The S&P/ASX 200 Index (INDEXASX: XJO) climbed just 1.14% higher in an up and down week for the benchmark Aussie index last week.
Leading the ASX 200 winners were 2 Aussie gold miners: Saracen Mineral Holdings Limited (ASX: SAR) and Northern Star Resources Ltd (ASX: NST).
The Northern Star share price shot 10.88% higher while Saracen shares gained 9.93%.
So, what was behind the surge and can these 2 Aussie gold miners keep it up this week?
Why the ASX 200 gold miners surged higher last week
Northern Star kicked off the week by announcing a US$800 million acquisition. Northern Star entered into a binding sale agreement with Newmont Goldcorp Australia to acquire a stake in Kalgoorlie Lake View Pty Ltd (KLV).
Through the stakes held by KLV, Northern Star will acquire US$775 million of Kalgoorlie Consolidated Gold Mines Pty Ltd (KCGM). KCGM is a 50–50 joint venture (JV) between US-based Newmont Goldcorp and Saracen, and the JV's assets include the Super Pit gold mine in Kalgoorlie, Western Australia.
It was interesting to see the Saracen share price also shoot higher last week, given the lack of specific news out of the Aussie miner.
Saracen shares jumped in November after it announced it would also acquire a 50% stake in the Super Pit mine. The other 50% stake was held by Newmont Goldcorp (prior to Northern Star's purchase last week).
Investors clearly scrambled to buy Saracen shares following news that Northern Star would become its new JV partner in the Super Pit mine.
Should you buy into gold right now?
I'm not personally a big investor in the ASX 200 gold miners as I see them as a speculative bet on global volatility.
With a resolution to Brexit looking more and more likely, I wouldn't be betting on gold prices going higher next year.
However, if you're willing to bet on volatility then Northern Star or Saracen could be a good option in 2020.
