As we enter the year 2013, the US economy even though showing signs of some recovery is far from a full recovery and the Euro crisis is showing no signs of going away. Amidst of all this the investors are wary of being fully invested in the stock market and gold is increasingly being looked by investors as a safe bet which will hold them through in an uncertain economy.
Gold is considered as a safe haven and one of the safest of asset classes to hold your money in. Gold ended the year 2011 at a price of $1750. The prediction for the year 2012 is that gold will touch 2000. Now there are several avenues open to investors for investing in gold.
Investors can buy physical gold in the form of bars or coins or they can buy into gold via gold ETF’s or stocks.
Here is the list of stocks that will do very well in 2013. This is based on the fact that these stocks were down considerably in the second half of the year 2012. Also, given that fact that gold prices will hold steady in the year 2013, some of the stocks should do well as they will continue to produce gold at low prices and sell at current prices. Not all the gold companies will do well and only the best will be able to generate enough cash flows in the year 2012. From a long term perspective good gold mining companies should be there as part of your portfolio to profit from the long term uptrend in the price of gold.
Types of Gold stocks
Gold stocks can be split into two types of companies, one which are big robust companies which already produce gold in huge quantities and the others which are relatively small and do not produce huge quantities of gold. The second types of companies are known as junior gold stocks. The junior stocks typically will see major upside if they strike new reserves however they lack the consistency and the robustness of their bigger counterparts.
Paramount Gold & Silver (PZG) – It has gold resource in the range of 4.5 million ounces and it is one stock that is set to surge in 2013. It did not catch investor’s fancy in 2012 however the fact is that it has gold production output which definitely belies it’s price.
Kinross Gold ( KGC) – It has 63 million ounces of reserves and it has a forecast of increasing the gold output substantially for the next few years. That would help it make big enough profits even if the prices stay at current levels.
Barrick Gold Corporation (AGX) – One of the biggies in the gold stocks world, this company has a market cap of around $52 billion. This stock has gained around 30% last year and given the output predictions for this stock, it should see substantial increase even in the year 2012.
IAMGOLD Corp. (IAG) – This stock is a Canadian heavyweight and has surged around 70% last year. It should do well in the current year with it’s increased output assuming the same level of gold prices. If the gold prices increase then we can see more upside in this gold stock.