Gold miners’ leveraged performance

Gold miners are usually a leveraged play on gold prices. Even in 2018, as gold prices (GLD) fell 1.9%, the VanEck Vectors Gold Miners ETF (GDX) amplified that loss by falling 9.3%.

The price action in leveraged gold ETFs, such as the Direxion Daily Junior Gold Miners Bull 3X ETF (JNUG) and the Direxion Daily Gold Miners Bull 3X ETF (NUGT), has been more dramatic. JNUG and NUGT have seen losses of 48% and 45%, respectively.

Which Five Gold Stocks Are Analysts Loving So Far in 2019?

Company-specific factors

In addition to gold’s price movements, gold miners are also affected by company-specific factors. In 2018 particularly, several company-specific issues affected miners’ performances.

Barrick Gold (GOLD) has been affected by issues at its mines. It announced its merger with Randgold Resources in September, leading to a surge in its stock price. Kinross Gold (KGC) and Eldorado Gold (EGO) came under stress due to mining code changes and government interference in the geographies in which they operate.

Series overview

In this series, we’ll see which top five gold miners Wall Street analysts like based on their “buy” recommendations and see what their stock price catalysts could be going forward.

The chart above shows the top five gold mining companies based on analysts’ recommendations. In the next article, we’ll look at analysts’ ratings for Wheaton Precious Metals (WPM), the most loved precious metals mining company.

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