An asset manager (Urs Gmuer) at the Swiss firm Dolefin, recently predicted that gold could rise to about $6,200 per ounce. A new CNBC article states "Gmuer’s prediction is based on analysis of the last major gold boom of the 1970s, during which gold prices rose from $35 per ounce to $850 per ounce. Gmuer said that in the current bull run, prices would be pushed upwards by a protracted period of global economic difficulty—potentially lasting years—during which investors would continue to search for so-called safehavens. “Gold prices have risen over the last few years, as the macroeconomic picture has become worse. The deterioration of the fundamental situation has now gone even further. “Purchases by investors of gold will be based on fears of systemic risk or banking crashes,” Gmuer said." (Read the full article here).
Wildly bullish calls like this after an already almost parabolic run, can often turn out to be contrarian indicators of a top. The idea that investors will be buying gold based on fears of systemic risk or banking crashes is nothing new, that has been one of the major catalysts for gold in the past 3 years. However, if we do see systemic collapses in the financial system, gold will easily push higher. On the other hand, when people are this confident that an investment will only go much, much higher, it can often be a better time to sell rather than buy. Here are some stocks that could surge if gold were to reach $6,200 per ounce and if silver hit $600:
Newmont Mining Corporation (NEM) is a gold mining and exploration company, located in Colorado. This company has gold exploration and mining operations in United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. This stock is another favorite of gold bulls and it is trading close to the 52 week high.
Here are some key points for NEM:
Current share price: $64.47
The 52 week range is $50.05 to $65.50
Earnings estimates for 2011: $4.65 per share
Earnings estimates for 2012: $4.98 per share
Current share price: $64.47
The 52 week range is $50.05 to $65.50
Earnings estimates for 2011: $4.65 per share
Earnings estimates for 2012: $4.98 per share
Goldcorp (GG) is a gold mining and exploration company, based in Canada. This company has operations in Canada, the United States, Mexico, and Central and South America and produces gold, silver, copper, lead, and zinc. This is one of the leading gold companies worldwide.
Here are some key points for GG:
Current share price: $54.71
The 52 week range is $39.04 to $56.20
Earnings estimates for 2011: $2.12 per share
Earnings estimates for 2012: $2.83 per share
Silver Wheaton Corp. (SLW) is a silver and precious metals company, based in Canada. If silver were to go to $600 per ounce, I can only image how high these shares could go.
Here are some key points for SLW:
Current share price: $40.71
The 52 week range is $17.88 to $47.60
Earnings estimates for 2011: $2.12 per share
Earnings estimates for 2012: $2.27 per share
Annual dividend: 12 cents per share which yields .3%
Endeavour Silver Corp. (EXK) is a silver and precious metals company, based in Canada. This stock was trading around $8 in June and has since rallied about 50%.
Here are some key points for EXK:
Current share price: $12.65
The 52 week range is $3.10 to $12.75
Earnings estimates for 2011: 55 cents per share
Earnings estimates for 2012: 88 cents per share
Annual dividend: None
Coeur d'Alene Mines Corporation (CDE) is a silver and precious metals company based in Idaho. This stock was trading under $24 per share in June and has surged since then. For those who want to bet on silver at $600, this would be a solid pick.
Here are some key points for CDE:
Current share price: $29.15
The 52 week range is $14.54 to $37.59
Earnings estimates for 2011: $2.60 per share
Earnings estimates for 2012: $3.12 per share
Annual dividend: None
Yamana Gold (AUY) is a gold mining and exploration company, located in Canada. This company has gold exploration projects in
Brazil, Chile, Argentina, Mexico, and Colombia. This stock recently hit a new 52 week high.
Here are some key points for GG:
Current share price: $54.71
The 52 week range is $39.04 to $56.20
Earnings estimates for 2011: $2.12 per share
Earnings estimates for 2012: $2.83 per share
Silver Wheaton Corp. (SLW) is a silver and precious metals company, based in Canada. If silver were to go to $600 per ounce, I can only image how high these shares could go.
Here are some key points for SLW:
Current share price: $40.71
The 52 week range is $17.88 to $47.60
Earnings estimates for 2011: $2.12 per share
Earnings estimates for 2012: $2.27 per share
Annual dividend: 12 cents per share which yields .3%
Endeavour Silver Corp. (EXK) is a silver and precious metals company, based in Canada. This stock was trading around $8 in June and has since rallied about 50%.
Here are some key points for EXK:
Current share price: $12.65
The 52 week range is $3.10 to $12.75
Earnings estimates for 2011: 55 cents per share
Earnings estimates for 2012: 88 cents per share
Annual dividend: None
Coeur d'Alene Mines Corporation (CDE) is a silver and precious metals company based in Idaho. This stock was trading under $24 per share in June and has surged since then. For those who want to bet on silver at $600, this would be a solid pick.
Here are some key points for CDE:
Current share price: $29.15
The 52 week range is $14.54 to $37.59
Earnings estimates for 2011: $2.60 per share
Earnings estimates for 2012: $3.12 per share
Annual dividend: None
Yamana Gold (AUY) is a gold mining and exploration company, located in Canada. This company has gold exploration projects in
Brazil, Chile, Argentina, Mexico, and Colombia. This stock recently hit a new 52 week high.
Here are some key points for AUY:
Current share price: $16.83
The 52 week range is $10 to $17
Earnings estimates for 2011: 99 cents per share
Earnings estimates for 2012: $1.14 per share
SPDR Gold Shares (GLD) is an exchange traded fund (ETF) that tracks the price of gold bullion. This ETF is trading near the 52 week high. If gold were to hit $6,200 per ounce, this would trade around $620!
Current share price: $16.83
The 52 week range is $10 to $17
Earnings estimates for 2011: 99 cents per share
Earnings estimates for 2012: $1.14 per share
SPDR Gold Shares (GLD) is an exchange traded fund (ETF) that tracks the price of gold bullion. This ETF is trading near the 52 week high. If gold were to hit $6,200 per ounce, this would trade around $620!
Here are some key points for GLD:
Current share price: $183.24
The 52 week range is $118.71 to $184.82
Earnings estimates for 2011: Not applicable
Earnings estimates for 2012: Not applicable
Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.
Current share price: $183.24
The 52 week range is $118.71 to $184.82
Earnings estimates for 2011: Not applicable
Earnings estimates for 2012: Not applicable
Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
