
$2,000 stimulus checks were denied, and then it hurt the price of gold in turn. But the yellow metal still did not fall below $1,800 per ounce. Some think that vaccinations could cause the economy to recover quicker. But the reality is that it will take a long time to have widespread vaccinations completed, so for now, the price of gold stocks is unaffected. As of January 14th, the price of gold remains around $1,850 per ounce on average. Some think that there is not potential to make a profit with gold stocks at the moment due to the high volatility. This is simply not true, as there are many great gold stocks to watch at the moment that have potential in the market. Let’s take a look at four gold stocks that have been trending in the market throughout recent months.Top Gold Stocks To Watch
- Osisko Gold Royalties Ltd. (NYSE: OR)
- New Gold Inc. (NYSE: NGD)
- Equinox Gold Corp. (NYSE: EQX)
- Golden Star Resources Ltd. (NYSE: GSS)
First up on this list of gold stocks is Osisko Gold Royalties Ltd. This is a gold corporation that will acquire and manage precious metal royalties and streams. Its assets include 5% net smelter return royalties on the Canadian Malartic mine, and many more as well. In total, Osisko’s assets reach 135 royalties, streams, and precious metal offtakes in North America. So how has the company’s performance been throughout 2021?
At the start of 2021, OR stock price received a boost from the increase in price that gold and silver received. OR stock price reached about $13.14 a share on average at its 2021 peak on January 7th. Now as of January 14th, OR stock is sitting around $12.30 a share on average. But this performance is solely based on the prices of precious metals at the moment. The company also announced a preliminary Q4 sales report and provided royalty and stream portfolio updates. The company received 18,800 attributable gold equivalent ounces in the fourth quarter of 2020. The CEO of the company, Sandeep Singh said, “We are extremely pleased with the strength of our business in the fourth quarter and on having exceeded our revised guidance for the year.” Now we await to see what updates are up next for Osisko in the coming weeks and months.New Gold Inc.
Next up on this gold stock list is New Gold Inc. New Gold is a mining business that emphases its development of mineral properties in Mexico and Canada. The company currently searches for gold, silver, and copper deposits at its locations. New Gold actively holds a 100% interest in the Rainy River, Afton, and Cerro San Pedro mines. NGD stock was a big gainer throughout all of 2020. So how has its 2021 performance been now that the first few weeks of the year have gone by?
On the day of January 14th, NGD stock price increased by 2.5%. As of the date, its price is at $2.05 per share. Just one year ago, this gold stock was worth under $1 per share. This shows how the positive direction that gold prices moved last year can drastically help a company increase its market share. It will be interesting to see how New Gold progresses in the future.Equinox Gold Corp.
Next up is Equinox Gold Corp. This company focuses on acquisition, exploration, and development of mineral properties. Equinox will explore for gold, silver, and copper at its mineral deposit locations. Equinox’s primary assets include the Aurizona gold mine that covers 107,023 hectares in Brazil, as well as the Mesquite gold mine and Castle Mountain properties in California. Time to view some recent new that has come from Equinox Gold Corp. in this section of 2020.
EQX stock price increased by nearly 2% on the day of January 14th, 2021. Its current price is about $10.50 a share on average. This is not close to the price of above $11 it experienced in the first week of 2021, but it makes sense as metal prices are not at that point at the moment. The company recently reported record production of 136,400 ounces of gold in just the fourth quarter of 2021. So now we wait to see what is next from this gold company that seemingly has a lot of potential in the market.Golden Star Resources Ltd.
Last but not least on this list is Golden Star Resources Ltd. It is a Canada based gold mining and exploration company. The company operates and owns the Wassa open-pit gold mine located in Tarkwa, Ghana. Additionally, Golden Star owns processing plants and underground mines too. This includes formerly the Bogoso gold mining and processing operation in Prestea, Ghana.
GSS stock price rose 1.1% on the day of January 14th. Its price as of the market close is $3.66 a share on January 14th. Just one year ago this gold stock was at $3.10 per share. So GSS stock price increasing over time has increased the interest of investors who had their eye on the asset. Now we wait to see where the gold stock sector is headed next.