Business & Investment

3 gold stocks to buy with a dip

There are many opinions about strategies for investing in gold and gold stocks. Some argue that precious metals are worthless because they do not generate cash flow. Others argue that it has intrinsic value and can be an important part of the portfolio. However, most investors agree that placing a small gold position in their portfolio is always a good idea.

When the time is good, you can reduce the position, and when the time is bad, you can increase the position. The rule of thumb used by investors is about 5% to 10% of the portfolio.

In today’s environment, investors are in the process of approaching a significant gold position.

First, because of market uncertainty. However, the macroeconomic environment is now very adaptable to assets such as gold. However, gold inventories have fallen in recent months.

Investors are selling off gold because they are positioning themselves towards a pandemic recovery. And while recovery is likely to occur, that does not mean that gold will not recover with it.

Current discounts on gold stocks give long-term investors another opportunity to increase their exposure prior to the next rally in the sector.

So if you want to increase your gold holdings while your stocks are still attractive, here are three of the best stocks to buy right now.

One of the cheapest gold stocks to buy

The first stock to consider is one of the cheapest stocks in this sector. B2Gold Corp (TSX: BTO)(NYSE: BTG). B2Gold is one of the lowest cost gold miners in the world. In short, we have benefited greatly from precious metal gatherings over the last few years.

B2Gold is an ideal investment for investors looking for a safer alternative when investing in the gold sector. Stocks have no net debt and pay a significant amount of cash flow through dividends. The dividend yield is 3.25%, which is a considerable amount for a gold stock.

It’s not as good as most other products, but that doesn’t mean it’s unattractive. Not only is it safer, the stock is at the top with over 35% trading from its 52-week high. Value stock To buy today.

Gold stocks of large stocks

If you can offer a little more growth potential but are still looking for a gold inventory on the safe side, consider it. Barrick Gold Corporation (TSX: ABX)(NYSE: GOLD)..

Barrick is one of the largest gold miners in the world. With assets around the world and its business well diversified, Barrick is a relatively safe investment.

The company has more debt than B2Gold Corp, and B2Gold Corp naturally gives stocks more leverage over the price of gold. This means that when the price of gold is rising, it usually grows faster than B2Gold.

Barrick provides investors with a great balance between safe and profitable investments.So it’s natural that it’s a gold stock Warren Buffett I decided to buy it in the middle of 2020.

High growth gold inventory

The last stock to consider is the one with the most growth potential on the list. Equinox Gold Corp (TSX: EQX).. Equinox is an exciting stock that has grown fairly rapidly since its inception in 2018. The stock is already an intermediate gold producer and is aiming for even more growth in the coming years.

Business growth hasn’t come any further, as gold prices have risen significantly over the last two years. Therefore, investors have some real potential as Equinox plans to increase production to 1 million ounces per year by 2023.

As the price of gold is rising, stocks already offer tremendous leverage. But if the value of gold increases and at the same time the profitability can be doubled by producing more gold, investors can make a big profit.

Conclusion

Gold has always been an important part of a diverse portfolio, but today it is even more important. So if you want to add exposure to precious metals, these are the three gold inventories I recommend.

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A stupid contributor, Daniel da Costa, owns shares in EQX and B2GOLD CORP.

3 gold stocks to buy with a dip

https://www.fool.ca/2021/01/30/3-gold-stocks-to-buy-on-the-dip/ 3 gold stocks to buy with a dip

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