What makes gold a "safe-haven" asset during uncertain times?

Gold is considered a safe-haven asset because it typically maintains or increases its value during political and economic crises when other investments like stocks might be declining. Unlike currencies, gold can't be printed by governments, which gives it inherent value during inflation or currency devaluation. Historically, gold has preserved wealth through wars, recessions, and market crashes, making it attractive to investors seeking stability when global tensions rise.

What's the difference between gold mining companies and royalty companies?

Gold mining companies directly extract gold from the earth, owning and operating mines with all the associated costs and risks of production. Royalty companies, on the other hand, provide financing to miners in exchange for a percentage of future production or revenue. This business model gives royalty companies exposure to gold prices with less operational risk, fewer direct costs, and often more diversified revenue streams across multiple mining operations.

How do geopolitical events affect gold prices?

Geopolitical events like wars, trade disputes, or political instability create uncertainty in financial markets. When investors feel uncertain, they often move money from riskier assets (like stocks) to perceived safer assets (like gold). This increased demand pushes gold prices higher. Additionally, geopolitical crises can lead to currency weakness, inflation concerns, or supply disruptions, all of which typically support higher gold prices as investors seek protection from these economic threats.

What does "Market Cap" mean for these gold companies?

Market capitalization (Market Cap) is the total value of a company's outstanding shares, calculated by multiplying the current share price by the number of shares. For gold companies, market cap helps investors understand the company's size and relative position in the industry. Larger market cap gold producers (like Newmont) typically offer more stability but potentially slower growth, while smaller market cap companies might offer higher growth potential but with greater risk and volatility.

Why do investors look at "Dividend Yield" for gold stocks?

Dividend yield shows the annual dividend payment as a percentage of the stock price, indicating how much income you might receive from owning the stock. Many established gold producers pay dividends, especially when gold prices are high and their profits increase. For investors, these dividends can provide regular income while also maintaining exposure to potential gold price appreciation, creating a dual benefit of growth potential and current income.

17 handpicked stocks

Golden Haven: Geopolitical Risk

This carefully selected group of stocks features companies positioned to benefit from the gold price surge driven by global uncertainty. Professional analysts have identified these precious metals players as potentially profitable opportunities during times of market volatility and inflation concerns.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 14