Key Points
Its No. 1 product was enduring price declines.
The precious metal is now notably lower than its historic peak in late January.
New Gold's (NYSEMKT: NGD) stock was hardly golden on the market this week. As one of the many pure-play precious metals mining companies on the scene, its equity took a hit as the prices of such goods declined over the past few days. Ultimately, its shares fell by 17% over the week, according to data compiled by S&P Global Market Intelligence.
A pure-play at heart
Precious metals had been on a tear for months, culminating in an all-time high spot price for gold of almost $5,600 per ounce in late January.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
That was due to something of a perfect storm, with growing worries about inflation, and developments in the geopolitical sphere driving investors into investments traditionally considered to be safe; for many, gold is considered to be such an asset.
Yet developments in recent weeks dampened the rally, prompting people to sell precious metals. One major factor in this is the strengthening of the U.S. dollar, a dynamic that makes primarily dollar-denominated assets more expensive for investors holding other currencies. Another is profit-taking; many gold holders clearly saw an opportunity to book handsome gains by selling at those historic prices.
Meanwhile, New Gold's status is somewhat in limbo, which doesn't help with market sentiment. Last November the company agreed to be acquired by peer Coeur Mining. So far, the deal has surmounted several hurdles, but some -- like approval under the Investment Canada Act -- are still pending.
New life for New Gold
In a world that has recently seen an uptick in uncertainty, not least because of the war with Iran, I feel gold and other precious metals have a better-than-average chance of rising in the proximate future. And while a merger in the industry is never easy or quick, I think the Coeur Mining/New Gold deal will wrap up before long. Gold bugs should consider loading up on New Gold stock while it still exists.
Should you buy stock in New Gold right now?
Before you buy stock in New Gold, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and New Gold wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,817!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,123,912!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 6, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
