As gold is hitting new highs, so are gold stocks such as Kingross Gold Corporation (NYSE: KGC
), Barrick Gold Corporation (NYSE: ABX
), Newmont Mining (NYSE: NEM
), and Yamana Gold (NYSE: AUY
), which is why investors wanting exposure to gold should focus on Long Star Gold Corp (NASDAQ: LSTG
). The rise is gold seems to have been fully priced into all but Long Star Gold Corp, which offers upside potential as a result.
Lone Star Gold Corp. has an aggressive acquisition and exploration approach, which is concentrated on the politically stable and easily accessible areas of North America and Mexico. These regions are also proven producers. As an example, Lone Star's La Candelaria project in northern Mexico could yield more than $22.68 billion in value and it has estimated reserves of 10.3 million ounces of gold and 215.7 million ounces of silver. That is at today's prices. With the weak dollar policies of the Federal Reserve, gold and silver should increase.
This increase has signs of already being accounted for in the share prices of Kingross Gold Corporation, Barrick Gold Corporation, Newmont Mining, and Yamana Gold. While the financial markets have been battered, each is up for the month as investors are fleeing into safe haven assets, which gold has always represented. When the markets settle, which they appear to be doing, these stocks will likely fall.
This is already beginning to happen. While up about 10% for the quarter, Kingross Gold Corporation is down for the month. Its candlestick pattern charts reveal long bodies for sales, indicating intensity in selling. The same holds true for Barrick Gold Corporation: it has a relative strength index rating of 59.26, with 70 threshold for a stock to be considered as overbought and ready for a fall. Even with the recent losses in stock markets, Barrick was still up more than 8% for the week. Both Newmont Mining and Yamana Gold were down more than 1% Friday, a day in which the Dow Jones Industrial Average rose 125 points. Yamana Gold has a relative strength index rating of 69.77.
Lone Star Gold Corp. is now coming before investors with gold increasing in value but without it being priced into its shares. This was fully detailed in an article
. As Warren Buffet said, what the wise man does at the beginning, the fool does at the end. Buying gold stocks that have enjoyed huge gains due to the increase in gold is a foolish move. Buying shares of a new company like Long Star Gold Corp. with tremendous potential is a wise investment choice.