Hot Gold Stock: Barrick Gold (ABX), Vista Gold (VGZ), Eldorado Gold (EGO)

Barrick Gold Corp. (NYSE: ABX) | Vista Gold Corp. (NYSEMKT: VGZ) | Eldorado Gold Corp (USA) (NYSE: EGO)

The market has been a rough place to be this year. It seems like every time we turn around we’re giving up any chance of gains we were going to see this year. Nonetheless, any time there’s a rough time in the market, we can expect that at least some stocks will be seeing gain. This time around, those stocks are gold stocks. For companies like Barrick Gold, Vista Gold, and Eldorado Gold, the declines in the market overall are actually a good thing. In fact, ABX, VGZ, and EGO have all been experiencing strong gains. Today, we’ll talk about why these stocks are climbing and why these gains are likely to continue for some time.

Why ABX, VGZ, And EGO Are Climbing In Value

As mentioned above, while the market remains incredibly concerning, Barrick Gold, Vista Gold, and Eldorado Gold are doing incredibly well. So, why are these stocks climbing in value while others continue to struggle? The answer is simple.

As the names of all of these companies would suggest, their flagship product is gold. Every one of these companies is focused on mining for, preparing, and selling the precious metal. As a result, when gains in gold are realized, ABX, VGZ, and EGO all see stronger profits from their flagship products. Adversely, when gold prices are down, these companies watch their profits shrink.

Gold Is Gaining Big

Throughout 2016, gold’s price has been skyrocketing, and for good reason. At the end of the day, gold is a safe-haven investment. The commodity was one of the first ever currencies. Not to mention, throughout history, gold has been proven to be the strongest currency ever made. This fact is likely to help ABX, VGZ, and EGO in a big way moving forward.

At the moment, economic conditions are incredibly concerning. Around the world, banks are devaluing their currencies. Not to mention the mess that’s going on in the UK and Europe as a result of the Brexit. The truth is that when conditions like these are happening, investors and consumers use gold as a way to protect their assets. This leads to incredible gains in demand and, ultimately, gains in the price of the precious metal.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Barrick Gold, Vista Gold, and Eldorado Gold alike. The reality is that, given current economic and market conditions, gold is likely to continue climbing in value. As this trend continues, all three of these companies become more profitable. Let’s face it, what do investors like more than profits? Nothing!

With all of that said, it would be foolish to expect to see declines in ABX, VGZ, or EGO. The issues the world’s economy faces are not short-term issues. In fact, I wouldn’t be surprised to see these issues continue for a year or more. As a result, these stocks will only keep climbing.

What Do You Think?

Where do you think ABX, VGZ, and EGO are headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!

[Image Courtesy of Flickr]

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