Gold stocks have been in an interesting place in the market recently. The gold industry consists of companies mining and refining gold. This process is done by mining, refining, dealing, and then retail. When there is less gold available the price of gold will rise up. It is vice versa for when there is more gold available. This is why gold stocks have been rather volatile in the market in recent times.
The pandemic had a bad effect on gold stocks. Many gold companies had to stop production because of the pandemic. This made logistics even trickier. Delivery times for gold were delayed making it harder for consumers to receive. Retail sales in the month of July 2020 were very poor. This is because many retail locations are still closed around the world. That means there are fewer people making purchases for gold.
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When positive news is released towards a coronavirus vaccine, gold stocks could potentially rise. This has been an occurrence in the market already. With that being said, there are many great gold stocks to watch in the market. Investors who pay close attention to gold companies’ news are able to make a profit. So let us look at two gold companies that have been trending in the market in August.Top Gold Stocks To Watch In August: Barrick Gold
The first gold stock to watch is Barrick Gold Corporation (GOLD Stock Report) due to its rise during the pandemic. In the world of gold producers, Barrick Gold is in the upper echelon. Barrick Gold is a gold company that was founded in 1983. As of 2020, Barrick Gold is the second largest gold mining company in the world. The company actively operates gold mines in 12 separate countries. In addition to this, Barrick Gold has 71 million ounces and 13.5 billion pounds of proven and probable gold and copper reserves as of the end of 2019.
Before the ongoing pandemic began, GOLD stock was at $21 a share on average. Then, GOLD stock price fell as low as $15.88 a share at one point in March. Since then, GOLD stock has been able to recover quite a bit. As of August 14th, GOLD stock price is at $26.69 a share on average. But the disappointing retail sales have had a bad effect on GOLD stock. On August 10th, GOLD stock price was at $29.88 a share on average at the open. This 10.67% decrease for GOLD stock was not good for investors.
Could this be the right time to invest in GOLD stock? Well, like most stocks at the moment it is volatile. But when a major gold company like this sees a dip, there could be an opportunity to make a profit. If positive reopening or vaccine news is announced GOLD stock price could rise back up, that is why GOLD stock is a potential GOLD stock to buy in August.Top Gold Stocks To Watch In August: IAMGOLD Corporation
The next gold stock to watch is IAMGOLD Corporation (IAG Stock Report) because of its recent dip in share price. IAMGOLD was founded in 1990 and went public in the market in 2005 via the NYSE. The company operates gold mines in Burkina Faso, Canada, and Surname. The Canada based company produced 762,000 ounces of gold in 2019 alone. In 2019, IAMGOLD’s revenue was $1.094 billion USD. The COVID-19 impact had a bad effect on this gold company as well.
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Pre pandemic IAG stock was trading at $3.64 a share on average. Then, IAG stock price dipped to $1.88 a share on average. After that IAG stock began to rise up in the market. As of August 14th, IAG stock price is at $4.15 a share. But IAG stock is down at the moment. IAG stock price went from $4.70 a share on August 10th to the $4.15 price on the 14th. This is because of the recent results that were released from retail companies. This 11% decrease in IAG stock price could mean something for its future.
Some investors may potentially buy IAG stock while it is at a lower number. This is a trend that happens with gold stocks and many other sectors all of the time. Both of these gold stocks have dropped recently, but that opens up room for them to possibly rise. Sometimes all it takes is one positive piece of media towards a coronavirus vaccine to slightly bring up the price of gold stocks. That is why GOLD stock and IAG stock are two gold stocks to watch.