Best gold stocks to buy now

What are gold stocks and investments?

Gold stocks and investments are shares in companies that engage in the exploration, mining, and distribution of gold. The key aspects of gold stocks and investments center on their role as a store of value and potential hedges against economic uncertainties.

The value of gold is relatively stable over time, which makes it a popular choice for investors to preserve their wealth. Therefore, it provides a safe haven for investors to hedge their assets against inflation, currency depreciation, and economic uncertainties without diminishing in value.

One of the ways of investing in gold is to buy the shares of a particular mining company. Gold mining companies are engaged in the exploration and extraction of gold and sell it on the open market. Other gold mining companies operate using the royalty streaming model by funding gold miners in exchange for a share of the mined products at a discount price.

However, the performance of the stocks isn’t influenced just by the market value of gold alone, but also by the operational efficiency of the gold mining company. Therefore, it is recommended that potential investors do a thorough research on the performance of a gold mining company before investing in it. Find out which is better to invest in: gold vs stocks, in the TU article.

Top gold stocks to invest in

• 1

  Eldorado Gold Corporation (EGO)

  Eldorado Gold Corporation is a Canada-based gold mining company founded in 1992 and has contributed immensely to the gold mining industry. It has diverse assets across different geographical regions for the exploration, development, and mining of gold properties.

  The strength of this company lies in its mining expertise, diverse portfolio, and financial stability. It has a market cap of 2.11B and an Earning per Share (EPS) of 846.38% between January and November 2024, indicating a fair profitability.

  The company also has a portfolio of high-quality assets, including several mining operations distributed across various geographical zones (Olympias mine in Greece, Lamaque mine in Canada, and Kisladag and Efemcukuru mines in Turkey) for long-term growth. This practice of geographical diversification helps mitigate the risk of operational factors or economic impact caused by instability in a single geopolitical region.

  Furthermore, the company also engages in other exploration and development projects in a bid to discover new and existing reserves to maintain a continual sustainable production pipeline.
• 2

  AngloGold Ashanti Limited (AU)

  AngloGold Ashanti Limited is one of the world's largest gold mining companies, with operations and projects across multiple continents. It is a South Africa-based gold mining company established in 2004 and is focused on the exploration and marketing of gold.

  According to Investors Observer, a platform that compares and analyzes the performance of stocks, AngloGold Ashanti Limited (AU) scored 47, which puts the company as one of the top performers in the gold industry. The score of 47 implies that it attracts more investors than 47% of other stocks.

  AngloGold Ashanti Limited has a market cap of 6.67B 11B and an Earning per Share (EPS) of 5.33% as of November 2024, with a 5-year EPS projection of 19.20%. The company stands as the world’s fourth largest gold mining industry in 2024 and operates in key gold-producing regions, including Africa, Australia, and the Americas, indicating a well-thought-out diversity of assets.

  The spread of assets provides a foundation for long-term production and also helps to mitigate risk caused by political instability, economic fluctuations, and regulatory changes. The operational efficiency of AngloGold Ashanti Limited is top-notch. It employs the best practices using advanced technologies to enhance production efficiency while reducing production costs.

  The company has also made several strategic partnerships and acquisitions for sustainable growth and development.
• 3

  Royal Gold, Inc. (RGLD)

  Royal Gold, Inc. is another gold mining company doing great in the industry. It is a metal streaming and Royalty Company based in the United States. It generates income from the sales of gold, silver, and other precious metals. The company has a market cap of 7.04B with an Earning per Share (EPS) that stands at 0.61%. Besides, the EPS for the next five years is projected at 4.90%, which indicates future earning prospects.

  Unlike other gold mining companies that operate mines directly, Royal Gold generates revenue by providing upfront capital to mining companies to acquire royalty interest and metal stream at a predetermined price. In other words, it finances other mining companies in exchange for a right to purchase a percentage of the mined product at a fixed discount price.

  The royalty and streaming business model operated by the company helps mitigate operational risk from operating direct mines. Royal Gold also maintains a diversified portfolio of assets strategically located in various regions to protect the company from any eventuality to a single region.

  The spread of assets provides a foundation for long-term production and also helps to mitigate risk caused by political instability, economic fluctuations, and regulatory changes. The operational efficiency of AngloGold Ashanti Limited is top-notch. It employs the best practices using advanced technologies to enhance production efficiency while reducing production costs.
• 4

  Gold Fields Limited (GFI)

  Gold Fields Limited is one of the leading South Africa-based gold producers founded in 1887. It has significant reserves in various regions, including South Africa, Peru, Chile, Ghana, West Africa, and Australia. The company also engages in exploration for copper deposits.

  The company is notable for its commitment to sustainable development using the best mining practices. It invests heavily in technology to carry out safe environmental mining practices, reduce production costs, and enhance operational efficiency.

  The strategic partnerships and collaborations of Gold Fields Limited with the government and other stakeholders are worth mentioning. It gives the company more exposure and creates a favorable environment that facilitates growth and development.

  Finally, the company releases its financial records to the public every six months. The financial record of the first half (H1) of 2024 shows that it generated $2,266.3 million as revenue, which indicates a 1.4% increase compared to the 2022 H1 report.
• 5

  Franco-Nevada Corporation (FNV)

  Franco-Nevada Corporation is a company that profits from the gold mining sector without owning and operating mines but through royalty and streaming agreements. Essentially, it agrees to fund a mining company in exchange for buying the mined product at a fixed discounted rate.

  The company has a diversified portfolio in different regions, including the United States, Canada, and Latin America. It is committed to sustainable gold exploration and adheres to the responsible mining principle set by the World Gold Council. The company is also working toward a five-year growth and expansion plan through mine expansion and acquiring new mines.

  The financial stability of a company is one of the factors investors look into before taking the next step. Fortunately, Franco-Nevada Corporation has fair financial stability. For instance, the report released by Franco-Nevada Corporation for Q2 2024 speaks volumes of the company’s strong financial position.

  The report shows that the company has $2.3 billion in capital as of June 30, 2024, and with no debt. The report also showed that it generated $261.9 million in operating cash flow during the quarter. So, Franco-Nevada Corporation is a good buy for investors at the moment.
• 6

  Wheaton Precious Metals Corp. (WPM)

  Wheaton Precious Metals is also a company in the gold mining sector that leverages royalty and streaming business models by providing funds for mining companies. It eases the financial burden by supporting gold miners with upfront capital to run the mining process from production to expansion in exchange for an opportunity to buy the product at a discounted rate.

  The company has a market cap of 19.47B and a volume of 1.918, 226. Besides, the Earnings per Share (EPS) for the next five years is projected at 4.90%. Wheaton Precious Metals has a relatively stable and predictable cash flow from the streaming model system it operates. It buys metals at fixed discounted prices from miners regardless of market fluctuations and sells at the current market value. It also boasts a diversified portfolio of various precious metals to mitigate the risk of market fluctuations in the prices of a metal.

  Finally, the company has continually explored options for expanding its portfolio of streaming agreements with different mining industries for growth. Also, it has a healthy financial record and stability because it owns precious metals without engaging in mine operations, which involves potential operational risk.
• 7

  Pan American Silver Corp. (PAAS)

  Pan American Silver is a mining company established in 1994 and has become one of the largest producers of silver and gold in the Americas. It has mines in Canada, Mexico, Argentina, Peru, Chile, Brazil, and Bolivia.

  The strength of the company comes from the profits it generates from the diverse portfolios across various countries where it operates. It also adopts a long-term growth strategy by siting its mining industries in geopolitical regions with relatively stable economic conditions.

  The company’s market cap is 4.85B with an Earning per Share (EPS) of 214.29% as of November 2024. It has been able to generate positive cash flow and profitability through effective cost management. It also has a robust cash reserve for expansion, acquisition, and other investments to enhance the company’s growth potential.

Best brokers to invest in gold stocks

1

9.4/10

Go to broker

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Minimum deposit:

From $100

Review

The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA.

Pros/Cons

•High level of reliability ensured by the licenses of respected regulatory authorities and participation in the compensation funds.

•Wide selection of assets quoted at stock exchanges in the UK, U.S., Australia and Asia.

•An opportunity to combine active trading with social trading and passive investing.

•Zero-fee trading of a number of stocks.

•Access to ready-made diversified asset portfolios with various risk levels.

•Provision of leverage, educational materials on various markets and user-friendly trading platforms that can run on any device.

•Zero fees for portfolio management, depositing funds and account maintenance.

•High minimum deposit for users of a number of countries.

•No live chat on the website for quick connection to customer support.

Study Review

2

9.2/10

Go to broker

Your capital is at risk.
Via eOption's secure website.

Minimum deposit:

$1

Review

The eOption broker (eoption.com) is an American stockbroker headquartered in Glenview, Illinois. It has been operating since 2007 and is a member of FINRA (CRD#: 7297/SEC#: 8-21765) and SIPC. It specializes in options trading and also acts as an intermediary in trades involving the popular securities classes. The company offers low trading commissions, super-fast execution of orders, and modern platforms with an advanced set of analytical tools. In 2020-2021, eOption was recognized as the best options broker by several resources such as Investopedia, The Tokenist, Benzinga, Investormint, and NerdWallet.

Pros/Cons

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•No minimum deposit requirements for cash trading accounts opened by US residents.

•FINRA membership and the protection of clients’ funds are available through Securities Investor Protection Corporation (SIPC).

•Access to professional trading platforms such as DAS and Sterling Trader Pro are developed by third-party software developers for the proprietary eOption terminal.

•An affiliate program with high rewards.

•Compensation for commissions for funds or assets from other brokerage firms and institutions transfer.

•Prompt support by phone and online chat in the trading platform during company business hours.

•The narrow range of choice of investment solutions to generate passive income.

•You cannot trade Pink Sheet and Bulletin Board stocks.

•There is no online chat on the company's website.

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What will influence gold mining stocks in the middle term?

Gold mining stocks can be influenced by complex factors that can impact gold's supply and demand prospects. Let’s consider some key factors that could impact gold mining stock in the middle term:

• Gold Prices
  The price of gold in the market is one of the major factors that affect gold mining stock. Gold prices are largely influenced by economic conditions, geopolitical tensions, inflation, and currency movement. For instance, investors tend to move part of their portfolio to gold as a safe haven during times of uncertainties like global conflict, economic instability, etc. This practice increases the price of gold as the demand rises, which would also positively impact the gold mining stocks.You also can be interested in gold daily signals and gold long-term price predictions.

• Central Bank Demand
  Central banks hold one of the biggest gold reserves on earth. So, the action of central banks regarding gold plays a crucial role in the gold market. For instance, gold can become appealing to investors if the central banks increase their gold reserves.

• Interest Rates
  Gold and interest rates are negatively correlated most of the time. Gold prices tend to increase when the interest rates are low, consequently affecting the price of gold mining stocks. Essentially, gold can become attractive to investors if the central banks adopt monetary policies that keep the interest rates low, which in turn impacts gold mining stocks.

• Currency Strength
  The strength and weakness of currency like the U.S. dollar tends to impact the prices of gold. A weaker dollar may boost gold prices, making it attractive for investors.

How to choose gold stocks to buy?

Before making any investment decision on any gold stock, it is essential to research diligently the various factors that could significantly impact the gold mining company or the stocks. Here are some salient criteria to evaluate before selecting gold stock:

• Gold mining operations
  One of the factors you can use to evaluate the prospect of a stock is to check the gold resources and gold reserves of the mining company. The long-term sustainability of a gold mining company is dependent on its ability to replace mined reserves.

  Also, look for companies that practice environmentally friendly and cost-effective mining methods. The production cost of the company per ounce of gold should also be evaluated as well. Companies with lower production costs tend to have higher profit margins.

• Financial performance
  The financial record of the company is also very crucial for long-term sustainability. Evaluate the earnings and revenues generated by the company over time. The profit margin should also be looked into to understand how the company turns revenue into profit.

  Finally, do not ignore the company’s debt levels, especially during significant economic downturns.

• Market Conditions
  Check the gold price outlook to understand the trend in the price of gold because gold stocks are sensitive to changes in the price of gold. Also, evaluating the overall market sentiment and economic conditions will help you to make informed decisions. For instance, gold performs well during times of inflation or economic uncertainties.

Benefits and risks of investing in gold mining companies

Investing in gold mining companies can be financially rewarding. However, it also comes with inherent risk, especially when compared to standard investments like index funds. Here are some of the potential benefits and risks of investing in gold mining companies:

Benefits of Investing in Gold Mining Companies:

• Inflation Hedge
  Gold is often used to hedge against inflation. So, an increase in inflation may also increase the profitability of gold mining companies because the value of gold tends to rise during inflation.

• Hedging Against Inflation
  Investing in gold mining stocks can be used as a diversification strategy to hedge against economic downturns. The value of gold tends to retain its value even when the value of fiat currencies declines.

• Diversification of portfolio
  Investing in gold mining companies provides a means for investors to diversify their assets.

• Leverage to Gold Prices
  Investors can make significant profits from the increase in the price of gold by investing in gold mining companies.

Risks of Investing in Gold Mining Companies:

• Operational risks
  Gold mining involves a capital-intensive process to set up and manage. It is also faced with geographical uncertainties, regulatory issues, and production challenges. These risk factors, if not properly managed, can stall the production process, which in turn affects the financial capability of the company.

• Change in Policies
  The activities of gold mining companies can be significantly affected by geopolitical instability, unfavorable changes in government policies, and environmental regulation, thereby affecting the company.

• Industry Cyclical Nature
  The gold mining industry is notable for its cyclical nature, with periods of boom and bust. Economic downturns may lead to lower prices of gold due to decreased demand, which may affect the financial health of the company.

Comparison with Index Funds:

• Risk Tolerance
  Gold mining stocks are more volatile than broad-market index funds. Therefore, investors with high-risk tolerance find gold mining stocks more appealing, while investors seeking lower risk may prefer index funds due to lower volatility.

• Diversification
  Index funds have broad market exposure that cuts across various sectors, offering more diversification opportunities to investors. On the other hand, gold mining stocks offer lesser diversification.

• Long-term growth
  Index funds are often preferred for long-term investment, while gold mining stocks are often considered for short and medium-term gains based on the market price of gold.

• Stability
  Index funds are generally less volatile and more stable than the gold mining stocks.

Gold stocks vs gold ETFs: What to choose?

Gold stocks vs gold ETFs (Exchange-Traded Funds) are two distinct ways of investing in gold. To start with, gold stocks are simply physical gold held in the vault. Therefore, investors can buy gold in jewelry, coins, or bars from gold merchants.

Conversely, gold ETFs are derivatives of gold assets developed to track the price of gold and are backed by physical gold. Gold ETFs are also traded on the stock exchange using a broker; however, they are less liquid than gold stocks.

So, in conclusion, the decision to invest in gold stocks or gold ETFs boils down to the risk tolerance of an investor, level of expertise, and investment goals. Therefore, gold ETFs are the best choice for a beginner investor because they are easily accessible on the stock exchange, require less capital, are good for short-term investment, and are less liquid than gold stocks.

On the other hand, pro investors may invest in gold stock, especially for long-term purposes. However, it requires in-depth research on the market price before investing. Besides, investing in Gold stocks and gold ETFs for diversification is also a viable option for beginners and pro investors.