3 Gold Shares Rising Strongly: Patagonia Gold plc, Centamin PLC And SolGold plc

Patagonia Gold plc (LON:PGD), Centamin PLC (LON:CEY) and SolGold plc (LON:SOLG) all outperformed the price of gold last week.

| More on:

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.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The price of gold performed poorly last week, dropping from Tuesday’s high of $1,330 per ounce, to a low of $1,261 per ounce on Friday morning. Gold for immediate delivery ended the week down by 3.3%, at $1,272 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 last week down 3.6% at $122.60, while London-listed Gold Bullion Securities (LSE: GBS) ended the week down 3.2% at $123.05. So far this year, shareholders of Gold Bullion Securities have seen the value of their holdings fall by 23.9%, while the value of SPDR Gold Trust shares has fallen by 24.9%.

Against this difficult backdrop, a number of gold mining shares made solid gains last week:

Patagonia Gold (LSE: PGD) ended the week up by 10.9% at 12.8p. The firm, which is in the process of ramping up production at its Lomada de Leiva gold project in Argentina, has not released any news since its half-yearly report in September, but the firm’s Chairman and Finance Director recently purchased almost £1m worth of shares in the firm, which also benefits from strong investor support through its inclusion in the popular Market Vectors Junior Gold Miners ETF, which owns almost 5% of Patagonia Gold.

Centamin (LSE: CEY) closed up 1.3% to 45.6p on Friday last week, after having touched a high of 47p early on Friday morning. The firm’s gold production was 84,757 ounces during the third quarter, a 39% increase on the same period in 2012, according to figures published last week, although production was down by 9% on the second quarter of 2013. The firm is now confident of exceeding its full-year 2013 guidance of 320,000 ounces, despite likely disruption during the fourth quarter as it begins to commission stage four of its plant expansion programme.

SolGold (LSE: SOLG) gained 5.0% to 8.7p last week after releasing preliminary assay results showing more than 200m of copper-gold mineralisation, at up to 1g/t of gold and 0.5% copper, at the Alpala prospect within the SolGold’s Cascabel Project, in Northern Ecuador.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

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

More on Investing Articles

Black woman using loudspeaker to be heard
Investing Articles

I was right about the Barclays share price! Here’s what I think happens next

Jon Smith explains why he still feels the Barclays share price is undervalued and flags up why updates on its…

Read more »

Investing Articles

Where I’d start investing £8,000 in April 2024

Writer Ben McPoland highlights two areas of the stock market that he would target if he were to start investing…

Read more »

View of Tower Bridge in Autumn
Investing Articles

Ahead of the ISA deadline, here are 3 FTSE 100 stocks I’d consider

Jon Smith notes down some FTSE 100 stocks in sectors ranging from property to retail that he thinks could offer…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

Why I think Rolls-Royce shares will pay a dividend in 2024

Stephen Wright thinks Rolls-Royce shares are about to pay a dividend again. But he isn’t convinced this is something investors…

Read more »

Investing Articles

1 of the best UK shares to consider buying in April

Higher gold prices and a falling share price have put this FTSE 250 stock on Stephen Wright's list of UK…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

The market is wrong about this FTSE 250 stock. I’m buying it in April

Stephen Wright thinks investors should look past a 49% decline in earnings per share and consider investing in a FTSE…

Read more »

Black father and two young daughters dancing at home
Investing Articles

1 FTSE 250 stock I own, and 1 I’d love to buy

Our writer explains why she’s eyeing up this FTSE 250 growth phenomenon, and may buy more shares in this property…

Read more »

View of Tower Bridge in Autumn
Investing Articles

The FTSE 100 is closing in on 8,000 points! Here’s what I’m buying before it’s too late!

As the FTSE 100 keeps gaining momentum, this Fool is on the lookout for bargains. Here's one stock he'd willingly…

Read more »