Investing in gold has historically been a wise move for any person with disposable income. The market is highly volatile, but gold has historically done quite well during crashes. Gold’s price goes up and down strongly on short term economic news, but this does not mean it is a bad investment. There are three some of the cheapest gold stocks in which you can invest right now:
- Kirkland Lake Gold (KL)
This stock is one you should watch for. The company is currently debt-free with which is significant in the mining industry. The net income of Kirkland has reached a record high recently, and the future is looking just as bright. The Q2 AISC is at 780$ per ounce, and, more than that, the 2021 target AISC is at 790$-810$ per ounce. As you can notice, these numbers are very low for this industry.
- Franco-Nevada (FNV)
This is one of the safest gold stocks out there, regardless of the future evolution of gold prices. As this is one of the largest companies in the gold mining industry, there is a high chance they are stable enough to face a potential crash of the gold price.
The company has 42 developing mines and 50 producing mines, and each one can generate more and more revenue as it continues to develop. The most notable mines are Glencore, located in Antapaccay, Peru; Lundin Mining which can be found in Candelaria in Chile; and First Quantum from Cobre Panama, Panama.
The dividend of Franco-Nevada had increased for 14 years in a row, and the company’s interests expanded further than just gold. In April this year, the company purchased iron ore royalties from Val in the United States, as well as Labrador Iron Ore in Canada.
Newmont has an AISC of 1035 per ounce, and the production of gold has increasd by 15%. Moreover, the free cash flow has increased by 49%. The dividends of Newmont show a lot of potential for those interested. One share of gold is the equivalent of a 1$ base annual dividend with a price of 1200% per ounce.