Of our 2015 stock picks, gold investments have jumped ahead to be among our top performers right now.
Goldcorp Inc. (NYSE: GG) stock in 2015 has gained 22.5% as of yesterday's close (Thursday) to $22.69. That's a 33% gain since it bottomed out last month. Goldcorp is a precious metal mining company involved in operation, exploration, development, and acquisition. It has properties in Canada, the United States, Mexico, and Central and South America.
Since Goldcorp is so heavily tied to gold prices, which have struggled through most of 2014, Goldcorp stock predictably took a beating last year.
"The past couple of years have seen considerable pressure on most gold equities, thanks in large part to a declining, then consolidating, gold price," Money Morning Resource Specialist Peter Krauth said. "That became a major challenge to gold miners as they've tried to grow production despite falling gold grades."
But GG's long-term potential remained. In November it was one of Money Morning's "unloved" stocks to buy, as a share-price dip gave investors an attractive entry point.
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And gold prices have been surging since the start of the year. The spot price of gold at yesterday's close was $1,262.60 an ounce. That's a 7% gain for 2015.
"Goldcorp is a company that I like a lot. It's well run, innovative, and forward thinking. And there's lots of upside for investors," Krauth said.
The surge in gold prices has been a boon to all types of gold investments. Typically, when gold prices rise, gold mining stocks realize larger gains than that of the actual metal itself.
Gold miners like Goldcorp are getting the biggest lift. The Market Vectors Gold Miners ETF (NYSE Arca: GDX) is up about 17% for 2015. This exchange-traded fund doesn't track gold, but rather, the New York Stock Exchange's Arca Gold Miners Index (GDM).
Of Money Morning's top stock picks of 2015 – a collection of more than 100 recommendations – six of the top 10 biggest movers are precious metal investments. Check out our top stock picks in the chart below: