Stocks to Watch on Gold Rush After Warren Buffett Bet

Gold is once again in the spotlight despite pulling back from record highs of $2063 an ounce. Legendary investor, Warren Buffett, taking some stakes in Canadian gold heavyweight Barrick Gold Corp (NYSE:GOLD) has once again affirmed there is value worth to pursuing around the precious metal.

The recent pullback might as well have presented an opportunity for investors who missed out on the initial spike, as the metal looks increasingly bullish. Global economic uncertainty amid the COVID-19 pandemic is one factor that continues to fuel investors’ demand for the precious metal often leveraged for its safe-haven qualities.

Gold Stocks

While buying gold outright can be challenging, a number of gold stocks are already providing ideal exposure to the precious metal. Eldorado Gold Corp (NYSE: EGO) is one such play that continues to offer exciting investment opportunities.

Having been in business for more than 20 years, the company is well-positioned to benefit from gold price flirting with record highs. The company is backed by five gold mines that generated more than 390,000 ounces of gold last year.

In addition to a robust gold production pipeline, Eldorado posted strong second-quarter financial results, affirming its ability to generate long-term value. In the quarter, gold production was up 50% with adjusted earnings coming in at $0.26 a share compared to $0.02 loss reported a year earlier.

Kinross Gold Corporation (NYSE: KGC) is another senior gold mining company that promises investors exposure to diverse mines and projects worldwide. The company’s pipeline is made up of proven gold reserves, amounting to 24.3 million ounces and 55.7 million ounces of silver.

The company is already benefiting from higher gold prices. Its Q2 revenue was up 20% to $1 billion as the company benefited from gold prices jumping 31% to $1712.

While Buffett has always termed gold useless, that is no longer the case, given the $560 million invested in Barrick Gold by Berkshire Hathaway Inc. (NYSE: BRK.A). With Buffet breaking his long-held negative stance about the precious metal, it might as well be playing host to the biggest opportunity amid the current global uncertainties.

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