Vista Gold (VGZ) Stock: Plenty More Upside Potential Ahead

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Vista Gold Corp (NYSEMKT: VGZ)

Vista Gold has had an incredible time in the market as of yet. The good news is that if you think you’ve missed the opportunity here, you couldn’t be more wrong. At the end of the day, the stock has plenty more room to climb. Today, we’ll talk about why VGZ is headed upward and why there’s plenty more room for the stock to head upward.

Why VGZ Has Had Such A Great Time In The Market Lately

As mentioned above, Vista Gold has had an incredibly strong time in the market as of late, and for good reason. The story surrounds a recent vote out of the UK.

For some time, there have been politicians in the UK that have argued that its relationship with the EU is causing economic pain. As a result, these politicians argued that the best move for the UK would be to leave the EU. However, there are plenty of politicians that argued the opposite.

On the other side of the fence, some politicians argued that leaving the EU would cause more economic pain for the UK. While they didn’t disagree that the relationship is leading to struggles, they warned that leaving the EU wouldn’t be the best way to handle things.

Soon, it was up to the British people. They recently voted to exit the UK. As a result, the UK and the European economies were called into question. This was great for VGZ.

Why The Brexit Was Great For The Stock

To understand why this sent VGZ upward, it’s important that you understand what the company’s product is. As the name of the company insinuates, Vista Gold is a company that is solely focused on gold. They mine, prepare, and sell the precious metal on the open market.

The Brexit was great news for gold. After all, the precious metal is considered to be a safe-haven investment. Therefore, when market or economic conditions are called into question, we can expect to see gains in gold as investors look to the precious metal to keep their money safe. Unfortunately, the Brexit has incredible implications for the economies of the UK and Europe and could lead to global economic hardship. As a result, gold is climbing in value as investors look to keep their assets safe. This is sending VGZ skyward.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Vista Gold. At the end of the day, the company has the right product at the right time. At the moment, global economic conditions are concerning to say the least. No one knows the extent to which the Brexit will lead to economic hardship in the UK, Europe, and around the world. This is leading to incredible market uncertainty and causing investors to look for ways to keep their money safe.

Today’s safe-haven climate is very different than what it was in the past, which also benefits VGZ. The reality is that bonds are no longer a great option due to low interest rates and other stimulus. The Swiss Franc lost its safe-haven status a while ago. So, at the moment, the two strongest safe havens are gold and silver. So, we can expect to see more gains in these commodities moving forward. Naturally, this will send the value of VGZ skyrocketing.

What Do You Think?

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

[Image Courtesy of Pixabay]

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