AEXG, SGZ, GDP: AIM gold stocks under investors’ lens

Highlights

• Gold prices are very volatile as they are impacted by geopolitical and economic events.
• Gold is an attractive investment option for investors as it has the potential to act as a hedge against rising inflation.
• Investing in gold stocks is considered better that investing in the physical metal as gold stocks may offer comparatively greater returns.

Amid the rising uncertainty in the UK economy, gold stocks are under investors’ lens. With the resignation of Boris Johnson and the collapse of the UK Government, the Brits are facing an unpredictable future, and are thus keen on preserving their hard-earned money while the economic turmoil and the cost-of-living crisis continue to grow.

The price of gold, which is considered a safe haven metal, is very volatile as it is impacted by geopolitical and economic events. Ever since 2022 began, gold prices have witnessed volatility due to global events. At around 12:00 PM (GMT+1) on 8 July, the gold price was quoted at US$1,740.20 per ounce, up by 0.03% against the prior day’s closing. Gold is an attractive investment option for investors as it has the potential to act as a hedge against rising inflation.

Investing in gold stocks instead of the physical metal is considered to be a better option for investors as gold stocks may potentially offer greater returns due to higher production and subsequent cost reduction. This concept, known as economies of scale, facilitates gold mining companies to outshine the price of gold.

Nevertheless, all gold stocks don’t outperform gold. Due to this reason, investors must meticulously analyse the gold stocks they are considering before buying them. 

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Investing in gold stocks instead of the physical metal is considered to be a better option for investors as gold stocks may potentially offer greater returns due to higher production and subsequent cost reduction. This concept, known as economies of scale, facilitates gold mining companies to outshine the price of gold.

Let’s look at 3 UK gold stocks that investors can keep an eye on. 

AEX Gold Inc (LON: AEXG)

As a gold mining business, AEX Gold Inc. boasted a market cap of £73.50 million as of 8 July. The Greenland-based firm offered its investors one-year positive returns of 45.91% with its YTD returns being 17.21%. AEXG's shares were trading at GBX 41.50 at 1:05 PM (GMT+1) on 8 July.

Scotgold Resources Ltd (LON: SGZ)

Scotgold Resources Ltd boasted of a market cap of £43.15 million as of 8 July. The Scotland-based firm has given its investors a one-year positive return of 28.51%, while its YTD return stood at 4.67%. Its EPS, however, was witnessing a downtrend as it was at -0.09. Scotgold Resources Ltd’s shares were trading at GBX 72.50 at 1:10 PM (GMT+1) on 8 July.

Goldplat plc (LON: GDP)

Goldplat plc is a gold recovery services business. The GDP's market cap as of 8 July stood at £13.17 million. Offering its investors a one-year return of 4.03%, Goldplat pls's shares were trading at GBX 7.85 at 1:10 PM (GMT+1) on 8 July. GDP's YTD return stood at 9.62%