Positive Article21 Feb 2020 22:48
Precious metals producers are always great stocks to load up in uncertain periods. In fact it’s a good idea to always have them in your portfolio. As the tragic coronavirus outbreak has shown, financial markets can plummet in the blink of an eye. So why not buy gold producer Serabi Gold (LSE: SRB)?
Gold prices have bubbled higher again and were recently at $1,570 per ounce. Many brokers believe that a rush to fresh seven-year highs is inevitable on lasting geopolitical and macroeconomic fears and a steady loosening of central bank policy. Maybe February could be the time when bullion bursts through $1,600 per ounce.
Growth at rock-bottom prices
I pledged to look at strong safe-haven growth plays in this piece and Serabi Gold is quite a doozy. City analysts think that earnings here will soar 125% in 2020 thanks to strong metal prices and booming production levels. The Brazil-focused digger smashed through the 40,000-ounce barrier in 2019 to dig 40,101 gold ounces out of the ground. And output of between 45,000 ounces and 46,000 ounces is predicted for this year.
What’s more, Serabi Gold’s a great pick for investors hunting for true value, I feel. A forward P/E ratio of 5.7 times sits well below the widely-regarded bargain benchmark of 10 times. And this low rating could further boost buying interest in the weeks and months ahead.