3 Gold Shares Rising Strongly

Published in Investing on 8 November 2012

Gold Fields (NYSE: GFI), Centamin (LSE: CEY) and Harmony Gold Mining (NYSE: HMY) are all on the move this week.

After falling on Friday, gold has regained some lost ground this week. However, there has been little change overall, with gold on the December contract rising by just 0.6% to $1,717 over the last five trading days.

Of course, the only practical way for most private investors to invest in gold is through exchange-traded funds. The performance of the $63bn SPDR Gold Trust ETF (NYSE: GLD.US) has inched ahead over the last five trading days, gaining 0.2% to $166.43. The London-listed Gold Bullion ETF (LSE: GBS) has performed in a similar fashion, gaining just 0.1% to $165.92 over the last five days. Both funds are up around 9% so far this year.

Gold's big movers

Many investors prefer to invest in gold-mining stocks, rather than gold itself, as investing in miners offers the potential for leveraged gains on the price of gold. Let's take a look at some of this week's biggest movers.

Investors betting that Centamin (LSE: CEY) will recover from its recent share price collapse are doing well so far. The shares have gained another 9% to 73p this week, after the company said that the recent court judgment against it did not invalidate the mining concession agreement for its Sukari mine in Egypt, and merely required some missing paperwork to be provided to the court. Centamin's shares remain 24% down on the month.

Harmony Gold Mining (NYSE: HMY.US) has risen 10% over the last month to $8.71. Harmony is the third-largest gold producer in Africa and its share price has been given a big boost by its latest quarterly results, which were published yesterday. First-quarter net income rose by almost 400% and gold output reached the highest level in 10 quarters, with 321,924 ounces of the yellow metal produced over the last three months. CEO Graham Briggs believes the company is on course to increase production to 1.7 million ounces per year in 2016 from 1.3 million ounces in the current financial year.

Fellow South African gold miner Gold Fields (NYSE: GFI.US) is also up, rising 7.1% to $13.02 over the last month as the disruption caused by the recent strikes in South Africa abates and production returns to normal. On Tuesday, workers at the KDC East Mine returned to work and all three of Gold Fields' operating mines in South Africa are now back in production.

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Further investment opportunities:

> Roland does not own any shares mentioned in this article.

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AndyThailand 08 Nov 2012 , 4:54pm

At a mere 390 words (omitting the tedious and tired standard MF adverts for other pages), this article is ludicrously short of ideas, analysis and content. There is not even the fig leaf of a chart.

Fools will make better of time is to looking at the iii site or Citywire.

MF, can we PLEASE have either more articles of real substance or less of these which constitute not much more than the pub chat of Daily Mail readers?

AndyThailand 08 Nov 2012 , 4:58pm

Oh, and I should have plugged Morningstar's excellent site too!

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