When you consider some of the most popular investment opportunities available for investors of any level, gold has always represented a resource of positive growth. Regardless of the age or financial stability of any country, the precious metal of gold has helped to raise empires and control financial powers as the primary component of wealth. In the current age of investing it is often easy to overlook gold opportunities since the metal itself is relatively unavailable, however smart investors are seeking new ways to capitalize on this steady resource of financial reliability. This article identifies five areas of opportunity where investors can make smart investments in gold and potentially find profits by 2013. Please use my research as a starting point for your own due diligence.
Yamana Gold Inc (NYSE:AUY) - When you compare many of the most popular gold mining resources available for an individual to invest into, Yamana is by far the most affordable. As it is currently being traded around $15 per share it helps investors who are looking to benefit from gold opportunities and seeking to maximize their share investments. When looking at the various elements impacting mining companies such as Yamana there are many possibilities to feel positive about. Along with the stock currently being traded around $15, the earnings per share are close to $0.83, the price to earnings ratio can be found at 18.96 with a dividend yield of about 1.27%. Yamana Gold has a market capitalization of $11.74 billion with a relatively low debt-equity of 0.06 and a current ratio of 2.60. The most promising aspect of this stock is seen with its growth in the past five years of 24.92%.
Goldcorp Inc (NYSE:GG) - If you are seeking to take advantage of one of the larger gold mining companies available then look no further then Goldcorp. Currently being traded around $44 per share this investment opportunity allows you to spend a little more on a more established mining operation. One of the most appealing aspects that can be found with Goldcorp can be seen with its current target price being evaluated around $65 per share. This marks a tremendous opportunity for growth which is possible as business expenses such as oil decrease and the value of gold ETFs such as SPDR Gold Shares (NYSEARCA:GLD) are expected to increase. Goldcorp is supporting approximate earnings per share of $2.26, a price to earnings ratio of 20.07, a dividend yield of around 1.19%, along with a market capitalization of $36.74 billion and a very low debt-equity of 0.03. The growth over the past five years displays an impressive 29.38% with a promise of continuous growth over the next five years of around 43.60%.
Newmont Mining Corp (NYSE:NEM) - When pursuing opportunities in gold investing it is always important to identify both the pros and cons of a specific stock so that you can determine its risks and rewards. Newmont represents a midsized mining organization having a marketing capitalization of around $29.22 billion. Some of the less attractive features of this stock can be seen with the growth over the next 5 years estimated around 17.77% and the higher debt equity of 0.31 along with the earnings per share of only 4.72. Positive features that can be associated with this stock investment exist with it having a low price to earnings share of $12.56, a high dividend yield around 2.36%, and the most impressive statistic of a target price that should be around $79 rather than the current $57. While the growth of this company may be limited over the next five years, the undervalued stock helps to support a significant opportunity of financial growth for the savvy financial investor.
Market Vectors Gold Miners ETF (NYSEARCA:GDX) - The opportunities of the Vectors seem promising as a result of the possibilities that are available with strong gold prices. Currently being traded around $52 per share, this ETF has a week YTD Return of -16.09%. This can easily be explained by the rising cost of expenses many mining companies must endure and the decrease in gold demand from various markets such as Asia. While this may seem to be a deterrent from investing, there is a silver lining on the horizon. Demand for gold is expected to greatly increase soon as Asian markets begin seeking precious metals again and the costs related to mining gold are expected to decrease as prices such as oil begin to balance and decline. This creates a tremendous opportunity of growth for an ETF that was significantly impacted by these two variables.
Randgold Resources Limited (NASDAQ:GOLD) - Randgold represents one of the more expensive opportunities for investment which a trader can pursue. This stock is currently trading around $107 per share which is very low when you consider the estimated targeted price should be around $124. The current market capitalization of this company is relatively low compared to other mining companies, settling around $10.09 billion but it has great potential for growth. Over the past five years the company has had limited growth of around 8.83%, however over the next 5 years its growth it is expected to increase significantly to around 45.70%. This tremendous opportunity for growth is significant for any investor who is seeking to get in on the ground floor of a gold-related business.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.