Saracen Mineral Holdings Limited (ASX: SAR), Regis Resources Ltd (ASX: RRL) and Resolute Mining Limited (ASX: RSG) share prices were trading sharply lower today (more than 4% down) despite the broader Australian share market trending most sideways.
Saracen is one of the larger gold miners listed on the ASX with an annual production of more than 300,000 ounces per year from its Carosue Dam and its Thunderbox operations.
Regis Resources is from Perth, Western Australia, and is focused on gold exploration and production by redeveloping projects in WA and in New South Wales.
Finally, Resolute Mining has more than 30 years of experience as an explorer, developer and operator of gold mines in Australia and Africa and has produced more than eight million ounces of gold.
Why Are ASX Gold Stocks Falling?
Gold is seen as a ‘hedge’ or ‘risk protection’ against the prices of shares and other risky investments. For example, sometimes the price of gold goes UP when the sharemarkets fall or if political tensions are rising. The opposite also tends to be true.
According to goldprice.org, the gold price has stayed mostly flat today but prices have slipped from over $2,280 per ounce back to $2,20 per ounce since the beginning of the month as concerns about the China-USA trade war subside, for now.
While that may not be great news for gold bugs (people who own physical gold bar, or invest in gold shares) it’s important to note that the price of gold in Australian dollars is up from less than $1,700 to its current price around $2,200, representing a gain of around 30% year over year.
Probably the best way to invest in gold without going down to the local mint is via ASX gold ETFs. It’s not something I do with my money. Instead, I prefer to buy shares of growing businesses. But, it’s an option.
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Disclosure: at the time of publishing, Owen does not have a financial interest in any of the companies mentioned.
