April 24, 2020 (MicroSmallCap via Comtex) — Do gold stocks surge when the economy experiences turbulence? For the most part, the answer is yes, though nothing is ever a guarantee. Bank of America may now be predicting gold prices will hit $3,000, but at the start of March, we saw the price of gold fall from around $1,700 per gold ounce to below $1,500 per gold ounce in two weeks.
The same goes for gold stocks. Many are making gains on the market on April 24—mainly large-cap companies, such as Barrick Gold, which has increased +1,103 in one day—but others have seen negatives changes and are still around the $5.00 price mark.
People can be wary of companies priced at $5.00 or lower. People can also be wary of falling stocks in general. But low prices can sometimes present unique opportunities to investors. Do these stocks fall into that category?
4 Gold Stocks with Negative Changes: Coeur Mining, Inc. (NYSE:CDE)
First on the list is one of the gold stocks that has seen negative trends since the start of 2020. Coeur Mining is a US precious metals mining company, and on March 19, figures showed that the gold stock had lost more than 60%.
After trading at $4.50 on April 20, the price of the gold stock dropped to $3.50 on April 23, one day after Coeur Mining released its earnings report. Shares are currently down 5.62% on April 24, trading at $3.44. Obviously, this move occurred after investors learned of the shutdown of its Palmarejo mine, located in Mexico. The country has shut down all non-essential businesses until May 30, and that includes gold mines.
It’s a sting for the company, as gold output at Palmarejo was up almost 40% Y-O-Y. It also accounted for around 37% of its overall gold production in the quarter. But there are still positive takeaways: its three US mines are still operating, and figures in the first quarter weren’t poor. The next big thing regarding the future of CDE stock is whether Mexico will lift the closures as scheduled in May, and how much the closure will impact its Q2 results.
4 Gold Stocks with Negative Changes: Direxion Daily Junior Gold Miners Index Bull 2X Shares (NYSEARCA:JNUG)
Of the gold stocks out there, readers might not be familiar with Direxion Daily Junior Gold Miners Index Bull 2X Shares. But after the share price jumped from $7.10 on April 15 to $7.55 on April 22 and finally, to $85.00 on April 23, many will be now.
Recent announcements only include that JNUG is changing the time frame for shifting ten of its geared ETFs to double from triple leverage. Despite increasing around 16% in one week (as of April 22), JNUG stock dropped Thursday, -1,466 on the morning of April 24.
It’s not all bad news, however. In fact, things are already turning around for JNUG stock. In mid-afternoon trade Friday, shares are up around 1.90% at $81.22.
4 Gold Stocks with Negative Changes: Gold Resource Corporation (NYSEAMERICAN:GORO)
Gold Resource Corporation is among the list of gold stocks that have also seen negative changes. It’s also one that is seeing an impact from Mexico extending its national health emergency until May 30, as this continues the temporary closure of Gold Resources’ Oaxaca Mining Unit operations in Mexico.
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Granted, GORO stock had already been struggling, losing up to 60% of gains, as of March 19. But on the same day, this gold stock traded higher to $2.55, before hitting $4.10 on April 23, which is well within its 52-week range of $2.02 – $6.24. On April 24, shares are down 1.85% at $3.96, which still puts it in the unique penny stock range.
4 Gold Stocks with Negative Changes: Eldorado Gold (NYSE:EGO)
Similar to JNUG stock, Eldorado Gold is among the gold stocks Friday that started the session by seeing negative trends, before turning around in mid-afternoon trade.
In the last four days, EGO stock has moved from trading at $8.70 on April 20, $9.98 on April 23, and now, on April 24, $9.71. The stock opened at $9.64.
The company has been more active this month than the other gold stocks in this article. Kicking off the month by releasing its Q1 2020 preliminary production results, EGO disclosed that gold leached into solution at Kisladag during quarter one was consistent with market expectations. Eldorado also said gold output was higher than the comparative period last year, due to the recommencement of operations on April 1. Most notably, however, is the company’s disclosure that output at Olympias continued to display improvement quarter-over-quarter, as gold produced in quarter one 2020 was the highest in six quarters.
Unlike the gold stocks mentioned above, Eldorado was able to restart operations at Lamaque, as the Quebec government gave the go-ahead for mines in the province to resume activities. The company had previously halted operations because of the coronavirus pandemic.
Featured image: DepositPhotos © belchonock
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