They’ll help guard you against any inflation

Article Excerpt

In response to the COVID-19 shutdowns, central banks are increasing the money supply to help maintain liquidity. That could spark a new round of inflation over the next few years. As gold is the traditional hedge against inflation, the likelihood of rising gold prices should benefit Newmont, our top pick of the gold producers. Rising inflation would also boost prices of other commodities, which is why we still like BHP’s prospects. NEWMONT CORP. $62 is our top pick for gold investors. The company (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 819.9 million; Market cap: $50.8 billion; Price-to-sales ratio: 5.1; Dividend yield: 1.6%; TSINetwork Rating: Average; www.newmont.com) took its current form on April 18, 2019, when Newmont Mining acquired Goldcorp Inc. Newmont paid $9.4 billion in shares plus $17 million in cash for the rival gold producer. The merged company is now the world’s largest gold producer with reserves of 95.7 million ounces. Due to COVID-19, Newmont has suspended operations at mines in…