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Wise investors are looking to gold stock symbols with the most potential for growth.
That's because since late December, gold has gone up by about $200 an ounce – nearly 17% through mid-March this year.
In 2013, the yellow metal underwent a staggering 24% decline against the dollar, but sentiment has changed.
"To a large extent I think the bears were exhausted, and most (if not all) sellers had finally sold," Money Morning Resource Specialist Peter Krauth said. "Gold was coming off a technical low and sentiment extreme around the $1190 price range."
There are several factors to consider when it comes the late rise of gold – and understanding them speaks to the benefits of investing in this current bullish gold market.
Gold Stock Symbols That Represent Profitable Gold Stocks in 2014
Royal Gold Inc. USA trades on the Nasdaq under the gold stock symbol RGLD. This $3.3 billion royalty company has more than 200 development, production, and exploration stage royalties.
"Royal Gold boasts $680 million in working capital and $350 million in undrawn credit it can put to work," Krauth said.
According to Krauth, tensions in the Ukraine could cause gold to go on another unprecedented climb, and Royal Gold Inc. stands as one of the best companies to benefit from the geopolitical turmoil.
RGLD stock traded at $65.19 on April 16. It has a 52-week range of $38.63 – $72.90, and a price-to-earnings (P/E) ratio of 98.45. Shares are up over 40% so far in 2014.
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Newmont Mining Corp. trades on the New York Stock Exchange under the gold stock symbol NEM. The company controls around 100 million ounces of gold in attributes and probable gold reserves. Its assets include nearly 29,000 square miles of mines, making the company a force in the precious metals market – in fact, Newmont is the second-largest gold producer in the world.
Newmont is in the process of streamlining its operations in an effort to boost its competitive advantage. In 2013, it sold its investment in Canadian Oil Sands, as well as its Midas Mill Complex in Nevada. Newmont's financial flexibility and its ability to churn out gold through a number of avenues will be a catalyst for Newmont stock.
Since the beginning of February, NEM stock has climbed more than 10% – and it has even more room to grow as the price of gold continues higher in 2014. As of April 16, NEM stock was trading at $23.76 per share, with a 52-week range of $20.78 – 35.44. The company has a market capitalization of $11.96 billion.
Another gold stock symbol to watch is GG on the New York Stock Exchange. This symbol belongs to Goldcorp Inc., a gold producer engaged in the operation, exploration, development, and acquisition of precious metal properties in Canada, the United States, Mexico and Central and South America.
"If you look carefully at the company, you'll see that – over the next three years – production will grow by about 15% annually," Krauth said. "But I expect profits to soar because I expect fixed costs to remain stable, and I'm projecting that gold prices will rise considerably over that time. If that happens, because of the way Goldcorp is structured, most of the increase in the gold price is likely to make it to the bottom line."
Goldcorp traded at $23.87 on April 16, with a 52-week range of $20.54 – 32.15. GG stock is up more than 10% since the start of 2014.
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