You are here: Home - Investing - Experienced Investor - News -

Stock of the week: Randgold Resources

Written by:
Ian Forrest, investment research analyst at The Share Centre, picks ‘golden oldie’ Randgold Resources as stock of the week.

The price of gold rose to another year high today, continuing a four month run, which is having a positive impact on African mining group Randgold Resources. Over the years, Randgold has proved to be one of the best performing gold miners around the world and over the medium to longer-term we believe this will continue. For investors who want exposure to the precious metal, this company is our preferred option.

In an uncertain macro-economic and geopolitical environment, investors are keen on exposure to gold and gold miners. Main drivers for increasing gold prices in the near term could come from the renewed stress in the financial system, tensions in the Middle East, emerging market central banks as they attempt to diversify their foreign exchange exposure and increasing demand for gold jewellery, particularly in Asia.

Brexit, the unconventional US president and upcoming elections in Europe will add to the geopolitical uncertainties and to the attractiveness of gold.

The group’s principal operations are in Mali, a country with significant levels of political instability. While the tensions have in the past impacted confidence in the company’s share price, the operations on the ground remained largely unaffected. Interested investors should appreciate that the company has been fairly consistent in increasing production, manufacturing record amounts of gold each quarter.

Randgold has returned to a debt-free status and its net cash position has reached close to $600m after dividend payments. This is a share for investors looking for capital growth who are willing to accept a higher level of risk.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Landlord property purchases slump to nine-year low

Average rents increased by 2.4% across the UK last year but landlord property purchases slipped to a nine-year low.