Gold Stocks Lagging Behind: Ready for a Breakthrough?
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 Published On Mar 29, 2024

While gold itself has shattered records, reaching new all-time highs, several gold stocks have not mirrored this triumph. This discrepancy has left many investors puzzled, and rightly so. Why aren't these gold stocks riding the wave alongside gold, and more importantly, which ones are poised to make their move?

As someone deeply entrenched in the ebb and flow of the markets, I've been keeping a close eye on this. While the broader market remains skeptical of gold's rally, it's impossible to ignore the success stories within the sector. Australian-based companies like Ramelius Resources (ASX:RMS), Westgold Resources (ASX:WGX), and Spartan Resources (ASX:SPR) have seen their value skyrocket. Yet, this enthusiasm hasn't been universal, leaving several promising stocks in the shadows, seemingly undervalued.

Among these, two stocks stand out to me: West African Resources (ASX:WAF) and Perseus Mining (ASX:PRU). Despite the challenges, including geopolitical tensions that have notably impacted regions like Burkina Faso, these companies have shown resilience and potential for significant growth. With West African Resources making a commendable leap and Perseus Mining trading at an attractively low EV/FCF ratio, it's hard not to take notice.

In today's Closing Bell video, I'm diving into these two gold stocks that have lagged behind the broader rally. It's time to scrutinize their potential and question whether they're about to spring forward, catching up with their peers. With gold's price on the ascent, the opportunity to capitalize on these undervalued stocks could be golden.

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