If you’re looking to recession-proof your portfolio, only a few options can really make it solid. One of those options? Gold.
Over the next two years, analysts are predicting that while gold may not grow all that much, it likely won’t sink either. In fact, even if the entire continent of North America hits a hard recession, that doesn’t mean the entire world will stop buying gold. China, for example, is a huge purchaser of the product and this is likely to continue.
So where should you be putting your dollars ahead of a possible recession? If it’s my money, I’d choose Barrick Gold Corporation (TSX:ABX)(NYSE:GOLD), Goldcorp Inc. (TSX:G)(NYSE:GG) and Lundin Mining Corporation (TSX:LUN).
There was recently some pretty awesome news for this gold company. Deutsche Bank‘s analyst Chris Terry recently pushed the company out of the “hold” zone and into a “buy.” And honestly, there are a lot of great reasons for it.
Terry attributes the change to the cost-cutting, money-saving, and divesting of assets initiatives the company has taken recently. This all points to a financially stable and responsible company, with an opportunity for investors to take part in a great opportunity.
In 2018, the big news was that Barrick had acquired Randgold and its large portfolio of mines. Just over 10 of the mines produce more than 200,000 ounces, or more of gold per year, which is as much as most mid-tier mines make during their entire operation.
Even more recent was Barrick’s joint venture with Newmont mining for the miner’s Nevada assets. This will also add a lot of value without disrupting Barrick’s balance sheet.
In the next 12 months, analysts expect shares to rise from where they are now at about $18.20 at the time of writing to potentially $30 per share! That’s an increase of almost 65%!