When you are starting out in online stock trading, remember that investors consider gold as a safe asset. It is considered a great store of wealth. For those looking to own gold, Motley Fool analysts do provide some options that are the top gold stocks presenting diverse owning possibilities.
SPDR Gold Trust
The SPDR Gold Trust ($GLD) ETF owns more than 950 tons of gold, so if you want to own a good deal of gold, this could be what you’re looking for. The ETF charges 0.40% annual expense ratio. But costs are something you would incur anyway if you had direct ownership of bullion. What SPDR Gold Trust offers is exposure to gold for either wealth storage or portfolio diversification. This ETF is a great liquid option which you can scale up or scale down according to your needs. You can also avoid complications that usually arise when you need to mine and sell precious metals.
Barrick Gold ($ABX) is one of the largest players in the gold mining industry. Gold miners provide investors greater exposure to the metal’s price movements, since the earnings expand quickly once the costs of the miner are covered. $ABX has now experienced a year-to-date price gain of roughly 110%. By contrast, the SPDR Gold Trust only had an 18% gain in the same time period.
The all-in sustaining costs of Barrick are at around the 40th percentile on the cost curve, which would translate to around $840 per ounce. This is a measure of the costs incurred in mining an ounce of gold from the ground. The core mines of the company, though, are located at the 15th percentile. Mining from here costs lesser, around $660 per ounce. Keeping the mine core portfolio as a foundation, Barrick Gold looks to trim the overall cost.
Royal Gold ($RGLD) does not own any mines, but sells gold. Royal Gold pays miners up front to be able to buy gold in future at reduced rates. It must be remembered that $RGLD did sign an agreement in late 2015 with Barrick that gave the latter $610 million to acquire the right to purchase gold and silver at 30% of the spot prices. While that discount would reduce to 60% of the spot price after meeting certain delivery targets, Royal Gold can still make a good deal of money.
Investors can look into this stock if they don’t want to take up the risks of a mining operation and still get more leverage than directly owning gold. $RGLD has also kept increasing its dividend consecutively for 15 years, even during the commodities downturn that began in 2011.
With these diverse gold options, you can find the right one depending on what you’re looking for. All three offer various means to take advantage of gold’s price moves. Such in-depth market insight comes with experience as well as a clear view of the market situation. With online stock trading, only the right software can provide that. TradeZero offers this and more, so contact us at +1 954-944-3885, or email us at firstname.lastname@example.org.
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