Junior miners are riding gold’s surge

Article Excerpt

Gold recently jumped to a six-year high after the U.S. Federal Reserve signalled it might reduce interest rates in the coming months because of the slowing global economy. A rate cut would likely lower the U.S. dollar and spur inflation. Typically, both of those factors are needed to significantly boost demand for gold—and further push up gold stock prices. Both of the gold picks below have already risen over the last two months: Yamana is up 49.0% and New Gold is up 137.8%. Even so, each is likely to go higher. YAMANA GOLD $3.59 (Toronto symbol YRI; TSINetwork Rating: Speculative) (416-815-0220; www. yamana.com; Shares outstanding: 948.9 million; Market cap: $3.2 billion; Dividend yield: 0.7%) owns and operates six gold mines, in Canada, Brazil, Chile and Argentina. This includes the Cerro Moro gold/silver mine in Argentina. It started up in mid-2018. Yamana also holds 20.5% of Leagold Mining (symbol LMC on Toronto). It owns gold mines in Mexico and Brazil. In the three months ended March…