Right. Newmont Corporation (NEM 8.22%). It had a day. Or rather, it had a morning. Down 7.2% as of 11:05 a.m. ET today. Which, let’s be honest, is a bit dramatic after hitting an all-time high yesterday. It’s always the way, isn’t it? One minute you’re feeling all buoyant and successful, the next you’re questioning all your life choices and wondering if you should just become a shepherdess. Still, one shouldn’t panic.
Units of Newmont Stock Owned: A Respectable Amount (Until Today). Hours Spent Staring at Gold Charts: Far Too Many. Number of Times I’ve Considered a Career Change: Double-Digit.
Why the Shine Wore Off
Gold, of course, is the culprit. It’s been having a moment, soaring to its own record highs this week, breezing past $5,000 and then, yesterday, hitting $5,615. A bit showy, really. Then this morning, a bit of a wobble. Still above $5,000 at $5,080, but down 5.2% from its peak. It’s like a glamorous friend who’s suddenly decided to have a quiet day. Which, naturally, affects Newmont. Because, logically, if gold goes up, so does Newmont. And if gold goes down… well, you get the picture. It’s not rocket science, although sometimes it feels like it.
Should I Buy, Sell, or Hide Under the Duvet?
The immediate reaction, naturally, is to worry. To envision a financial apocalypse. But, and this is where the slightly more rational part of my brain kicks in, perhaps it’s not time to completely lose it. Because, apparently, the clever people at UBS have just raised their price target on Newmont by 28%, to $160 per share, and are still saying ‘buy’. And if anyone knows about gold, it’s the Swiss, isn’t it? They practically invented responsible banking. Or at least, they have a reputation for it.
I have to admit, I’m inclined to agree. Even after tripling in price over the last year (which, frankly, feels a bit excessive), Newmont still looks reasonably priced. Less than 20 times earnings, apparently. Which, in this market, is practically a bargain. Most analysts are predicting earnings growth of 58% annually over the next five years. That’s a PEG ratio of 0.34. A ridiculously low number. Which, if my calculations are correct (and they usually are, after several cups of coffee), means Newmont is, dare I say it, cheap.
So, perhaps, the sensible thing to do is to take UBS’s advice and buy. Although, of course, there’s always the nagging fear that I’m completely wrong. And that I’ll end up selling my house to pay for my mistakes. But that’s investing, isn’t it? A constant tightrope walk between hope and despair.
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2026-01-30 19:53