Gold stocks are having a good year mostly because plenty of investors believe that inflation and tariffs go together. If you take a close look at the price charts, you can see how the metal took off following the January inauguration of Donald Trump and his early February annoucment of new tariffs.
Economists can go back and forth about whether tariffs cause more inflation but these price movements seem to show an inarguable conclusion. It’s probably not a coincidence that the precious metal, long regarded as the most reliable inflation hedge, is more valued now than during the pre-Trump White House days.
5 Gold Stocks Hitting New Highs
First, here’s the SPDR Gold Shares, a fund that reflects gold bullion prices:
From the November, 2024 post-election low of near $230, the price is up by 34%.
Compania de Minas Buenaventura
The Peruvian miner, with a market capitalization of $4.51 billion, traded at $11 per share at the beginning of this year and at the time of this writing goes for $17.88. That’s a 62% gain in value. The stock’s price-earnings ratio is 9.39 at a time when the inflation-adjusted p/e for the S&P 500 is 38.45.
The move up from the late December 2024 low near $9 to the present $16 amounts to an increase in price of 77%. The company is headquartered in Toronto. The market cap is $19.90 billion and the price-earnings ratio is 16.54. Kinross offers investors a dividend of .74%.
The Canadian miner has a market cap of just $617 million and average daily volume of just 731,000 shares. The short float of 10.82% is relatively high for this sector. Should those short be forced to cover, the ensuing rally could be significant. The 50-day moving average crossed above the 200-day moving average in early July.
The South African mining firm has basically tripled in price since the beginning of the year. The market cap is $6.73 billion. In March, RBC Capital Markets upgraded their opinion of the stock from “sector perform” to “outperform.” Sinbanye Stillwater pays a .80% dividend.
The Vancouver-based mine found a post-election November 2024 low of near $7.50 and this week hit $17. That’s more than a double in less than a year. The market cap is $1.90 billion. Average daily volume is just 417,000 shares. The earnings per share figure for the past five years is -8.14% and for the past three years +10.63%.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
No artificial intelligence was used in the writing of this post.
More analysis and commentary at johnnavin.substack.com.