The U.S. markets are down significantly today, with the S&P 500 down 22.46 points (1.08%), the NASDAQ down 82.15 points (1.64%), and the Dow down 198.87 points (1.15%), all as about Noon ET. The slump comes as China’s economy, the Fed’s interest rate decision, and declining oil prices all weigh on the markets and investors’ minds.
One sector that has seen major share price jumps though is the gold mining industry, where several stocks have seen increases of 7% and higher thus far today. Gold mining stocks tend to move in a similar fashion to gold prices, which as of noon ET were up 1.80% on the day. The increase is most likely due to investors moving towards safer and less volatile bets like gold and other commodities as they try to form predictions for where the markets are headed.
Below are 4 gold mining stocks that have seen major jumps today. The industry’s members have not seen great success on Wall Street in the last year, with the industry’s stocks having an average 52-week price change of around -50%. The industry is ranked in the bottom 15% of industries by Zacks at the moment, but this jump is probably something investors should take note of, especially if gold prices and commodity interest levels continue to rise.
Gold Resource Corporation
Gold Resource Corporation (GORO) is a mining company focused on production and pursuing development of select, high grade gold and silver projects that feature low operation costs and produce high returns on capital. The company currently trades far below its 52-week high of $6.35, but its stock was up 9.62% to $2.62 a little after 12 PM ET.
AngloGold Limited
AngloGold Limited (AU) is the largest gold producer at 7 million ounces a year, with reserves of 126 million ounces. The company has operations in six countries on three continents, as well as exploration activities in an additional 10 countries. AU has seen a negative 52-week price change of 60.80% and has a stock price that is less than half of its 52 week high. Today, however, AU’s stock was up 12.05% shortly after mid day ET.
Timmins Gold Corporation
Timmins Gold Corp. (TGD) is a gold mining and exploration company with a focus on Mexico. A bit smaller than many of its peers with a market cap of $79.80 million, the company has been no stranger to stock price decline seen in the industry. TGD has a negative 52-week price change of 84.34%, and a price change of -19.78% in just the past 4 weeks. Today though the company’s stock saw a major increase, up 12.07% as of about mid day.
Gold Fields Limited
Gold Fields Limited (GFI) is one of the world’s largest unhedged gold producers, operating mines in South Africa, Ghana, and Australia. The company has seen a negative 52-week price change of 32.36%, which is actually below the average in the industry. Today the company’s stock saw a major jump though, up 12.46% as of about 12:30 PM ET.
Bottom Line
With gold prices declining in the recent past the gold mining industry has clearly suffered greatly with major share price declines and many of the stocks in the industry trading far below their 52 week highs. There could be more positive times on the horizon though with the volatility and widely considered bleak outlook of the world market causing investors to look for safer investment options in commodities.
Investors should be, and probably already have been, staying up to date on economic and world market news to have the best chance of success in their investments. Some attention though may want to keep an eye on gold and commodity prices in the coming months, as well as on companies which may benefit from commodity price increases, such as the gold mining industry.
Though the industry, and many stocks in it, have low ranks from Zacks at the moment, those rankings could be on the move if gold prices see an increase and the gold mining industry becomes a better option for investment moving forward.
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ANGLOGOLD LTD (AU): Free Stock Analysis Report
TIMMINS GOLD (TGD): Free Stock Analysis Report
GOLD RESOURCE (GORO): Free Stock Analysis Report
GOLD FIELDS-ADR (GFI): Free Stock Analysis Report
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