Just about ready to navigate the sphere of gold mining stocks in 2024? We'll first delve into compelling reasons to consider gold mining stocks, discussing aspects such as the rising gold price, the potential for hedging inflation, the stability in geopolitical scenarios, the intriguing potential of technological innovations, and the benefits of portfolio diversification.
Then, we'll guide you through three of our favorite gold mining stocks for 2024 that offer promising potential and that we belive are ready for the spotlight.
Why Invest in Gold Mining Stocks in 2024?
When you think of investing in 2024, you could be wondering why you should consider gold mining stocks above other investment opportunities. It's a valid question, and we're here to shed some light on just a few compelling reasons.
Gold price above 2000 usd
Reflecting on the gold market trends, 2023 was a notable year as the gold price surpassed the 2000 usd mark. And if you're wondering what 2024 holds, well, experts predict a continuance of this bullish trend. The gold price is anticipated to maintain its robust position above the 2000 usd threshold and could potentially scale new heights, reaching up to an impressive 3000 usd. This economic trajectory provides an enticing landscape for gold mining investment.
When the gold price sees an upward trajectory, it invariably puts both gold explorer companies and producers in a position of advantage. An increasing gold price positively impacts these entities as they enjoy superior profit margins from their mining operations.
Gold explorer companies, with their valuable portfolio of promising potential mining areas, begin to attract greater investment. Similarly, gold producers become more profitable, creating an environment where they can expand their operations or reinvest in their businesses, driving further growth. This positive domino effect of increasing gold prices brings an overall surge in the gold mining sector, making it a worthwhile investment opportunity.
Gold as an inflation Hedge
One of the notable financial concerns looming in 2024 is the potential for increasing inflation, particularly if interest rates are cut. Interest rate cuts can often lead to a spike in inflation. And if inflation starts to climb again, the value of your money can quickly erode. In times like these, diversifying your investment portfolio with assets that typically perform well under inflationary conditions is a wise move. That's where gold and gold mining stocks step in.
Historically, gold has been perceived as an effective inflation hedge. When inflation rates rise, the price of gold often increases substantially, making gold mining stocks another attractive investment. So, as inflation uncertainty swirls in 2024, turning your attention towards gold mining stocks could be a promising strategy to help safeguard your portfolio.
Geopolitical Stability
As you surely know, our world is no stranger to geopolitical uncertainties. As we speak, tensions are rising in regions like Ukraine and Gaza. In such times, when conflicts can have far-reaching ramifications on global economies, owning gold becomes an attractive proposition.
The value of gold often holds steady, and oftentimes even increases, during periods of instability. This is largely attributed to its status as a safe haven asset. Even when stock markets are in freefall or currencies are devalued, gold continues to shine with relative stability. So, amid the unnerving rumblings of war, considering an investment in gold mining stocks can be a strategic defense move for your portfolio.
Portfolio Diversification
An alluring aspect of gold mining stocks is the diversity it adds to your investment portfolio. By investing in gold mining stocks, you are opting for a commodity-based stock, providing a buffer against volatile market conditions and hence, potential stability during market downturns.
Potential for Technological Innovations
Gold mining has evolved beyond its traditional image of pickaxes and canaries. Today, it involves cutting-edge technology like automation and AI. It's becoming greener and more sustainable too. This evolution allows gold mining companies to enhance their efficiency and profitability, making them an enticing prospect for investors.
Our Favourite Gold Mining Stocks for 2024
Investing in gold mining stocks isn't as straightforward as buying gold bullion. There are risks involved, including operational and market risks. Gold mining companies face challenges such as rising energy costs, environmental risks, or potential political instability in certain regions. These factors could impact their profitability and, consequently, their stock performance.
That’s why, despite the gold price potentially being over $2000 usd, smart investment requires careful selection of gold mining stocks. To keep the risks on the lower side, consider companies with strong operational effectiveness, stable political environments, and good growth prospects. Are you ready to dive into our favorite picks for 2024?
Goliath Resources
Symbol: GOT.V Price: 0.89 CAD Market cap: 92 million CAD
Goliath Resources (GOT.V) is a gold explorer company with three exploration properties in Canada. They have been drilling over 65k metres at their flagship project "Golddigger" in in the Golden Triangle of British Columbia during three seasons and had great success with monster hits like:
7.90 metres of 65 g/t AuEq (64.88 g/t Au and 8.03 g/t Ag)
23.00 meters of 21.08 g/t AuEq (18.95 g/t Au and 95.31 g/t Ag)
9.00 meters of 34.03 g/t AuEq (32.55 g/t Au and 65.71 g/t Ag)
From the extensive drilling efforts and impressive metallurgical outcomes, it's evident that the Golddigger project is rapidly advancing towards a Tier-1 gold discovery. They probably already have 5-10 million ounce gold that could get even bigger as existing zones are open and they keep finding new zones.
At 0.89 CAD/share and a market cap of only 92 MCAD the company feels dramatically undervalued.
Founders Metals
Symbol: FDR.V Price: 1.44 CAD Market cap: 78 million CAD
Founders Metals (FDR.V) is a Canadian company that's exploring and advancing the Antino Gold project located in Suriname, South America, within the Guiana Shield which they aquired a 75% stake in last year.
The Antino Gold project is spread over more than 20,000 hectares and has previously produced over half a million ounces of gold. The company initiated a 10 000 m drilling program last summer and has already released a series of excellent assay results including:
15.50 metres of 30.72 g/t gold
10.00 metres of 24.61 g/t gold
12.20 metres of 19.23 g/t gold
After the encouraging drilling results, the company now aims for the possibility of a deposit size between 5 to 10 million ounces at Antino.
Founders is fully funded for a 2024 drill program of up to 30,000 m. At 1.44 CAD/share and a market cap of 78 MCAD we believe this stock is undervalued.
Arras Minerals
Symbol: ARK.V Price: 0.23 CAD Market cap: 15 million CAD
Arras Mineral (ARK.V) is an explorer company that is advancing a portfolio of copper-gold assets in one of the most mineralogically endowed countries in the world: Kazakhstan.
Kazakhstan is quickly becoming a top global location for mining. It's drawing large mining companies thanks to its promising geological makeup, superior infrastructure, and a mining-friendly environment that fosters mineral development.
The company's flagship project the Beskauga Project has a maiden resource estimate of 1.49 Moz inferred gold, 222 Kt inferred copper, 1.75 Moz indicated gold and 333 Kt indicated copper.
2022-2023 drilling program at Beskauga included intercepts as:
973.2 metres of 0.68% CuEq (0.57 g/t Au, 0.33% Cu)
1024 meters of 0.51% CuEq (0.41g/t Au, 0.27% Cu)
1088 metres of 0.50% CuEq (0.41 g/t Au, 0.26% Cu)
Arras is a relatively new company that began trading at 1.40 CAD/share in June 2022. As of yesterday, it closed at 0.23 CAD/share, with a market cap of just 15 MCAD. We think this presents an excellent opportunity, mainly due to the challenging investment climate in the mining sector over the past year or so.
