Gold Mining Stocks Are Beating FAANG Stocks. Here’s What You Need to Know
In times of the COVID-19pandemic, when many people are self-isolating, it doesn’t come as a surprise that FAANG stocks (Facebook, Amazon, Apple, Google and Netflix)have performed well at the stock market. But what’s fascinating is that gold mining stocks have done better.
In this blog, we’ll look at some possible reasons behind this turn of events. But first, let’s look at the numbers:
Performance of FAANG stocks
During the first few weeks of the coronavirus outbreak, as the panic and confusion regarding the global economic situation ensued, the stock market witnessed the biggest blow of the year.
Here’s how the FAANG stocks have performed ever since:
On March 18th, 2020,Facebook witnessed the biggest dip of the year with, devaluing to $138 per share. But soon after it rebounded nicely with a 60% gain and as of May 21st, 2020, the value of one Facebook share stands at $230.
Apple stocks also suffered the coronavirus blow during March when they dropped down to $216 per share. This drop was influenced by the affected Chinese production and sales of apple commodities. But since then, Apple has regained its stability as it jumped to a value of $319 at the stock market.
The biggest low of the year came to Amazon on April 27th, when its stock price fell to $2286. But with a steady increase in the last few days, the American multinational conglomerate has managed to reach a value of $2497 per share.
It seems like Netflix has benefited from the current situation the most as its stocks now stand at a value of $447.67. This comes after it’s low at $431 in mid-March.
Performance of gold mining stocks
As compared to the lucrative comebacks that FAANG shares have made at the stock market, the stock mining companies have performed better.
Establishments like Barrick Gold, Agnico-Eagle Mines and Newmont Mining suffered drops in March but soon rebounded and currently stand at a value of $27, $67 and $66 per share respectively.
These gold mining companies saw have seen an increase of more than a staggering 60% and have performed much better than any FAANG share at the stock market.
Why are gold mining stocks outperforming FAANG stocks?
One of the major reasons for the steady performance of gold mining companies is the increasing price of gold.
During the first weeks of May, gold saw a dip in its value but being the safe-haven that it is, gold demonstrated its potential to act as a hedge against inflation and investors started pouring in money in gold markets. This led to a quick rise in its value.
From a drop of $1688 on May 6th, gold has now jumped to a price of $1741 per ounce. Analysts speculate a further increase in its value in the coming days as more people start to invest in long term savings against an impending economic crisis.
If you’re looking for an opportunity to make money in today’s volatile market, we believe you should invest in physical gold and diversify your investment portfolio. To view a stunning collection of gold coins and bullions, visit our website at Orion Metal Exchange.
Call us at 1-800-559-0088 for more information!