Longtime Junkies know how I feel about gold as a safe haven in times of market turbulence.
Last week was a perfect reminder that today’s stock market today is still fragile, despite recently setting new all-time highs.
There’s about $5 trillion worth of evidence that the new highs were artificially created by the U.S. Federal Reserve pumping all that money into the system (combined with lowering interest rates to zero).
But not every business is getting the same kind of relief. While most tech stocks have excelled since their products and services exists online, many retail stores, restaurants, airlines, cruise lines, etc. are still suffering due to shutdowns caused by the pandemic.
Many of these companies are never going to recover…
But gold stocks are thriving right now. And I expect they will continue outperforming over the next 5 to 10 years (at least).
One of the best ways to gain exposure to the precious metal is by purchasing stocks of companies engaged in exploration and mining.
Gold stocks, as represented by the VanEck Vectors Gold Miners ETF (GDX), have dramatically outperformed the broader market as gold prices have risen.
Over the last 12 months, gold stocks have provided investors with a total return of 43.5%… compared to just 15% for the S&P 500. That’s nearly three times the outperformance.
That’s why I went searching for the top 3 gold value stocks to buy now.
These are the gold stocks with the lowest 12-month trailing price-to-earnings (P/E) ratios.
Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
Here they are…
Jaguar Mining Inc. (OTCMKTS: JAGGD)
Jaguar is a Canada-based mining company that explores, develops, and operates gold mineral properties in Brazil.
Its principal operating assets are located in the Iron Quadrangle, a prolific greenstone belt in the state of Minas Gerais.
They include the Turmalina Gold Mine Complex and Caete Gold Mine Complex (Pilar and Roca Grande mines, and Caete Plant) which combined, produce more than 95,000 ounces of gold annually.
The company also owns the Paciencia Gold Mine Complex.
Jaguar reported revenue growth of 77.8% for Q2 2020, which ended June 30, 2020.
The company also posted $19.2 million in net income in Q2. That’s a dramatic swing from a $2.1 million loss in the same quarter a year earlier.
And now, with 9.4 12-month trailing P/E ratio, Jaguar Mining is the cheapest gold value stock on the market.
Alacer Gold Corp. (OTCMKTS: ALIAF)
Alacer Gold is a gold producer engaged in the mining, development, and exploration of mineral deposits in Turkey.
The company announced in mid-July that its proposed at-market merger of equals with SSR Mining Inc. (SSRM.TO) was approved by the Supreme Court of Yukon – a Canadian territory.
Alacer is focused on two parts of exploration: the Copler District and Turkey Regional.
Geographically, it generates maximum revenue from the Turkey business unit.
After generating a massive net income increase of 670% last year, the stock now has 12-month trailing P/E ratio of 11.2.
And with the price of gold rising, that ratio should easily improve as the business is able to sell its gold for an even greater profit.
For the meantime, however, Alacer’s current 11.2 P/E ratio makes it the second-best gold value stock to own now.
Barrick Gold Corp. (NYSE: GOLD)
Based in Toronto, Barrick Gold is the world's second largest gold producer.
Barrick Gold has gold and copper mining operations in 13 countries located in North America, South America, Australia, and Africa.
In fiscal 2019, the firm produced nearly 5.5 million attributable ounces of gold and more than 430 million pounds of copper.
The company went on to profit nearly $4 billion in 2019 – a $5.5 billion increase from 2018.
That staggering growth makes Barrick worth a total of $51.5 billion today.
It’s established. It’s well-known. And it’s the third best gold value stock now that it’s trading at a 12-month trailing P/E ratio of 11.4.
But since Barrick is already so large, the chances the company doubles from here are slim.
Fortunately, there’s another tiny gold mining stock you can buy for as little as $1 now. And it’s on a path to 100X investors’ money…
This 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.