Here’s why I’m buying this Golden UK100 Stock Now

we‘ve ’dug up’ a golden stock for you this week, excuse the pun. I think Polymetal International (POL.L) is a very attractive stock to buy following the recent gold price weakness. This UK mining share fell to its cheapest since June because of the falling gold price tag. Bullion values have slipped to their lowest for nine months below $1700 per bar, as optimism over the economic recovery has boosted demand for riskier assets like Bitcoin. Rising US Treasury yields haven’t helped demand for the golden metal either. Analysts data shows holdings in global gold backed funds fell 2% last month.

Gold prices could stay low if positive news over the economic rebound lessens demand for safe haven stocks. You might say this would damage Polymetal and pull the stock price lower, but I think the precious metals prices are more likely to spike again..... There are increasing concerns about booming inflation as central banks keep rates low and continue with quantitative easing so investors are slowly moving away from high growth stocks like tech.

As for Polymetal itself, the mining giant has a collection of top drawer assets from which it plans to steadily raise production over the next few years. Though the threat of rising labour and materials costs could tamper growth, I think the outlook look positive. Today’s prices mean that the company trades on a forward price-to-earnings ratio of nine times and carries a big 8% dividend payout.

I think it’s one of the most attractive cheap income shares to buy on the FTSE 100 right now and will be buying some when the market opens on Monday.