Top 5 Gold Companies For 2014

A trust product marketed by mega-bank ICBC is facing default.

HONG KONG (CNNMoney) A high-yield investment product offered by China's largest bank is facing imminent default, an event that will cost investors millions and raise questions about the country's banking system.

The doomed 3 billion yuan ($500 million) trust -- cheerfully named Credit Equals Gold #1 Collective Trust Product -- is expected to go belly up at the end of January, the victim of a soured loan to a troubled coal mining company.

The trust, which promised investors a 10% return, was issued by China Credit Trust Company and marketed by Industrial and Commercial Bank of China, a state-owned enterprise that is among the largest and most profitable banks in the world.

Investors are now scrambling to figure out whether a bailout from the issuer, bank or government will materialize. Meanwhile, outside observers are watching to see how China handles the potential default of an investment product generated by the country's shadow banking system -- a rapidly growing but opaque part of the financial system.

5 Best Oil Stocks To Own Right Now: Iamgold Corporation(IAG)

IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Dan Caplinger]

  Elsewhere, losers were few and far between, but many gold stocks remained under pressure as the yellow metal only managed a modest bounce after yesterday's plunge. In particular, major producer Barrick Gold (NYSE: ABX  ) and gold miner IAMGOLD (NYSE: IAG  ) fell between 4% and 5%. Both companies were on the list of holdings of billionaire hedge fund investor John Paulson's gold fund as of Dec. 31, and with rumors circulating that Paulson may have to liquidate positions to handle coming redemption requests, the stocks that he reportedly owns could see further selling pressure even if gold bullion prices rise.

• [By Inyoung Hwang]

  Royal Bank of Scotland Group Plc sank 3.3 percent after reporting results and naming the head of its U.K. consumer unit as chief executive officer. William Hill Plc (WMH) dropped the most in four years after the bookmaker posted earnings that missed analysts��projections. International Consolidated Airlines Group SA (IAG) rose to a five-year high as the parent of British Airways reported an operating profit in the second quarter.

• [By Dan Caplinger]

  IAMGOLD (NYSE: IAG  ) will release its quarterly report on Monday, and as with most gold mining companies, it's expected to post disappointing results compared to last year's figures because of the big drop in gold prices during the second quarter. Yet investors still expect IAMGOLD earnings to show the company's profitability, giving it a competitive advantage over weaker producers that are struggling to stay out of the red.

• [By Namitha Jagadeesh]

  International Consolidated Airlines Group SA (IAG) and Air France-KLM (AF) Group rose with as a gauge of travel stocks as oil prices fell after Iran�� accord. PSA Peugeot Citroen gained 3.7 percent after people familiar with the matter said its chief executive officer plans to step down next year. Fresenius Medical Care AG surged the most in five years after U.S. regulators scrapped a plan to cut Medicare payments next year.

Top 5 Gold Companies For 2014: Agnico-Eagle Mines Limited(AEM)

Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. The company primarily explores for gold, as well as silver, copper, zinc, and lead. Its flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. The company was founded in 1953 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Holly LaFon]

  He increased his holdings in gold companies in the fourth quarter accordingly. Gold stocks he found attractive in the fourth quarter are: Novagold Resources (NG), Randgold Resources (GOLD), Iamgold Corp. (IAG), Barrick Gold Corp. (ABX), Agnico Eagle (AEM) and International Tower Hill (THM).

Top 5 Gold Companies For 2014: Pershing Gold Corp (PGLC)

Pershing Gold Corporation, incorporated on August 2, 2007, is a gold and precious metals exploration company. The Company is pursuing exploration and development opportunities primarily in Nevada. It is focused on exploration at its Relief Canyon properties in Pershing County in northwestern Nevada. None of the Company�� properties contain proven and probable reserves, and all of its activities on all of its properties are exploratory in nature. The Company seeks properties with known mineralization that are in an advanced stage of exploration and have previously undergone some drilling but are under-explored. It is focused on exploration of the Relief Canyon properties, recommissioning the Relief Canyon gold processing facility and, if economically feasible, commencing mining at the Relief Canyon Mine.

Relief Canyon Mine Property

The Company�� Relief Canyon properties totals approximately 25,000 acres and consists of approximately 940 owned unpatented mining claims, 120 owned millsite claims, 170 leased unpatented mining claims, and leased and subleased private lands. The Company drilled 44 holes for approximately 28,500 feet in 2013. This drilling was on land adjacent to the current deposit and focused on extending and upgrading the existing deposit. In January 2013 the Company reported 32,541,000 tons of mineralized material at an average grade of 0.017 ounces of gold per ton and a cut-off grade of 0.0046 ounces of gold per ton.

Advisors' Opinion:

• [By ValueInvestor7]

  I listen to investing advice from self-made billionaire investors, and I try to ignore advice from everyone else. I suspect readers on this website will appreciate this, where thankfully the Focus is still Gurus. To this end, I bring you the instructive story of Pershing Gold Corp (PGLC) and Levon Resources (TSE: LVN) (LVNVF).

Top 5 Gold Companies For 2014: Australian Dollar(AU)

AngloGold Ashanti Limited primarily engages in the exploration and production of gold. It also produces silver, uranium oxide, and sulfuric acid. The company conducts gold-mining operations in South Africa; continental Africa, including Ghana, Guinea, Mali, Namibia, and Tanzania; Australia; and the Americas, which include Argentina, Brazil, and the United States. It also has mining or exploration operations in the Democratic Republic of the Congo, Guinea, and Colombia. As of December 31, 2010, the company had proved and probable gold reserves of 71.2 million ounces. The company has a strategic alliance with Thani Dubai Mining Limited to explore, develop, and operate mines across the Middle East and parts of North Africa. AngloGold Ashanti Limited, formerly known as Vaal Reefs Exploration and Mining Company Limited, was founded in 1944 and is headquartered in Johannesburg, South Africa.

Advisors' Opinion:

• [By Patricio Kehoe] stion arises: Why is First Eagle bullish regarding such a company? The answer might lie in the huge discount at which the third-largest gold producer by output is trading, along with a certain degree of long-term optimism.

  Huge Holdings Point to Long-Term Commitment

  Since First Eagle recently increased its stake in Anglogold by more than 20%, bringing his total holding to over 32.5 million shares, I believe we are looking at a long-term investment. I am keen on pointing this out, since the stock is currently performing very poorly, and has already lost around 275% of its value year to date. Above average production costs and plummeting gold prices have put a huge deal of pressure on the gold miner, leading to very poor results. In addition, since many of its operations are in geopolitically risky countries such as Mali and the Democratic Republic of Congo, shareholders have been shedding this stock in large volumes.

  Although Anglogold had a very rough year, and will continue to face elevated cash costs and reduced margins going into 2014, there are some positive signals looking forward. One of the most promising features, are the firm�� operations in South America and Australia, which are enjoying solid organic growth. Although investors will have to wait some years for assets in these regions to reach full production, large profits should be achieved in the long-term. In other words, First Eagle surely has its eyes set on the company�� new projects, and their future growth potential.

  Projected Growth and Low Price

  Another attractive feature investors must keep in mind is a stock�� growth potential. When looking at Anglogold, this becomes especially relevant, as a comparison to Barrick Gold Corp (ABX) will demonstrate. Anglogold currently offers 13.6% returns on invested capital, compared to Barrick�� -2.8%, and has an EBITDA growth rate of 465.7%, the highest in the industry. Thus, whereas the Canadian miner has a negative EPS