10 Best Gold Stocks To Buy Right Now

What are the 10 best gold stocks to buy right now? While gold is considered the best investment to hedge a portfolio against a market downturn, it is also among the worst performers when the stock market is hot. By comparison, investing in the stocks of gold mining companies can also provide some exposure to the commodity without quite as much volatility. Aside from buying physical gold, an investor can also buy gold exchange-traded funds, which is a more practical way to have exposure to the gold market, since ETFs have the same properties as ordinary stocks.

One thing to keep in mind is that buying gold mining shares is not the same as investing in gold mining. Even though the performance of gold miners is co-related to the price of bullion, there are many other factors to keep in mind. A gold mining company has its own financial position and assets, which affect its performance and stock price. So, if an investor considers investing in gold miners, they have to pick the right stocks, i.e. stocks in companies that can sail through periods of lower demand for the yellow metal and have enough reserves to be profitable for years to come.

One way to identify the best stocks to invest in is to look at the hedge fund sentiment surrounding them. Here’s where our research comes in handy. At Insider Monkey we track over 670 hedge funds and other large institutional investors and analyze their quarterly 13F filings to identify their collective sentiment towards thousands of stocks. We then use the data to identify companies that are part of our investment strategy, which has generated returns of over 45% since February 2016. We share the stock picks from our investment strategy with our premium subscribers, who can use them to beat the market. For example, the stocks we shared in February 2017, managed to outperform the S&P 500 ETF (SPY) by more than five percentage points over the following three months (see more details about our strategy here).

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Since we can identify what stocks are the most popular among hedge funds, we have selected the 10 best gold stocks, based on that data. The majority of these stocks are gold miners and the good news is that the industry has underperformed the broader market and was overlooked amid the recent rally. However, gold has nonetheless been advancing this year, being 7.14% in the green year-to-date.

Moreover, recent trends suggest that the demand for gold should be strong. Based on recent economic data, it is expected that the Federal Reserve will change its stance on interest rates and is likely to keep them at low levels for longer than was previously expected. The U.S dollar is also weakening, which is attributed to the GOP’s inability to repeal and replace the Affordable Care Act. The issues faced by the GOP with the new healthcare bill provides concerns about the new White House administration’s ability to pass other laws, particularly those aimed at taxes and regulations.

With this in mind, let’s take a closer look at the 10 best gold stocks to buy right now.

10. IAMGOLD Corp (USA) (NYSE:IAG)

In IAMGOLD Corp (USA) (NYSE:IAG), there were 15 funds in our database holding shares at the end of March, up by four over the quarter. Subsequently, the total value of their holdings surged to $118.06 million from $99.97 million. The Toronto-based gold miner’s stock has gained 35% since the beginning of the year, as the company reported strong financial results for both the fourth quarter of 2016 and first quarter of 2017. The company’s main reserves are at its Rosebel mine in Suriname in South America and earlier this year it reported that it found more gold at the nearby Saramacca mine, which it bought last year.

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9. Yamana Gold Inc. (USA) (NYSE:AUY)

In Yamana Gold Inc. (USA) (NYSE:AUY), the number of bullish investors remained unchanged at 15 during the first three months of 2017. However, the aggregate value of their positions slid to just $45.15 million from $147.34 million, even though the stock inched down by just 1.80%. The decline in the aggregate value is mainly due to several funds that unloaded substantial positions. Among them, Cliff Asness‘ AQR Capital Management sold 7.86 million shares and Jim Simons‘ Renaissance Technologies disposed of 7.22 million shares between January and March. Yamana Gold Inc. (USA) (NYSE:AUY)’s latest financial results were disappointing, with its net loss of $0.01 per share missing the consensus estimate of a profit of $0.01, while revenue of $403.50 million was $19.40 million less than expected.

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8. New Gold Inc. (USA) (NYSEMKT:NGD)

The number of funds from our database long New Gold Inc. (USA) (NYSEMKT:NGD) stood at 18 at the end of the first quarter, unchanged from three months earlier. However, the total value of their holdings jumped to $111.10 million from $65.97 million. Meanwhile, New Gold’s stock lost 15% during the first quarter.

The decline was mainly caused by bad news from its Rainy River gold project currently under development in Ontario, Canada. The project is expected to produce as much gold as all of New Gold Inc. (USA) (NYSEMKT:NGD)’s other mines, but the company reported its second cost overrun related to the site, saying that it would take three months longer to finish construction and that it would cost another $195 million to complete (in September 2016, it said that the project would require another $105 million). At the end of June, New Gold Inc. (NYSEMKT:NGD) reiterated its target to start gold production at the Rainy River project in September.

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7. AngloGold Ashanti Limited (ADR) (NYSE:AU)

During the first quarter, the number of investors long AngloGold Ashanti Limited (ADR) (NYSE:AU) declined by three to 18, while the aggregate value of their positions dropped to $246.91 million from $318.87 million. AngloGold Ashanti Limited (ADR) (NYSE:AU) is based in South Africa, but also has mines in other African countries, Australasia and the Americas. Last month, the company said that it may eliminate 8,500 jobs in South Africa as part of a restructuring process, which will also see the halt of its unprofitable operations in the country.

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6. Eldorado Gold Corp (USA) (NYSE:EGO)

In Eldorado Gold Corp (USA) (NYSE:EGO), the number of bullish investors long the stock rose by two to 20 between January and March. At the same time, the total value of their holdings declined to $69.89 million from $87.43 million. The stock of the Toronto-based gold exploration and mining company has dropped by 23% since the beginning of the year.

In June, Eldorado Gold Corp (USA) (NYSE:EGO) provided an update on production estimates from its Kisladag mine in Turkey, the largest in the country. The company said that it expected to obtain 38,400 ounces of gold in the second quarter and 90,000 in the first six months of 2017, which meant that it would fail to reach it guidance of 230,000 to 245,000 ounces for 2017. Instead, Eldorado Gold Corp (USA) (NYSE:EGO) expects to produce between 180,000 and 210,000 ounces at Kisladag this year.

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5. Kinross Gold Corporation (USA) (NYSE:KGC)

Next up on our list of the 10 best gold stocks to buy right now is Kinross Gold Corporation (USA) (NYSE:KGC), in which 23 funds from our database held shares heading into the second quarter, unchanged from the end of 2016. However, the value of those funds’ positions fell by 10.41% to $410 million. The company’s stock has gained 31% year-to-date, boosted by strong first-quarter results. Kinross Gold Corporation (USA) (NYSE:KGC) posted EPS of $0.02, which was in-line with estimates, but its revenue of $796.10 million beat analysts’ expectations by $16.70 million. It also reaffirmed its production guidance for 2017, having said that it expects to produce between 2.50 million and 2.70 million gold equivalent ounces.

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4. Agnico Eagle Mines Ltd (USA) (NYSE:AEM)

The number of investors tracked by us long Agnico Eagle Mines Ltd (USA) (NYSE:AEM) dropped by three to 23 during the first quarter, while the total value of their holdings fell by 20% to $264.90 million. Agnico Eagle Mines Ltd (USA) (NYSE:AEM)’s shares have inched up by 7% since the beginning of the year. The company also paid a dividend of $0.10 per share for the first quarter, which gives its stock a yield of 0.90%. The company’s first-quarter financial report also beat expectations, with EPS of $0.28 and revenue of $547.50 million beating the consensus estimates by $0.17 and $35.70 million, respectively.

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3. Goldcorp Inc. (USA) (NYSE:GG)

There were 24 funds in our database that held $147.73 million worth of Goldcorp Inc. (USA) (NYSE:GG)‘s stock at the end of March, versus 25 funds with stakes worth $214.72 million a quarter earlier. Last month, GoldCorp Inc. (USA) (NYSE:GG) reached an agreement to sell its 21% minority interest in the San Nicolas copper-zinc project in Mexico to Teck Resources (NYSE:TECK). Following the acquisition, worth $50 million, Teck will have 100% ownership of the project. For GoldCorp Inc. (USA) (NYSE:GG), the deal represents another step in its plan to optimize its asset portfolio by selling its non-core assets.

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2. Newmont Mining Corp (NYSE:NEM)

In Newmont Mining Corp (NYSE:NEM), 32 investors held long positions at the end of March, compared to 34 a quarter earlier. Subsequently, the total value of their positions dropped to $427.67 million from $676 million.

In June, Raymond James initiated coverage on Newmont Mining Corp (NYSE:NEM) with an ‘Outperform’ rating and $43 price target. The firm’s analysts believe that the company is succeeding in optimizing its portfolio and has a strong balance sheet. In addition, Newmont Mining Corp (NYSE:NEM), which is the largest gold producer in the U.S and the only gold mining stock in the S&P 500, has recently retired its 1.625% senior notes worth $575 million, which expired on July 15. Following the withdrawal of the senior notes, Newmont Mining Corp (NYSE:NEM)’s debt stands at slightly over $4 billion, with the bulk of it (around 85%) not due before 2022.

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1. Barrick Gold Corp (USA) (NYSE:ABX)

In Barrick Gold Corp (USA) (NYSE:ABX), 36 funds tracked by Insider Monkey held long positions worth $997.24 million, down from 37 funds with stakes worth $1.46 billion a quarter earlier.

Barrick Gold Corp (USA) (NYSE:ABX)’s stock plunged at the end of April as the company reported lower-than-expected results for the first quarter and reduced its production guidance for 2017. The lower guidance came after Barrick Gold Corp (USA) (NYSE:ABX)’s operations at its Veladero gold mine were restricted following a cyanide spill in March. The restrictions were lifted in June, but Barrick still has to complete some improvements before resuming the addition of cyanide to Veladero’s leach pad. In addition, Barrick Gold Corp (USA) (NYSE:ABX) has recently found itself in the middle of a dispute with the Tanzanian government over mining taxes in the country.

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That wraps up our list of the 10 best gold stocks to buy right now. Shares your thoughts on gold stocks with our readers in the comments below.

Disclosure: None