Gold Stocks Blast Off As Dollar Drops: 4 Low P/E Miners Hit New Highs
Gold stocks
These five gold mining stocks are soaring to new highs as investors look for alternatives to the dollar dropping and to U. S. government bonds sliding. That Trump's tariff policies are creating uncomfortable uncertainties about the economy is now a given among Wall Street investment firms and their customers.
Buying of precious metals and related equities is the result. The new 52-week highs in so many gold stocks is a reaction to the possibility of much higher prices thanks to tariffs. The chance of a recession is a major factor. This classic inflation-hedge is showing its strength as confidence in the U. S. dollar dissipates.
Anglo Gold Ashanti
Anglogold Ashanti daily price chart, 4 11 25.
The gap up in price today follows yesterday's new high that broke above the early April peak. The 50-day moving average in mid-February crossed above the 200-day moving average, a signal perhaps of the coming strength.
The United Kingdom-based miner with operations around the world has a market capitalization of $21.69 billion. The price earnings ratio is 18.49 at a time when the p/e of the S&P 500 is 32.55. Anglogold Ashanti pays a dividend of 3.99%.
DRD Gold
DRDGOLD daily price chart, 4 11 25.
Today's new high takes out the earlier-in-the-month high and keeps the 50-day moving average trending upward. The 200-day moving average trends higher as well. From the September low of near $7.50 to the present $16 amounts to more than a double for those who bought then and held.
DRDGOLD has a market cap of $1.39 billion. The price-earnings ratio is 14.91. The company has no debt, long-term or otherwise. This year's earnings are up 37.96% and up over the past five years by 150.85%. The South African miner offers investors a 1.90% dividend.
Eldorado Gold
Eldorado Gold daily price chart, 4 11 25.
The gap up in price today takes it to above the previous high from mid-October 2024, a clear sign of strong new interest. Both the 50-day moving average and the 200-day moving average have turned upward. The stock now trades well above both of those measures.
Headquartered in Vancouver, British Columbia, Eldorado Gold has a market cap of $3.96 billion. It trades with a price-earnings ratio of 13.68 and at just 1.01 times book value. The debt-to-equity ratio is .24. The company does not pay a dividend.
Iamgold
IAMGOLD daily price chart, 4 11 25.
Today's 6.25% gain comes on top of yesterday's breakout above the early to mid-February highs. The 50-day moving average has remained above the 200-day moving average for the whole chart period. From the August 2024 low of near $3.40 to the current $7.31 amounts to more than a double.
This Canadian-based miner has a market cap of $4.18 billion. The price-earnings ratio is 5.01 and it trades at 1.25 times book. The debt-to-equity ratio is .35. Eldorado Gold does not pay a dividend.
The U. S. Dollar
US Dollar daily price chart, 4 11 25.
Today's slide takes the dollar to a new low. It's taken out the late September 2024 lows, a former support level for the currency. It looks as if the 50-day moving average may cross below the 200-day moving average in what would amount to a serious trend reversal.
Stats courtesy of FinViz.com. Charts. Courtesy of Stockcharts.com.
More analysis and commentary at johnnavin.substack.com.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
30 minutes ago
- CNBC
This phone is made in the USA, and Trump's name isn't on it
President Donald Trump's family business is taking preorders for a gold-colored smartphone, the T1. Trump Mobile, which launched Tuesday, says the device will be available in September, cost far less than Apple's and Samsung's smartphones — and be made in the United States, aligning with the president's "America First" economic ethos. Industry experts and tech journalists instantly cast doubt on those claims. And if Carlsbad, California-based smartphone maker Purism is any example, it would take much more than two months for Trump Mobile to build an American-made smartphone from scratch. It would also most likely be more expensive than the T1's advertised price of $499. At $2,000, Purism's Liberty Phone is more expensive than an iPhone 16 Pro. It has half the iPhone's memory with roughly twice the thickness. You also can't download many apps on it. According to Todd Weaver, who founded Purism in 2014, it's the only U.S.-made smartphone on the market. But with "kill switches" to turn off its Wi-Fi, camera and microphone, the Liberty Phone is marketed as a secure option because it also carries its own operating system designed by Purism. It took a lot of time and effort to get to that point, Weaver told NBC News. Going from "I would like to make a phone and I would like to make it in the U.S." to actually achieving it took six years, he said. Purism's assembly line consists of just four people screwing together phones by hand — a far cry from the shoulder-to-shoulder line of people and automated machinery often associated with mass production facilities in China. The "Made in the USA electronics" sticker that Purism slaps on the product is a declaration of confidence — since the Federal Trade Commission regulates claims of that sort. Yet even Purism's built-in-America phone needs some foreign help. Ninety percent of its materials come from the United States, Canada or Europe. Among the components made elsewhere: a chassis from China, camera modules from China or South Korea and a Bluetooth module from India. Purism publishes that information online. For materials like a specific crystal necessary for the motherboard to operate, Purism says there are no options for U.S. sourcing, meaning there's no choice but to buy from China. "There just isn't a company yet providing that single crystal," Weaver said. The Trump Organization didn't respond to questions about how Trump Mobile's T1 phone would be made. Another issue looming over the market: Trump's ever-shifting trade policies. He recently threatened a 25% tariff on all smartphone imports, taking aim at manufacturers like Apple and Samsung, which make their phones abroad. "Again, when they build their plant here, there's no tariff, so they're going to be building plants here," he said last month. The percentage of the materials for Purism's phone that come from overseas is small enough that tariffs from the Trump administration wouldn't affect its $2,000 price. But the tariffs would affect a phone Purism does make in China, called the Librem 5. It's priced at $800, but new import duties would take it closer to the Liberty phone's $2,000 level. While tariffs are a "good incentive" for manufacturing in the United States, Weaver said, the administration's on-again, off-again approach makes it tough to plan. "It's terrible," Weaver said. "If you have no idea and you can't predict [the policy], it's very hard for any company, for any business owner. From T-shirts, textiles to high tech, it is very hard to make a long-term business decision when you're in a whipsaw."
Yahoo
31 minutes ago
- Yahoo
Circle Rockets After Stablecoin Bill Clears Senate, Pushes Post-IPO Rally to Over 500%
Circle (NYSE: CRCL) soared 34% on Wednesday, adding another 6% after-hours, as the U.S. Senate passed a landmark bill laying the groundwork for regulated, dollar-backed stablecoins. The move pushed Circle's stock to $199.59 on Wednesday's closing, with a high of $211.87 in after-hours trading. The stock is now up over 540% since its June 5 debut, marking one of the fastest climbs for a crypto stock after opening to the public. The GENIUS Act outlined how U.S. firms can issue and manage fiat-backed stablecoins for payments. It still needs House approval and President Donald Trump's signature, but the Senate vote signals strong bipartisan support for bringing crypto payments into the U.S. regulatory perimeter. 'History is being made,' Circle CEO Jeremy Allaire said on X, calling the bill a breakthrough for American competitiveness. Trump, in a Truth Social post, said the bill would make the U.S. the 'undisputed leader in digital assets.' 'The Senate just passed an incredible Bill that is going to make America the UNDISPUTED Leader in Digital Assets — Nobody will do it better, it is pure GENIUS,' Trump's Truth Social post reads. 'Digital Assets are the future, and our Nation is going to own it.' Circle, the issuer of USDC, currently the world's second-largest stablecoin by circulating value, has long pushed for clear rules around crypto dollars. Wednesday's rally reflects investor confidence that Circle will be the chief beneficiary if the U.S. formally embraces stablecoins as digital cash equivalents. Volume surged to over 60 million shares, nearly 2 times the average. CRCL traded between $148 and $200.89 on the day. Its market cap now sits above $48 billion, dwarfing several legacy payments firms. Bernstein analysts, who initiated coverage on CRCL earlier this week, said the bill would 're-shore stablecoin innovation' and draw activity back from offshore issuers to regulated U.S. players. 'The bill clearly defines stablecoins as payment stablecoins,' said analyst Gautam Chhugani, 'making their legal treatment closer to digital cash—and opening the door to mainstream adoption beyond crypto rails.'
Yahoo
32 minutes ago
- Yahoo
Housing starts plummet to 5-year low. That could be a good thing for home buyers.
The numbers: Construction of new homes fell 9.8% in May, as builders pulled back amid waning demand from home buyers. Housing starts fell to a 1.26 million annual pace from 1.39 million the previous month, the government said. The annual pace refers to how many houses would be built over an entire year if May's rate of construction were to continue. 'I prepaid our mom's rent for a year': My sister is a millionaire and never helps our mother. How do I cut her out of her will? 'I'm at my wit's end': My niece paid off her husband's credit card, but fell behind on her taxes. How can I help her? Israel-Iran clash delivers a fresh shock to investors. History suggests this is the move to make. 20 companies in the S&P 500 whose investors have gained the greatest rewards from stock buybacks I'm 75 and have a reverse mortgage. Should I pay it off with my $200K savings — and live off Social Security instead? The pace of home building is down to the lowest level since May 2020 — during the peak of the COVID-19 pandemic. New-home construction is down 4.6% from the same period a year ago. Building permits, a sign of future construction, also fell 2% from the previous month to a 1.39 million rate. Builders have slowed down the construction of new homes primarily due to a pullback in buyer demand. Rising inventory levels and weak buyer demand have resulted in homes sitting longer on the market. That could be welcome news for buyers struggling with affordability challenges. More builders are cutting prices on new homes to encourage buyers. In June, 37% of home builders cut prices to boost sales, the National Association of Home Builders said. That's the highest share since at least 2022, when the lobbying group began tracking the data. Read more: More builders slash prices as home buyers stay away from the housing market At the same time, 'builders are operating in a very challenging environment and it showed up in the May construction data,' Danielle Hale, chief economist at told MarketWatch. 'With tariffs raising materials costs and immigration policy likely worsening labor shortages, the supply side of the equation is difficult and coupled with an environment where demand for new construction homes is weakening as the number of existing homes for sale grows,' she added. ( is operated by News Corp subsidiary Move Inc.; MarketWatch publisher Dow Jones is also a subsidiary of News Corp.) Read more: Key details: Single-family construction was nearly flat, growing just 0.4% in May from the month before. Multifamily construction, on the other hand, fell sharply by 30.4%. The pace of construction was uneven across the U.S. New-home construction grew in the West by 15.1%, but fell across the rest of the nation. The sharpest fall in new-home construction was in the Northeast, which saw a 40% drop. Permits, which indicate future home-building activity, were also down in May. Permits from builders to construct single-family homes fell by 2.7%, while permits to build multifamily homes rose 1.4%. The negative housing data was 'not entirely surprising,' Odeta Kushi, a deputy economist at First American, wrote on social-media platform X, because builder confidence has been souring. Sentiment among builders has dropped sharply, due in part to weak buyer demand. 'Builders are doing the market equivalent of the 'get me out' trade',' Stephen Stanley, chief economist at Santander U.S. wrote in a note. 'They are slashing new production, while, at the same time, offering increasingly aggressive incentives to sell their inventory.' Read more: Home sellers face an 'absolutely brutal' market that's tilting in buyers' favor Big picture: Home sellers are turning out to be the biggest losers in the current housing market — that includes home builders. Naturally, they're responding by pulling back. Sellers on all fronts are feeling the burn from the lack of sales. The spring home-selling season was a bust. Builders and homeowners who are selling their properties are cutting prices to encourage buyers, which is eating into their profitability. Buyers, on the other hand, are likely to gain power, based on recent trends in housing data. Even though new construction slowed, the number of homes that are being finished is still 'a fair amount,' Hale said. In May, the number of completed housing units grew by 5.4% across the nation, with single-family completions up 8.1%. 'This means that shoppers in the market for a new home will still have options in many markets and are likely to be in a good place to negotiate,' she added. Israel-Iran conflict poses three challenges for stocks that could slam market by up to 20%, warns RBC These defense stocks offer the best growth prospects, as the Israel-Iran conflict fuels new interest in the sector 'I'm 68 and my 401(k) has dwindled to $82,000': My husband committed financial infidelity and has $50,000 in credit-card debt. What now? My husband is in hospice care. Friends say his children are lining up for his money. What can I do? 'He failed in his fiduciary duty': My brother liquidated our mother's 401(k) for her nursing home. He claimed the rest. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
