LONDON -- The price of gold bounced around last week, ranging between $1,366 and $1,395 per ounce. However, by the end of the week, little had changed, and gold for immediate delivery ended the week 0.4% higher at $1,387 per ounce.

Of course, the only practical way for most private investors to invest in gold is through exchange-traded funds. The largest gold ETF, the $51 billion SPDR Gold Trust , ended the week 0.73% higher at $134.43, while London-listed Gold Bullion Securities edged up 0.53% to end the week at $133.93. So far this year, shareholders of Gold Bullion Securities have seen the value of their holdings fall by 15.2%, while the value of SPDR Gold Trust shares has fallen by 17.6%.

Gold's big movers
Several miners made gains last week, outperforming the price of gold. Although these companies may not have issued major updates last week, their above-average performance suggests that investors may believe they have been discounted too heavily following recent falls in the price of gold.


Petropavlovsk climbed 3.2% to 140 pence over the final two days of last week after the company reported that asset manager Schroders had taken a 5% stake in the company. Petropavlovsk's share price has fallen by 62% so far this year but has gained 7.3% over the last month after the company announced cost-cutting plans and said it had hedged approximately 55% of its output for the next year at $1,408 per ounce, slightly above the current price of gold.

Shanta Gold edged higher last week and has risen by 5.5% to 11.8 pence over the last month. The firm's stock climbed on Friday following a report that a strategic advisor to the board of the company, Jonathan Leslie, had purchased 2,300,000 shares in a deal worth £270,250 that increased his stake in the firm to 3.34%, or 15.4 million shares. Shanta Gold's main asset is the New Luika gold mine in Tanzania, which began production in August 2012 and has sold 22,000 ounces of gold to date.

DRDGold climbed 4.2% to $6.25 last week. Rather than mining gold, this South African firm is focused on large-scale reprocessing of the tailings, or waste piles, of large gold mines in order to extract the gold that was not captured by the original mining process. This business is heavily mechanized and requires a relatively small workforce, giving DRDGold some protection from the rising labor costs that are reducing the profitability of many South African mining firms.

Shares versus commodities
Shares in commodity companies have outperformed their underlying commodities many times over the last 10 years thanks to their ability to magnify their gains through successful development of new resources. This free report from the Fool, "Ten Steps To Making A Million From The Market," contains some excellent tips on identifying and investing in potential multibagger shares, including resource shares like gold miners. I strongly recommend that you click here and download it now, as it will only be available for a limited time.

The article 3 Gold Shares Rising Strongly originally appeared on Fool.com.

Roland Head has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Hannah Godfrey

Thanks for the insight. These gold shares seem to be very promising. However, I would slightly diverge on the opinion of comparing investments in gold shares and physical gold. In my opinion it’s not an either or investment decision, instead one should hold both in ones portfolio. Over the decade starting from 2000, gold spot price has gone up exponentially http://www.meritgold.com/market-data and that’s why investing in physical gold can’t be ignored instead should be complemented with stocks and bonds.

June 19 2013 at 6:03 AM Report abuse +1 rate up rate down Reply
ASHHOLE

"TRQ" copper/gold mining in Mongolia is one to consider . Rio Tinto is the miner of this # 350 Billion/50 year mining resource. TRQ will be starting commercial open pit mine shipping at end of June 2013. Shares are presently $ 6.00- $ 7.00

June 17 2013 at 9:57 AM Report abuse rate up rate down Reply