Most investors typically value precious metals as safe havens in times of an economic downturn. Due to the novel coronavirus-led market slowdown, several investors have turned to precious metals in protecting their investments.
For example, gold prices have risen over 27% in the past year compared to 19% growth in the S&P 500 index.
However, these companies tend to different sensitivities based on their businesses. The demand for industrial metals tends to fluctuate with the global economy. Hence, the current recession has slowed down demand for companies focusing on the production of industrial metals.
On the flip side, the value of precious metals is inversely linked to the economy. The evidence is that in the first half of the year, gold and silver prices shot up to multiyear highs.
Let’s look at three of the best precious metals stock to buy:
Precious Metals To Buy: Barrick Gold (GOLD)
Barrick Gold is one of the more established and diversified gold miners. It is primarily involved in the production and sale of precious metals, mainly copper and gold.
Additionally, it is also involved in related activities such as mine development and exploration. The Canada-based company has 16 operating sites in 13 countries. A 12-month return relative to the S&P is over 47% for GOLD stock.
The company is on track to meet its production targets for the year, despite