In this article, we discuss 10 Best Gold Stocks to Invest in for Portfolio Diversification.
Gold is one asset class that continues to captivate the financial markets, with prices rallying to record highs and showing no signs of slowing down. After powering to record highs of $2,790 an ounce last year, the precious metal is again edging higher, having powered through the $2900 level and on the cusp of the $3,000 psychological level.
The rally to record highs comes against escalating geopolitical tensions and economic uncertainty. While Israel has reached a cease-fire on the Gaza Strip, tensions are far from over with the ever-growing threat from Iran and the ongoing Russia-Ukraine conflict. Similarly, US President Donald has evoked economic uncertainty with a string of trade tariffs that threaten to plummet the global economy into disarray.
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“Central focus of the gold market continues to be the uncertainty in regards to the Trump tariff policies,” said David Meger, director of metals trading at High Ridge Futures.
China’s retaliatory measures against US tariffs are increasingly fueling safe-haven demand, exacerbated by the US threatening to hit Canada, Mexico, and Europe with similar tariffs. The geopolitical tensions and economic uncertainties are why analysts at Citi are optimistic about gold powering through the $3,000 an ounce level amid strong demand as a safe haven in times of turmoil and uncertainty.
As a result of Trump’s tariff threats, which have increased investor anxiety over global growth, trade wars, and high inflation, gold has already reached its seventh-record high this year. Gold’s explosive rally since December, according to Phillip Streible, chief market strategist at Blue Line Futures, may result in a self-fulfilling prophecy of additional price increases, which could cause the research firm to increase its forecast to about $3,250 or $3,500. Analysts at UBS share similar sentiments and expect a gold price rally to persist in 2025 to above the $3,000 an ounce level.
While data from the World Gold Council indicates that gold demand hit record highs of 4,974.5 metric tons last year, the buying momentum is unlikely to stop. Central banks are increasingly purchasing precious metals, which are seen as a solid store of value away from the dollar and other assets susceptible to heightened market volatility. Higher rates lessen the allure of the non-yielding asset, but historically, bullion has been seen as a hedge against inflation and geopolitical unpredictability.
“Gold prices could reach $3,000 this year due to the disruptive nature of the current U.S. administration creating market uncertainty and central banks potentially increasing gold purchases to diversify from U.S. dollar holdings,” Jim Wyckoff, a senior market analyst at Kitco Metals, said.
Gold provides stability during economic turbulence. Its adaptability and timeless appeal have increased its value over centuries. As market uncertainties persist, gold stocks are gaining popularity among investors due to their potential for higher prices and secure store of value.
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Our Methodology
To make the list of 10 best gold stocks to invest in for portfolio diversification, we scanned the US market and settled on the top gold companies with significant resource reserves. We then analyzed the stocks and settled on those with solid underlying fundamentals and tremendous potential as long-term investment plays. Finally, we ranked the stocks in ascending order based on the number of hedge fund holders.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Best Gold Stocks to Invest in for Portfolio Diversification
10. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Holders: 23
Wheaton Precious Metals Corp. (NYSE:WPM) primarily sells precious metals in North America, Europe, and South America. It produces and sells gold, silver, palladium, and cobalt deposits. Rather than running actual mines, Wheaton gives mining companies money to help them pay for some of the costs associated with mine development. In return, it can purchase a portion of the metal the mines produce at predetermined prices.
Wheaton Precious Metals Corp. (NYSE:WPM) makes a lot of money because it focuses on streaming. Wheaton pays dividends to shareholders and invests the funds in new ventures. With a flexible dividend policy, the company distributes dividends totaling over 25% of its revenue. Like a mining company, Wheaton is able to benefit from rising gold and silver prices thanks to its business model. It is a less risky method of investing in precious metals like silver because it takes on fewer risks and the possible cost overruns that come with physical mining.
Wheaton Precious Metals Corp. (NYSE:WPM) has over 20 long-term purchase agreements with 17 mining companies for precious metals and cobalt, with streaming agreements covering 19 operating mines and 9 development projects. Notable projects include Vale’s Salobo mine and silver streams on Glencore’s Antamina and Goldcorp’s Penasquito mines.
9. Coeur Mining, Inc. (NYSE:CDE)
Number of Hedge Fund Holders: 28
Coeur Mining, Inc. (NYSE:CDE) is a basic materials company that explores precious metals. It primarily explores gold, silver, zinc, and lead properties. While the stock was up by 152% in 2024, it’s already up by 13% for the year. The rally came as the company continued to report record production in all its operations, which drove a 21% increase in gold production in the third quarter.
Its gold production in the third quarter stood at 94,993 ounces, with 3 million ounces of silver production. Its profit margin received a significant boost as the cost to sales per gold and silver ounce dropped 12%, affirming operational efficiency. Coeur Mining, Inc. (NYSE:CDE) is positioned as a strong performer in the market with room to grow thanks to its growing operations and strategic initiatives.
Additionally, Coeur Mining, Inc. (NYSE:CDE) has moved to strengthen its long-term prospects with an agreement to buy SilverCrest Metals for $1.7 billion and gain access to the Las Chispas Mine. It is anticipated that the Las Chispas mine, one of the world’s most affordable and superior silver/gold operations, will yield 21 million ounces of silver per year.
8. Pan American Silver Corp. (NYSE:PAAS)
Number of Hedge Fund Holders: 29
Pan American Silver Corp. (NYSE:PAAS) engages in the exploration, mine development, and extraction of silver, gold, zinc, lead, and copper mines. The stock was on a roll, rallying 91% in 2024 as the company achieved its 2024 production guidance and entered 2025 with a record cash balance. The basic material company achieved 21.1 million ounces of silver and 892,000 ounces of gold. It also achieved its production targets on zinc, lead, and copper, further strengthening its revenue base.
The strong production was the catalyst behind Pan American Silver Corp. (NYSE:PAAS) achieving cash and short-term investment of $887.3 million. Consequently, Pan American Silver remains in a solid financial position to execute its strategic targets aimed at generating shareholder value in 2025. The company is increasingly investing in exploration activities to find new deposits and extend its current resources. It has already discovered 1.2 million ounces of new gold-inferred mineral resources at the Jacobina mine, which is expected to be a key driver of long-term value.
Pan American Silver Corp. (NYSE:PAAS) is actively investing in capital projects to increase its production capacity and operational efficiency. The new Pace plant at its Bell Creek mine in Timmins, Ontario, is one of the major initiatives. The plant should boost overall profitability by increasing ore recovery and lowering tailings disposal costs.
7. Alamos Gold Inc. (NYSE:AGI)
Number of Hedge Fund Holders: 30
Alamos Gold Inc. (NYSE:AGI) engages in the acquisition, exploration, development, and extraction of precious metals. It primarily explores gold deposits. After rallying by about 89% in 2024, the stock is already up by about 18% for the year, a gain that underlines why it is one of the best gold stocks to invest in now. The company offers an all-around mining investment opportunity.
It doubled its earnings and increased revenue by 41% in Q3. It also runs high-quality mines in regions that are anticipated to remain stable from a regulatory perspective. Additionally, Alamos Gold revealed that it had received significant approval from the Mexican government to start building its eagerly awaited Puerto Del Aire project.
In order to build one of Canada’s biggest and most lucrative gold mines, Alamos Gold Inc. (NYSE:AGI) is concentrating on integrating the Magino mine with the current Island Gold mine. With the potential to process ore from both mines through a centralized mill, the combined operation is expected to increase the company’s production capabilities greatly.
Backed by a solid pipeline of gold projects, Alamos Gold Inc. (NYSE:AGI) has been recognized as one of the top 30 performing stocks based on its dividend and share price performance. Its share price has increased by over 130% over the past three years, affirming its focus on operating a sustainable business.
6. Royal Gold, Inc. (NASDAQ:RGLD)
Number of Hedge Fund Holders: 30
Royal Gold, Inc. (NASDAQ:RGLD) acquires and manages precious metal streams, royalties, and related interests. It receives streams and royalty interests and finances projects, which primarily consist of gold, silver, copper, nickel, zinc, lead, and other metals. The company’s edge as one of the best gold stocks to invest in stems from its debt-free nature at the end of the third quarter. It also had access to a $1 billion revolving credit facility that it can use to strengthen its metals streams, royalties, and other interests. The Company owns interests in 175 properties On five continents, including 42 producing mines and 18 development-stage projects.
Additionally, Royal Gold, Inc. (NASDAQ:RGLD) sold about $36,600 ounces of gold at an average price of $2,662 per ounce at the end of last year. Likewise, the company is well positioned to take advantage of the favorable gold price environment, with prices above $2,900, as it had about 15,500 ounces of Gold as of the end of last year.
In addition, Royal Gold, Inc. (NASDAQ:RGLD) boasts of a highly diversified revenue base, having sold about 478,900 ounces of silver and 1,3000 tons of copper related to its streaming agreements for the three months ended December. It also entered the new year with about 338,400 ounces of silver from which it can profit from soaring prices.
5. Franco-Nevada Corporation (NYSE:FNV)
Number of Hedge Fund Holders: 32
Franco-Nevada Corporation (NYSE:FNV) is a gold-focused royalty and streaming company. It manages a portfolio focusing on precious metals, such as gold, silver, and platinum group metals. It also sells crude oil, natural gas, and natural gas liquids through a third-party marketing agent. While the company generates 75% of its revenue from gold and other precious metals, its competitive edge stems from its focus on royalties and streaming, reducing its risk exposure.
Consequently, gold companies do not face capital and operating cost overruns that plague mining companies. Therefore, it benefits from its mining partners doing the hard work in the exploration and production of gold. Royalties and streaming businesses function as specialized lenders, giving gold mining firms up-front funding for asset development.
Franco-Nevada Corporation (NYSE:FNV) has 432 projects in its portfolio, of which 118 are in production, 38 are in the advanced stage of development, and 276 are in the exploration stage. Likewise, streaming and royalty contracts expose it to a reliable and consistent cash stream that enables it to invest in new deals and pay dividends. The company has rewarded investors with dividends since going public in 2008. Its yield currently stands at 1.06%.
4. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 41
Kinross Gold Corporation (NYSE:KGC) acquires, explores, and develops gold properties in the United States, Brazil, Chile, Canada, and Mauritania. It was one of the best-performing gold stocks in 2024 rallying by 132%. The upward momentum shows no signs of slowing down, with the gold stock up by 22%, keeping up with gold prices powering through $2,900 an ounce.
In 2022, in reaction to the invasion of Ukraine, Kinross Gold Corporation (NYSE:KGC) sold its low-cost Russian operations and concentrated on mines in the Americas and West Africa. Additionally, it purchased the Great Bear project in Canada, which, if developed, could yield more than 500,000 ounces of gold per year for at least ten years. The restructuring drive and acquisition have strengthened the company’s gold reserves and positioned it in the gold mining industry.
Solid financial results amid high goods prices have catalyzed Kinross Gold Corporation’s (NYSE:KGC) higher edging. For starters, the company posted a 29% increase in revenue in Q3, with its gross profit more than doubling after a 103% gain to $645 million. Additionally, the company’s earnings grew 142% to $547.70 million, setting the stage to return significant shareholder value. Kinross Gold stock currently yields 0.99% on dividends, providing another avenue to generate passive income.
3. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 42
Barrick Gold Corporation (NYSE:GOLD) is one of the best gold stocks to invest in as it engages in the exploration and development of properties in Canada and internationally. The company operates tier-one mining assets that can produce more than 500,000 ounces of gold annually, backed by low-cost operations and 10-year tenure.
Barrick Gold Corporation (NYSE:GOLD) can continue to produce gold at a comparatively steady rate of increase for the foreseeable future by concentrating on running big mines with substantial reserves left. By 2030, the company anticipates producing an average of about 7 million ounces of gold equivalent, a 30% increase over 2023 levels.
The company delivered solid third-quarter results, with gold production in line with the previous quarter. Net earnings per share rose 33% as operating cash flow totaled $1.18 billion and free cash flow $444 million. With the help of the Lumwana Super Pit expansion project and the Reko Diq copper-gold project, the company intends to significantly increase its mineral reserves net of depletion by 2024.
Barrick Gold Corporation (NYSE:GOLD) is currently expanding production operations at its Donlin Gold, Fourmile, Lumwana Super Pit, Reko Diq, Goldrush, and the Pueblo Viejo mines. The project should strengthen the company’s gold reserves, positioning it to benefit from soaring prices.
By 2028, the Goldrush mine could produce 400,000 gold ounces annually. The 100% Barrick-owned Fourmile mine, which borders Goldrush, is producing grades twice as high as Goldrush and is expected to develop into another Tier One mine. In its second stage of development, the Reko Diq copper-gold project in Pakistan is expected to yield 500,000 ounces of gold and 400,000 tons of copper per year.
2. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 54
Agnico Eagle Mines Limited (NYSE:AEM) is a basic materials company that produces gold through its flagship assets in the US, Canada, Mexico, and Australia. The company also explores copper, silver, zinc, and lead. The stock more than doubled in value last year as it rallied by 109% in response to gold prices gaining more than 30%. Similarly, the stock is trading at all-time highs in response to investors reacting to strong operational results and strategic initiatives that have strengthened its growth metrics.
Agnico Eagle Mines Limited (NYSE:AEM) delivered record-breaking financial and operating results for its third quarter, affirming its operational efficiency amid rising gold prices. With a trailing twelve-month cash flow of $1.88 billion, the company’s ability to sustain high production levels and boost gold sales has led to robust free cash flow generation. Agnico Eagle reported $563 million in free cash flow in the third quarter.
The development of Agnico Eagle’s Detour Lake mine is a key factor in the company’s prospects for future growth. In order to prolong the mine’s life until 2054, the company has revealed plans to boost gold production at this location to 1 million ounces annually by 2030. Because of its advantageous location, pre-existing infrastructure, and the operational team’s experience, Agnico Eagle’s expansion project is considered low-risk and expected to generate significant long-term value.
Additionally, Agnico Eagle Mines Limited (NYSE:AEM) has moved to strengthen its long-term prospects by acquiring O3 Mining. With the acquisition, the company gains access to a key gold asset in the Marban Alliance property. The property is believed to have about 1.7 million ounces of gold.
1. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 63
Newmont Corporation (NYSE:NEM) is a basic materials company that engages in the production and exploration of gold. While the stock was up by 16% in 2024, it’s already up by 34% for the year. The rally comes on the company cementing its position as one of the best gold stocks to invest in as it continues to take advantage of the soaring gold prices. Given that gold represents 80% of the company’s revenue, it is well-positioned to benefit from surging prices.
In the third quarter, Newmont Corporation (NYSE:NEM) achieved $4.6 billion in revenue, representing an 85% year-over-year increase. The increase came from the company selling gold at an average price of about $2600 an ounce. Fast forward, gold prices have powered through the $2,800 an ounce level, affirming how the company’s revenue is poised to receive a significant boost.
In addition to taking advantage of rising gold prices, Newmont Corporation (NYSE:NEM) has also embarked on a restructuring drive to strengthen its long-term prospects. It is executing a divestiture strategy focusing on the sale of non-core assets, such as the Cripple Creek & Victor operation in Colorado and the Musselwhite mine in Ontario, Canada. The sale is part of an effort that seeks to bolster margins. Additionally, the company has initiated a $2 billion share repurchase program as part of an effort to return value to shareholders.
While we acknowledge the potential of Newmont Corporation (NYSE:NEM), our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NEM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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