In this article, we will look at the 10 Cheap Gold Stocks to Invest In Right Now.
The Insatiable Demand for Gold Across the Globe
The World Gold Council said in its annual report that the global demand for gold hit a record high in 2024, fueled by investment demand growth and robust central bank purchases. Total gold transactions reached 4,974 tons in 2024, up from 4,899 tons in 2023, including over-the-counter (OTC) investments. Central banks are exhibiting an “insatiable” appetite for gold. The Council said they have attained a significant milestone, maintaining a continuously solid pace of gold purchases. The buying exceeded 1,000 tons for the third consecutive year in 2024.
The National Bank of Poland took the lead as the largest net central bank gold purchaser, adding 90 tons to its reserves. The Central Bank of Turkey added 75 tons, making it the second-largest net purchaser of gold among the world’s central banks. The Reserve Bank of India took the third spot with consistent gold purchases every month, except December. Gold demand in India rose after the government slashed gold import duties, bringing them down to 6% from 15%. In addition, gold investment demand increased across all ASEAN markets in 2024, with Malaysia, Indonesia, Singapore, and Thailand reflecting double-digit year-over-year increases.
CNBC reported that Shaokai Fan, global head of central banks at the World Gold Council, said the following about the situation:
“In 2024, global gold demand surged to a new quarterly high and a record annual total bolstered by heightened geopolitical and economic uncertainties.”
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Are Overall Investments in Gold Increasing?
The annual overall investments in gold are experiencing an increase, rising to 25% and hitting a four-year high of 1,180 tons. This growth was primarily attributed to gold exchange-traded funds. CNBC reported that the demand for gold coins and bars remained firm, boosted by growing demand from India and China. The World Gold Council report said that Chinese investors “faced a dearth of alternative assets in which to invest.” Therefore, the significant factors that supported investors’ inclination toward gold included persistent equity market volatility, domestic economic uncertainty, and record-low government bond yields.
In addition to regional increases in gold investments, OTC investments also remained stable in 2024. OTC transactions occur between two parties directly instead of trading managed by an exchange. The Council said that the demand reflects attempts by individuals with high net worth to hedge economic and geopolitical risks.
The Gold Jewelry Sector and the 2025 Gold Outlook
In contrast to the demand for gold, the jewelry sector showed an opposite scenario in terms of demand. Consumption in the jewelry sector fell 11% year-over-year, primarily pressured by higher prices. The report showed and CNBC reported that this sector was the only outlier, as other sectors gained. According to the Council’s analysts, with consumer spending power pressured by soft economic growth and rising prices, demand for gold jewelry is anticipated to stay weak in 2025. CNBC reported that Louise Street, World Gold Council senior markets analyst, gave the following 2025 outlook for the sector:
“In 2025, we expect central banks to remain in the driving seat and gold ETF investors to join the fray, especially if we see lower, albeit volatile interest rates.”
The report also said that overall investment demand is expected to remain healthy in 2025, with anticipated lower interest rates to slash the opportunity costs of holding gold. With these trends in view, let’s look at the 10 cheap gold stocks to invest in right now.
Drills extracting gold from a gold mine, revealing the company’s gold mining operation.
Our Methodology
We sifted through stock screeners, online rankings, and ETFs to compile a list of gold stocks with forward P/E less than 15. We then selected the top 10 with the highest number of hedge fund holders as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Cheap Gold Stocks to Invest In Right Now
10. Equinox Gold Corp. (NYSEAMERICAN:EQX)
Forward P/E: 7.39
Number of Hedge Fund Holders: 20
Equinox Gold Corp. (NYSEAMERICAN:EQX) is a Canadian mining company operating in the Americas through eight gold mines. Its operating mines include the Aurizona Gold Mine, Fazenda Gold Mine, Santa Luz Gold Mine, RDM Gold Mine, Los Filos Gold Mine, Castle Mountain Gold Mine, Mesquite Gold Mine, and Greenstone Gold Mine. The company’s development projects include the Greenstone Project, Los Filos Expansion, Castle Mountain Expansion, and Aurizona Expansion.
2024 was a strong year for Equinox Gold Corp. (NYSEAMERICAN:EQX), with fiscal Q4 2024 production of approximately 214,000 ounces and sales of approximately 218,000 ounces. This marks the highest quarterly gold production in the company’s history. Cash cost per ounce sold in fiscal Q4 was $1,458 per ounce, its lowest quarterly cash cost in the year.
Equinox Gold Corp. (NYSEAMERICAN:EQX) also finished 2024 with record annual gold production of approximately 622,000 ounces and sales of 623,000 ounces at a cash cost of $1,598 per ounce. These trends reflect the company’s strong operations, giving it the 10th spot on our list of the 10 cheap gold stocks to invest in right now.
9. SSR Mining Inc. (NASDAQ:SSRM)
Forward P/E: 7.59
Number of Hedge Fund Holders: 21
SSR Mining Inc. (NASDAQ:SSRM) operates, develops, explores, and acquires metal resource properties in the Americas and Turkiye. It operates through the Copler, Marigold, Seabee, Puna, and the Exploration, Evaluation, and Development Properties business segments. Sites. The Copler, Marigold, Seabee, and Puna segment encompasses its four operating mine sites. SSR Mining Inc. (NASDAQ:SSRM) produces gold doré, along with silver, lead, copper, and zinc concentrates.
The company reported solid operating results for the fiscal year 2024, experiencing year-over-year growth in its consolidated reserves and a significant strategic announcement with the acquisition of Cripple Creek and Victor Mine from Newmont. Its consolidated reserves totaled 8 million gold equivalent ounces at the end of 2024, a 3% growth over 2023 after mine depletion, reflecting the success of the company’s resource development drilling.
In fiscal Q4 2024, SSR Mining Inc. (NASDAQ:SSRM) reported net income attributable to shareholders of $5.6 million, while adjusted net income attributable to SSR Mining was $21.3 million. As of December 31, 2024, the company has a cash and cash equivalent balance of $387.9 million and total liquidity of $887.5 million.
