In case you are worried about the steep valuations surrounding equity markets, it makes sense to look at companies that can diversify your portfolio and build long-term wealth. Diversification is key to creating long-term savings that can beat inflation rates consistently. Keeping this in mind, let’s see why stocks like Barrick Gold (TSX:ABX)(NYSE:GOLD), Kinross Gold (TSX:K)(NYSE:KGC), and HIVE Blockchain (TSXV:HIVE) should be part of your portfolio right now.
Gold has historically been a safe hedge against the stock market and shares of gold mining companies moving in line with the commodity prices of the yellow metal. Barrick Gold is one of the largest gold mining companies in the world that has lost 30% in market value in the last year.
In the second quarter of 2021, it reported revenue of $2.89 billion and adjusted earnings of $0.29 per share. However, Wall Street forecast sales of $3.06 billion in the June quarter for Barrick Gold.
While a few production plants are still not functioning at full capacity due to the ongoing pandemic, investors can expect incremental output in the second half of 2021. Further, Barrick Gold confirmed it remains on track to meet its gold production targets for 2021 and has also raised targets for copper in the last two quarters of the year.
Analysts tracking Barrick Gold stock have a 12-month price target of $28.83, which is 35% above its current trading price.
Another mining stock trading close to its 52-week low is Kinross Gold. A gold miner, Kinross Gold has operations in the U.S., Brazil, Russia, Ghana, Chile, and Mauritania. Its three largest mines are forecast to account for 60% of its production in 2021 and they are also among the company’s lowest-cost mines.
Kinross estimates to produce 2.4 million gold equivalent ounces this year. Its production figure is estimated to rise to 2.7 million in 2022 and 2,9 million in 2023. As the world continues to battle COVID-19, Kinross expects production costs to trend lower in the next year. Currently, Kinross has all-in sustaining costs, or AISC of $1,110 per ounce compared to the price of gold which is over $1,750 right now. While Kinross remains profitable, its bottom line should grow as production costs are lowered.
Investors who are bullish on cryptocurrencies can look to buy HIVE Blockchain. Cryptocurrencies are gaining in popularity due to the possibility of market-thumping returns and the widespread adoption of these digital assets by multiple stakeholders.
However, similar to gold mining companies, the price of HIVE stock is tied to the cryptocurrencies it mines such as Bitcoin and Ethereum. HIVE stock rose from a multi-year low of $0.11 per share in early 2020 to touch a record of $7.25 this February. Its currently trading at $4.5 and should move higher if the bull run in the crypto space continues to sustain.
HIVE mines both bitcoin and Ethereum providing investors exposure to two of the largest cryptocurrencies in the world in terms of market cap.