Gold has been on an upward curve for quite some time due to the economic uncertainties unleashed by the coronavirus pandemic. It is the sort of situation in which it could be worthwhile for investors to take a look at some of the well known gold stocks in the market. One of the stocks that could be worth watching at this point is that of metals miner Newmont Corporation (NYSE:NEM).
NEM stock has progressed well in recent times and has managed to handle the coronavirus pandemic induced, and hence, the performance of the Newmont stock is hard to ignore.
Newmont is a well established gold mining company and has been in business since 1921. The stock has been trading since 1940, and hence its reputation is well established. The company has properties in Australia, Africa, South America, and North America. Among the companies listed in the S&P500, Newmont is the only gold producer. Due to the current crisis, many gold companies have cut dividends. However, Newmont did not make such a move and, in fact, announced a 79% hike in dividend payouts. That is a significant announcement and one that should inspire confidence among investors.
Moreover, there is a lot of bullishness with regards to gold among investors, and the reasons are compelling. In addition to that, the Chief Executive Officer of Newmont, Tom Palmer, has stated that gold prices could rise further and hit its all-time high. The huge amounts of money that have been pumped into the markets as part of stimulus packages could lead to a surge in the price of gold. He went on to state that it could eventually see the gold prices going past $2000 an ounce. It should also be noted that Bank of America had earlier provided an 18-month target price of $3000 for an ounce of gold. It is clear that in such a situation, it could be wise for investors to keep an eye on the Newmont stock.