As economic and geopolitical uncertainties rise, it’s leading investors to rush for safer assets that “store value” better than the depreciating dollar.
On Sunday (June 26), Director of the United States Economic Council, Larry Kudlow, announced another round of $1,200 stimulus checks are on the way for Americans.
In total, the HEALS Act is going to add at least another $1 trillion USD to the economy (and probably more). Add that to the $3 trillion already printed from March to May, and it’s easy to see why the dollar is devaluing.
The euro is devaluing too… Last week, European Union leaders reached an agreement to roll out an unprecedented $2 trillion stimulus package.
The effects of this money printing will likely push interest rates even further into negative territory – which is seen as a boon for gold because any rational income investor would rather own gold yielding 0% than a government bond yielding -1%, for example.
But since gold can’t be printed out of thin air, the value of each ounce generally appreciates as dollars and euros are printed and thus, depreciated. It’s all relative.
So, on Monday morning, spot gold jumped to record levels – trading as high as $1,945 per ounce. That eclipses the previous record high price set in September 2011 of $1,900 per ounce.
With the momentum gold currently has (up 27% YTD compared to 0% for the S&P 500), its price could surge beyond $3,000 by next year.
That’s a 50% increase that will be great for holders of the precious metal itself.
But did you know gold mining stocks tend to double the performance of physical gold?
That’s right.
Here’s my favorite gold mining stock [currently] trading under $10 per share…
Kinross Gold Corp. (NYSE: KGC)
Founded in 1993, Kinross Gold Corp. (NYSE: KGC) is a Toronto-based senior gold producer that operates eight active mines in the United States, Brazil, Ghana, Mauritania, and Russia.
In 2019, the company produced roughly 2.5 million gold equivalent ounces (worth $4.8 billion today). That’s up from 2.4 million in 2018 and I expect another increase in 2020.
Let’s say the company mines 2.6 million ounces in 2020 and the price of gold skyrockets to $3,000 per ounce, as we expect. That would be worth $7.8 billion – an increase of 62.5% in year-over-year revenue.
Historically, Kinross used acquisitions to fuel expansion into new regions and production growth.
In December 2017 for example, Kinross acquired mineral rights to a 709-acre territory in Fairbanks, Alaska that mining experts believe contains 2.1 million ounces of gold.
In fiscal 2018, the company lost $23.6 million. But in 2019, as gold prices started rising again, Kinross turned a $718.6 million profit.
As long as gold continues its positive price momentum, Kinross’ profits should easily double in fiscal 2020.
And KGC stock should rise along with it.
Currently, Kinross is trading for $8.50 per share.
But I think it could reach $20 before the end of 2021. That represents a potential gain of 135%.
Hurry: Tiny $1 gold stock going vertical
By August 31, a critical announcement will reveal the biggest gold mine in America.
Sending the $1 miner that owns it down a path for up to 100-fold gains.
Its real gold windfall has been kept hidden from the public. But that’s about to change for reasons you can see here.
You need to position yourself immediately.
Not only is the announcement coming…
But gold is approaching record prices… and as you'll see, a well-known billionaire who made $4 billion shorting the housing market in 2008 just went all-in on this tiny gold stock that's poised to become the biggest in America.
