Gold miners could go gangbusters as Trump heads to White House

Up until lunch time the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) had been cruising along nicely, posting a reasonably solid 0.4% gain. But all that changed in the blink of an eye when Donald Trump suddenly took the lead in the race to the White House.

Currently the S&P 200 Index is around 3.2% lower as markets across the world sell-off and investors head to safe haven assets. This drove the spot gold price higher by 4% from US$1,272 an ounce to US$1,322 an ounce.

With the majority of shares now deep in negative territory, the gold miners are amongst the only shares making gains today.

So much so the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) has surged higher by over 10% as the chart below shows.

Source: Google Finance

If Trump does in fact win the election then some believe the gold price could climb as high as US$2,000 an ounce. But before investors get too excited and pile into the gold miners, it is worth remembering that the same was said about the Brexit. But those gains never eventuated.

At the moment the gold miners making strong gains are as follows:

Company +/-
Beadell Resources Ltd (ASX: BDR) 6.8%
Metals X Limited (ASX: MLX) 8.8%
Newcrest Mining Limited (ASX: NCM) 8.7%
Northern Star Resources Ltd (ASX: NST) 12.6%
OceanaGold Corporation (ASX: OGC) 7.2%
Resolute Mining Limited (ASX: RSG) 6.5%
Saracen Mineral Holdings Limited (ASX: SAR) 12.3%
St Barbara Ltd (ASX: SBM) 8.1%

Instead of diving into the market and investing in the gold miners, I would suggest investors wait for things to settle and pick up some bargains after the sell off. No doubt there will be many.

These rapidly growing shares are the perfect example of shares I think investors should look at investing in. Each has strong growth potential.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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