Quite recently in a research analysis report by Casimir capital, was mentioned that it's time to buy gold and was given the forecast of a strong year for the rest of the 2011. Gold prices have increased almost 30% to $1421 per ounce during 2010 rising for the ninth consecutive year. Looking ahead for the rest of the 2011, analysts expect gold prices to breach the $1500 mark and cross the $1600 mark by late 2011. Having said that, rising gold prices will power gold stocks higher and attract more investors attention to the metal mining sector. Following are some of the companies that will definitely benefit from the gold rush.
Great basin Gold (AMEX: GBG), Rubicon Minerals (AMEX: RBY), Brigus Gold (AMEX: BRD), Northgate Minerals (AMEX: NXG) and Richmont Mines (AMEX: RIC) have similar trading ranges and are all under $10.
There is a a strong chance that these small-cap gold companies will outperform midsize companies in the long run because they have lower valuations and are more than likely to grow vastly as their valuation rises. In addition larger gold companies can only find a fraction of the available properties out there as at times they need larger projects to continue their operations and maintain their expectations of analysts. Another way smaller companies have an advantage over the big ones is that they are able to purchase used mills at discount prices.
Out of all the aforementioned gold companies, the one that struck me the most with excitement was Rubicon Minerals (AMEX: RBY). This is a development stage company engaged in the acquisition and exploration of mineral property interest in US and Canada. The company explores for commercially viable metal and gold deposits. Out of all the analysts that are covering the stock more than 60% of them are recommending a buy rating. The analysts' consensus estimates a 70% potential upside over the next couple of months.
In November of 2010, Rubicon minerals has announced the discovery of its 4,000,000 ounce gold resource in the prolific Red Lake mine in Canada. This discovery has resulted in Rubicon now competing with the other worlds biggest gold producers since only 7% of the world's goall deposits contain 3,000,000 ounces or more. There is potential that the company's exploration could yield between 13 million and 16 million ounces which will position Rubicon as one of the top gold companies in US.
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