Newmont Goldcorp Corp. is our top pick for gold investors

Article Excerpt

The price of gold has jumped 27% in the past year. That’s largely due to the ongoing trade war between the two largest economies in the world, the U.S. and China. The dispute threatens to slow global economic growth. But looming concerns over Brexit, lower interest rates and the potential for higher inflation have also added to gold’s appeal and contributed to its recent rise. We feel the best way for conservative investors to invest in gold is by owning shares in major producers like Newmont. The company’s large reserves are mainly in politically stable areas, which cuts its risk. Its recent acquisition of Goldcorp and joint venture with Barrick Gold will also help drive down operating costs. That savings, in addition to pushing up earnings, should give the company more room to reward investors with higher dividends and share buybacks. NEWMONT GOLDCORP CORP. $40 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 819.9 million; Market cap: $32.8 billion; Price-to-sales ratio:…