Gold miners SMASHED again: Is now the time to buy?

Unfortunately for their shareholders, Australia’s leading gold producers have once again dropped sharply as investors rotate out of safe haven assets.

In morning trade the S&P/ASX All Ords Gold (Index: ^AXJO) (ASX: XJO) has fallen around 4%, bringing its decline in the last five trading sessions to a whopping 14%.

Among the worst performers today have been the Newcrest Mining Limited (ASX: NCM) share price, the Northern Star Resources Ltd (ASX: NST) share price, and the Alacer Gold Corp – CDI (ASX: AQG) share price. At the time of writing each of these miners is down at least 5%.

Not far behind them are Resolute Mining Limited (ASX: RSG), Evolution Mining Ltd (ASX: EVN), and Regis Resources Limited (ASX: RRL).

Why have they fallen?

I believe many investors had expected the French election and rising tensions in North Korea to cause the share market to tumble and the gold price to rally.

But with tensions easing in North Korea and the French election likely to be won by Independent candidate Emmanuel Macron and not far-right politician Marine Le Pen, the gold price looks more likely to fall than climb higher now in my opinion.

What’s next?

If the French election is won by Macron and conflict is avoided in North Korea, I believe the share market will continue to climb higher and the gold price will start to sink lower.

Especially with rates rising in the United States. As rates rise, bond yields widen, reducing the appeal of holding the precious metal.

So for now I would suggest investors avoid the gold miners and focus on the great number of opportunities available to them elsewhere in the market.

These growth shares, for example, would be far better investments than the gold miners in my opinion. I expect their 12-month returns will smash those of Newcrest and Resolute Mining.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you’re expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you’ll be sorely disappointed. Not only are their dividends growing at a snail’s pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these “new breed” blue chips couldn’t be greater… especially the very real prospect of significant share price gains, something that’s looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.