Good Gold Stocks To Buy In December 2012

Many thanks to all of you who sent me an email with questions about your stocks. While there was no single company that seemed to be on everyone’s mind, there was a clear trend: Gold.

This week, I’ll cover three different precious metals companies to help show you the challenges and opportunities of the industry. But more importantly, I’m going to give you a clear buy signal for what I think is the very best stock to play the gold surge:

Good Gold Stocks To Buy In December 2012:Royal Gold Inc. (RGLD)

 Royal Gold, Inc., together with its subsidiaries, acquires and operates precious metals royalties. The company owns royalty interests in various production, development, evaluation, and exploration stage projects, which explore for gold, silver, copper, lead, and zinc metals. It holds royalty interests in properties located in the United States, Argentina, Australia, Bolivia, Brazil, Burkina Faso, Canada, Chile, Colombia, the Dominican Republic, Finland, Ghana, Guatemala, Honduras, Mexico, Nicaragua, Peru, the Russia Federation, Spain, and Tunisia. The company was founded in 1981 and is based in Denver, Colorado.

Advisors' Opinion:

• By Vatalyst At 2011-10-15

  Headquartered in Denver, Colorado and traded on the NASDAQ Global Select Market under the symbol “RGLD,” and on the Toronto Stock Exchange under the symbol “RGL.”, Royal Gold, Inc. owns and manages royalties on gold and other precious metal production in some of the world's most prolific gold regions. This stock posted a 15% return this year and more than 90% quarterly earnings growth rate. Royal Gold Inc., has a market capitalization of $2.88 billion and a trailing P/E ratio of 75.7x. RGLD is expected to earn $0.09 per share in 2012.

  As a royalty company, Royal Gold is also primarily an investor, so it painstakingly chooses its portfolio investment while eliminating the operational risks. RGLD's current stock price ($65.4) shows a positive sign as it is within 15% of the 52-week high ($67.29) and is showing good relative strength to the market. Notable strengths are low gearing and positive cash flow from operations even though ownership is mostly external to the company. Analysts refer to the stock as an ‘uncut gem’ due to its small capitalization still under the institutional buying radar, so no surprises when this stock really takes off.

Good Gold Stocks To Buy In December 2012:Goldman Sachs Group Inc. (The) (GS)

 The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and futures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

Advisors' Opinion:

By Louis Navellier At 2011-11-17

Goldman Sachs (NYSE:GS) is known as a bank holding and financial holding company that provides numerous financial services to its clients. GS might be known internationally, but a year-to-date drop of 42% has dragged this bank stock’s name through the mud.

• By John Reese At 2011-10-20

  Shares in Goldman Sachs are well off their lows of the session, having earlier dropped as much as 6.45% to a 31-month low of $84.27. The stock remains firmly in the red, however, down 2.1% at $88.18 as of 11:30 am in New York. Not surprisingly, options on financial stocks and the XLF are some of the most active today on fears that Europe, and potentially the U.S., may see a double-dip recession. Shares in Goldman Sachs Group have been hammered lower in the past few months, but put activity in the November contract suggests the worst is yet to come for shareholders. It looks like one investor initiated a bearish put spread, buying roughly 2,700 puts at the Nov. $80 strike for an average premium of $7.08 each, and selling around the same number of puts at the lower Nov.$60 strike at an average premium of $2.67 apiece. Net premium paid to initiate the spread amounts to $4.41 per contract, thus positioning the investor to profit should Goldman's shares drop 14.3% from the current price of $88.18 to breach the effective breakeven point on the downside at $75.59 at expiration. Maximum potential profits of $15.59 per contract are available on the bearish position in the event that GS shares plummet 32.0% to trade below $60.00 come expiration in November. Continued turmoil overseas could see the selloff in Goldman's shares worsen in months ahead, which may work to the put-spreader's advantage. Meanwhile, the company is scheduled to report third-quarter earnings ahead of the opening bell on October 18.

• By Jeff Cox At 2011-9-10

  Goldman Sachs(GS) has helped lead the charge in GDP downgrades, with a forecast of 1 to 1.5 percent growth.

  But Goldman chief economist Jan Hatzius said in a CNBC appearance on Thursday that he also believes things have improved and the firm is likely to change its outlook.

  "We've been working with a 1 percent number for the third quarter, but it now actually looks like it might come in a little stronger than that," he said.

• By Curtis Hesler At 2011-8-28

  Goldman Sachs' stock has suffered recently from three consecutive quarters of negative earnings growth. The company, however, is the biggest and the best in the investment banking and trading business and has one of the top prime brokerage and managed account businesses in the world. GS is a 5% position for Fairholme, so the shares are likely substantially undervalued on earnings and cash flows. The stock trades for a small premium to a growing book value and their core businesses are not drying up any time soon.

• By Admin At 2011-8-26

   

  Current Price: $168.80 12-month target: $250

  1. Pickup in M&A and IPO activity will launch the rest of Goldman’s business ventures
  2. Lower compensation expenses due to protests.
  3. Goldman’s fixed-income, currencies, and commodities business should soar.
  4. Healthy balance sheet and advantage over its peers due to its premium brand name.
  5. Goldman is a very attractive opportunity right now and it is undervalued compared to what it should be pegged at.

Good Gold Stocks To Buy In December 2012:Northgate Minerals Corporation (NXG)

 Northgate Minerals Corporation, together with its subsidiaries, engages in exploring, developing, processing, and mining gold and copper deposits in Canada and Australia. Its principal producing assets include 100% interests in the Fosterville and Stawell Gold mines in Victoria, Australia; and the Kemess South mine located in north-central British Columbia, Canada. The company was formerly known as Northgate Exploration Limited and changed its name to Northgate Minerals Corporation in May 2004. Northgate Minerals Corporation was founded in 1919 and is headquartered in Toronto, Canada.

Advisors' Opinion:

• By Barker At 2011-10-30

  I'm not the only Fool who perceives compelling value in the shares of this 90-year-old gold company. My colleague Andrew Sullivan made Northgate his inaugural selection within the Fool's Rising Star Portfolio Series. With anticipated production from Young-Davidson beginning in early 2012, and consistent exploration success at multiple properties, I consider this recently stagnant stock among the clearest rising stars in the gold patch.

• By Cutler At 2011-10-20

  Northgate Minerals Ltd Common (AMEX:NXG): This equity had 11,186,665 shares sold short as of Aug 31st, as compared to 12,721,260 on Aug 15th, which represents a change of -1,534,595 shares, or -12.1%. Days to cover for this company is 2 and average daily trading volume is 6,342,426. About the equity: Northgate Minerals Corporation is a gold and copper mining company. The Company has mines in areas of Canada and Australia.

• By Christopher Barker At 2011-9-2

  I've been reminding Fools to consider positioning for Northgate Minerals' golden explosion for months, and patient gold investors continue to await the day when Northgate's powerful prospects are more fully reflected in the shares. Construction of the critical Young-Davidson mine continues right on schedu! le, and first production now stands about two quarters away. That means Northgate is reasonably likely to achieve its 2012 production target of 300,000 ounces, followed by 350,000 ounces in 2013. Meanwhile, Northgate recently drilled "one of the best holes ever intersected on the property" -- featuring 4.31 grams of gold per ton over a very wide 79.6-meter segment -- from a new discovery zone outside of the existing 2.8 million-ounce reserve.

  If Young-Davidson were Northgate's sole asset, these shares would still be undervalued here at about $2.60 per share. With a preliminary assessment looming for the reworked Kemess Underground project, a new drill program at the Awakening Gold project in Nevada, and two operating gold mines in Australia, Northgate figures among the clearest bargains in the gold patch.

Good Gold Stocks To Buy In December 2012:Thompson Creek Metals Company Inc. (TC)

 Thompson Creek Metals Company Inc., through its subsidiaries, engages in mining, milling, processing, and marketing molybdenum products in the United States and Canada. The company?s principal properties include the Thompson Creek Mine and mill in Idaho; a metallurgical roasting facility in Langeloth, Pennsylvania; and a joint venture interest in the Endako Mine, mill, and roasting facility in British Columbia. It also holds interests in development projects comprising the Davidson molybdenum property and the Berg copper-molybdenum-silver property located in northern British Columbia; the Howard?s Pass property, a lead and zinc project situated in the Yukon territory-northwest territories border; and the Maze Lake property, a gold project located in the Kivalliq district of Nunavut. The company produces molybdenum products, primarily molybdic oxide and ferromolybdenum, as well as soluble technical oxide, pure molybdenum tri-oxide, and high purity molybdenum disulfide. As of December 31, 2010, its consolidated recoverable proven and probable ore reserves totaled 462.2 million pounds of contained molybdenum in the Thompson Creek Mine and the Endako Mine. The company was formerly known as Blue Pearl Mining Ltd. and changed its name to Thompson Creek Metals Company Inc. in May 2007. Thompson Creek Metals Company Inc. is based in Denver, Colorado.

Advisors' Opinion:

• By Christopher Barker At 2011-9-2

  My recent survey of bargain-basement stock valuations among gold miners identified Thompson Creek Metals as a glaring opportunity for value investors. The miner sports two world-class molybdenum mines with 534 million pounds of reserves between them, along with an array of attractive development projects in the pipeline. Foremost among those is the Mt. Milligan copper and gold project, where Thompson Creek expects to launch itself into the ranks of intermediate gold producers with production commencing in late 2013.

  With 6 million ounces of gold reserves, accompanied by 2.1 billion pounds of copper, Mt. Milligan will deliver about 262,100 ounces of gold per year for the first six years of a 22-year mine life, averaging 194,500 ounces annually over that entire span. Although 25% of that gold production is already spoken for through a gold stream agreement with Royal Gold (Nasdaq: RGLD  ) , Thompson Creek Metals is sure to enjoy a powerful cash-flow explosion.

Good Gold Stocks To Buy In December 2012:NEW GOLD INC. (NGD)

 New Gold Inc. engages in the acquisition, exploration, extraction, processing, and reclamation of mineral properties. The company primarily explore for gold, silver, and copper deposits. Its operating properties include the Mesquite gold mine in the United States; the Cerro San Pedro gold-silver mine in Mexico; and the Peak gold-copper mine in Australia. The company also has development projects, including the New Afton gold, silver, and copper project in Canada; and a 30% interest in the El Morro copper-gold project in Chile. The company was formerly known as DRC Resources Corporation and changed its name to New Gold Inc. in June 2005. New Gold Inc. was founded in 1980 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• By Vatalyst At 2011-10-15

  New Gold Inc. is listed on the Toronto Stock Exchange, and the NYSE under the symbol NGD. New Gold has a portfolio of global assets in the United States, Mexico, Australia, Canada and Chile as an intermediary gold producer. NGD gained 159% this year. With market capitalization at $4.5 billion, NGD shows a trailing P/E ratio of 25.3x. New Gold has a 30% interest in El Morro copper-gold Project in Chile and is expected to earn $0.21 per share next year.

• By Christopher Barker At 2011-9-2

  This stock has set the gold standard for share price appreciation among gold miners, advancing more than 140% since I introduced Fools to the new face of New Gold back in January 2010. Looking out over the long-term horizon, New Gold has constructed a gorgeous development pipeline to complement its trio of producing gold mines, featuring: a low-risk 30% stake in Goldcorp's El Morro project in Chile, the New Afton copper and gold project in British Columbia (with production scheduled to begin mid-2012), and the recently acquired Blackwater project north of New Afton.

  Although I expect the Blackwater deposit to expand considerably with further exploration, the project's initial indicated gold resource of 1.8 million ounces already leaves New Gold in command of 14.7 million ounces of measured and indicated gold resource. Tossing in copious supplies of by-product metals -- most notably 83.5 million ounces of silver and 3.5 billion pounds of copper -- New Gold is positioned to enjoy consistently low production costs throughout its sustained growth trajectory.

Good Gold Stocks To Buy In December 2012:Claude Resources Inc. (CGR)

 Claude Resources Inc. engages in the acquisition, exploration, and development of precious metal properties, as well as production and marketing of minerals in Canada. It primarily explores for gold in northern Saskatchewan and northwestern Ontario. The company holds interests in the Seabee gold mine located at Laonil Lake, northern Saskatchewan; and the Madsen property that consists of 6 contiguous claim blocks totaling approximately 10,000 acres, located in the Red Lake Mining District of northwestern Ontario. It also holds interest in the Amisk Gold project, which covers an area of 13,800 hectares in the province of Saskatchewan. The company was founded in 1980 and is based in Saskatoon, Canada.

Advisors' Opinion:

• By Christopher Barker At 2011-9-2

  Hardly a johnny-come-lately, Claude Resources initiated small-scale gold production from its flagship Seabee mine in Saskatchewan in 1991. Just last year, Claude added the Santoy 8 mine to that operation to offer a touch of timely growth. Meanwhile, the operation hosts a number of compelling exploration targets like the recently discovered Neptune zone. After 10 of 15 recent drill holes from Neptune featured visible gold, including a nice high-grade intercept of 84.66 g/t over 3.2 meters, prospects are building for Claude to add some additional years to this time-tested operation.

  While I welcome the existing cash flow from Seabee, my investment thesis for Claude Resources centers around a pair of exciting exploration properties: the Amisk joint venture project southeast of Seabee and the Madsen property at Red Lake, Ontario. At Madsen, historical gold production between 1938 and 1976 yielded 2.4 million ounces at an average grade of 9 g/t. To date, Claude has identified an indicated resource of 928,000 ounces at a comparable grade. At Amisk, drill intercepts of eye-catching thickness suggest strong potential for a profitable open pit operation, including an intercept of 2.16 g/t over 241 meters! The deposit's 921,000 indicated gold-equivalent ounces represent only an early stage hint of the deposit's full potential. The stock is a top-10 holding for Sprott Asset Management, and a core holding for this Fool as well.

Good Gold Stocks To Buy In December 2012:Freeport-McMoran Copper & Gold Inc. (FCX)

 Freeport-McMoRan Copper & Gold Inc. engages in the exploration, mining, and production of mineral resources. The company primarily explores for copper, gold, molybdenum, silver, and cobalt. It holds interests in various properties, located in North and South America; the Grasberg minerals district in Indonesia; and the Tenke Fungurume minerals district in the Democratic Republic of Congo. As of December 31, 2010, the company?s consolidated recoverable proven and probable reserves totaled 120.5 billion pounds of copper, 35.5 million ounces of gold, 3.39 billion pounds of molybdenum, 325.0 million ounces of silver, and 0.75 billion pounds of cobalt. The company was founded in 1987 and is headquartered in Phoenix, Arizona.

Advisors' Opinion:

• By Keith At 2011-10-28

  Freeport McMoRan Copper & Gold. Like a lot of basic materials stocks, Freeport MacMoRan took a beating in 2008, falling from more than $100 to $25 recently. Even so, the world's largest copper producer is a play on inflation and the weakening dollar, Resendes says. "As the stimulus package progresses and winds its way into reality, there will be an increased demand for metals and Freeport McMoRan is in a nice spot to satisfy that demand. He adds: "It's not an obvious play in this economy, but shareholders will be rewarded in the long term."

• By Sherry Jim At 2011-10-6

  Freeport McMoRan is a copper, gold and molybdenum mining company. Cramer holds 800 shares of FCX stocks. FCX has a dividend yield of 2.51% and returned -29.50% since the beginning of this year. It has a market cap of $37.77B and a P/E ratio of 6.80. Ken Fisher invested over $400 million in FCX shares.