Gold Investment News 2017: These 2 Stocks Could Soar 46.5% and 63.8%

gold investment newsThe big gold investment news of 2017 has been the strong rebound in gold prices following Q4 2016.

Since the beginning of the year, the price of gold is up 7.7% to $1,239. This is after a 12.8% decline last quarter, with the price bottoming out on Dec. 15 at $1,132.

And Money Morning Resource Specialist Peter Krauth predicts the gold price will soar to $1,400 per ounce by the end of 2017. That's up 13% from the current price.

While this is good news for owners of physical gold, it's even better news for owners of gold stocks. As prices rise 13% this year, gold mining companies will make more money on each ounce of gold they produce and sell.

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That's why we're going to recommend two of the best gold mining stocks to buy in 2017. These two gold stocks could climb as much as 46.5% and 63.8% over the next 12 months.

Here's why our gold stock recommendations will rally in 2017...

2 Positive Pieces of Gold Investment News for 2017

There are several reasons why we're bullish on gold stocks and gold prices in 2017.

The first is the drop in short bets in the gold market. A short bet is when an investor "shorts" a stock or commodity, hoping it will drop in value rather than appreciate. The volume of short positions has been declining this year. That indicates sentiment across the gold market is turning bullish.

This shifting sentiment is clear from the Gold Bugs Short Index (HUISH). It tracks short-selling activity on gold mining companies, particularly ones that don't hedge production based on gold price conditions. So far in 2017, that index is down 15%.

The second piece of bullish gold investment news is the strength of the U.S. dollar.

Yes, gold prices and the dollar typically move in opposite directions. After all, the price of gold fell over 12% in Q4 2016 as the U.S. dollar rose 7.1%.

But this doesn't always hold true. History has shown that the price of gold can soar straight through times of a strong dollar. Just look 40 years into the past for proof...

In the 1970s, we had record-high interest rates that sent inflation soaring. Gold prices should have tanked during this time. Instead, they became 24 times more expensive at the end of the decade than they were at the beginning.

Even though the rate hike of 0.25% this past December strengthened the dollar, the effect will likely wear off. Regardless, gold prices are fundamentally poised for a long-term rally.

More Gold Investment News: 6 Catalysts Set to Trigger Seismic Gains

In fact, we're already in a gold bull market that could continue for the next five years...

Back in September, precious metal analyst Diego Parrilla told Bloomberg that we're closing in on the next booming gold bull market.

Gold bull markets produce average gains of 385% and last roughly 63 months. Even an average bull market could send gold mining stocks skyrocketing 600%, and a strong bull market could deliver gains in excess of 1,000% or more. All of this means there are plenty of profits to go around for investors looking to profit from gold mining stocks.

Here are the two best gold stocks to buy in 2017...

The 2 Best Gold Stocks to Buy for Gains of 46.5% and 63.8%

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The first gold stock to buy is Barrick Gold Corp. (NYSE: ABX).

Barrick is the world's largest gold producer, with mines on five continents and a $24.1 billion market cap. One of Barrick's best attributes is its all-in sustaining cost (AISC). That measures how much it costs the company to mine one ounce of gold. Barrick boasts a low AISC of $760, which is 38.7% below the current gold price of $1,239.

The company also just beat Q4 earnings expectations. On Feb. 15, Barrick announced Q4 earnings per share (EPS) of $0.22, beating consensus estimates of $0.21. Company revenue rose 4% year over year to $2.31 million for the quarter.

As the price of gold continues to rise, Barrick will reap the benefits because of its tightly controlled AISC. According to analysts surveyed by Yahoo Finance, ABX stock has a high-end one-year target of $29.46. That would represent a stellar 46.5% gain from its last closing price of $20.11 per share.

And the second gold stock to buy is Goldcorp Inc. (NYSE: GG).

Goldcorp comes highly recommended by Money Morning Executive Editor Bill Patalon. The company is a leader in gold production worldwide, with 10 major mines in Canada, Mexico, and Central and South America.

GG stock might not have led the pack among mining stocks last year, but Patalon says it's set to break out as an industry leader. The company plans to increase its production of gold by 20% through 2022 - a smart plan considering gold prices are in a long-term bull market.

Goldcorp also has a competitive AISC, which is currently near $850 per ounce. As the company reduces costs and increases output during times of rising gold prices, the value here is going to go up exponentially.

The firm managed to crush earnings expectations even more than Barrick. On Feb. 15, Goldcorp reported Q4 EPS of $0.12. This beat analyst expectations of $0.09 EPS by 33.3%.

The same analysts surveyed by Yahoo Finance give Goldcorp stock a high price target of $28. That's up a stunning 63.8% from its last close of $17.09.

As the gold mining sector benefits the most from rising gold prices, ABX and GG are the best gold stocks to buy in 2017.

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