With everything going on in the markets (and the world), it’s easy to overlook gold’s resurgence.
In fact, if you closed your eyes to the ongoing COVID-19 pandemic, the markets might trick you into thinking everything’s okay. Halfway into April, North American indexes have climbed significantly on a combination of economic stimulus and optimism.
But in the face of rising coronavirus cases and deaths in the US, analysts and economists alike are expecting more hardships to come. This week’s major bank earnings are a great example, as they signal the first time the impact from the pandemic can be
seen, though they only include the first month of the coronavirus significantly affecting the US.
And in March, gold prices were impacted significantly as well. After initially climbing, gold prices fell hard from near US $1,675/oz to below US $1,500/oz, causing many investors to panic and lose interest.
What they might have missed is the immediate bounce back a week later. Gold quickly spiked above US $1,650/oz, receded into the end of March, and then began a renewed climb. As of this writing on Apr. 14,
prices reached as high as US $1,745/oz.
That’s why gold stocks have begun to climb as well. Take your pick of major, from smaller producers like
Wallbridge Mining Co Ltd. (
TSX:WM) to larger producers
Kirkland Lake Gold Ltd. (
TSX:KL) to
B2Gold Corp. (
TSX:BTO), shares are up over the last week despite productions being halted as a result of the ongoing pandemic.
For small-cap investors interested in exploration plays that take advantage of the resurgent metal, the key has been to look for companies raring to go. Executives and analysts are aware that the pandemic is halting exploration and development plans, and that the timeline for the delay is far from certain.
But just because you can’t act right now, doesn’t mean you can’t prepare and be ready when the time is right. Companies that are setting up for success with prolific resources include
Great Bear Resources Ltd. (
TSX-V:GBR),
Vanstar Mining Resources Inc. (
TSX-V:VSR), and the mining Bullboards have also highlighted
Mineral Mountain Resources Ltd. (
TSX-V:MMV)
FULL DISCLOSURE: Vanstar Mining Resources Inc. is a client of Stockhouse Publishing