The Motley Fool

3 Gold Shares Rising Strongly: Randgold Resources Limited, Fresnillo Plc And Highland Gold Mining Ltd

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

The price of gold rebounded strongly last week following Federal Reserve Chairman Bernanke’s comments on further monetary easing. Gold for immediate delivery ended the week up by 5.6%, at $1,292 per ounce.

Of course, the only practical way for most private investors to invest in gold is through exchange-traded funds. The largest gold ETF, the $38bn SPDR Gold Trust (NYSE: GLD.US), ended the week 4.2% higher at $124.13, while London-listed Gold Bullion Securities (LSE: GBS) jumped 5.6% to end the week at $123.40. So far this year, shareholders of Gold Bullion Securities have seen the value of their holdings fall by 23.1%, while the value of SPDR Gold Trust shares has fallen by 23.9%.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

Gold’s big movers

Many gold miners saw their share prices stabilise and rebound last week, and a number of companies managed to outperform the price of gold:

Randgold Resources Limited (LSE: RRS) rose 6.6% to 4,393p last week. Although the firm’s shares remain down by 10% over the last month, Randgold’s rebound outpaced the gain in the gold price and highlights the underlying quality of the firm’s reserves, which have always been valued based on a gold price of $1,000 per ounce. Randgold’s annual gold production is expected to grow to 1.2m ounces by 2015, as its giant Kibali mine ramps up.

Highland Gold Mining (LSE: HGM) climbed 12.6% to 59p last week as the firm’s positive test production update from its Belaya Gora processing plant coincided with a rise in the price of gold. Belaya Gora is expected to produce 30,000 to 35,000 ounces of gold this year, rising to between 74,000 and 110,000 ounces per year over the life of the Novoshirokinskoye mine.

Fresnillo (LSE: FRES) gained 9.9% to 981p last week. The Mexican-based firm may be best known as a silver miner, but it produced 117,500 ounces of gold in the first quarter of this year alone and expected to produce 490,000 attributable ounces of gold in 2013, giving it a significant level of exposure to the price of gold. Fresnillo’s cash costs per ounce for gold production ranged from $481 to $618 per ounce last year, suggesting that the firm is well positioned to cope with a weaker gold price.

Shares vs commodities

Shares in commodity companies have outperformed their underlying commodities many times over the last 10 years, thanks to their ability to magnify their gains through successful development of new resources. This free report from the Fool, Ten Steps To Making A Million From The Market contains some excellent tips on identifying and investing in potential multibagger shares, including resource shares like gold miners. I strongly recommend that you click here and download it now, as it will only be available for a limited time.

> Roland does not own shares in any of the companies mentioned in this article.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.