According to a report by the World Gold Council published on December 13, gold is on track for its strongest annual performance in more than a decade, with prices rising 28% year-to-date through November 2024. This surge has been fueled primarily by robust central bank purchases and heightened investor demand.
Looking towards 2025, the outlook for gold is shaped by a complex interplay of interest rates, economic growth, and global risks. The US Federal Reserve is expected to implement 100 basis points of rate cuts by year-end, and European central banks may follow suit with similar reductions. These actions are likely to provide a supportive environment for gold. However, potential challenges such as trade wars, rising inflationary pressures, and disruptions to supply chains could weigh on the metal’s performance. The Federal Reserve’s actions will play a central role in determining gold’s direction in 2025. Historically, gold has shown strong gains in the initial phases of rate-cutting cycles, averaging a 6% increase during the first six months.
Global economic conditions, particularly in Asia, also play a pivotal role in gold’s demand. China and India, which collectively account for more than 60% of annual gold demand excluding central banks, remain critical to the metal’s long-term prospects. In China, gold demand will hinge on consumer confidence and the broader economic outlook, which may be influenced by government stimulus measures and trade policy developments. India, on the other hand, is already well-positioned with strong economic growth of above 6.5%. Central banks have been net buyers of gold for nearly 15 years, a trend driven by the metal’s role as a long-term store of value and a hedge against geopolitical and financial risks. In 2024, central bank purchases, though slightly below record levels, remained robust, contributing an estimated 7%-10% to gold’s price increase. The report forecasts that central bank demand in 2025 will exceed the long-term average of 500 tonnes, further supporting gold prices. However, a significant slowdown in purchases could introduce downward pressure.
In an interview with CNBC on December 3, Ross Beaty, Chair of Equinox Gold Corporation, discussed the current and future prospects of the gold market. Beaty emphasized that all the bullish factors driving the strong performance of gold in 2024 are still intact, including a strong dollar, inflation outlook, and a favorable gold supply. He is optimistic about gold’s performance in 2025, expecting another excellent year for the precious metal.
However, Beaty noted a puzzling disconnect between the rising gold prices and the flat or declining performance of gold equities. Beaty, who has been involved in the gold sector for nearly 40 years, said that he has never seen something like this and this anomaly will likely correct itself in 2025. He emphasized that there is no reason why the gold price will decline and that it means there will be a great bull market in gold equities in 2025.
Beaty also addressed the potential for further consolidation in the gold mining sector. He highlighted that the mining industry, particularly gold mining, is inherently acquisitive due to the natural decline of mines over time. 2024 saw significant M&A activity in the gold space, and Beaty expects this trend to continue.
Investing in gold has long been considered a reliable strategy for preserving wealth and hedging against economic uncertainties. Beyond physical gold, many investors turn to gold stocks, which offer exposure to the precious metal while benefiting from the potential for growth in mining operations and technological advancements. With that in context, let’s take a look at the 12 most promising gold stocks according to hedge funds.
A man, dressed in protective gear, holding a golden nugget freshly extracted from an underground mining shaft.
Our Methodology
To compile our list of the 12 most promising gold stocks according to hedge funds, we used Finviz and Yahoo stock screeners to find the 30 largest companies that are involved in the production, extraction, processing, or sale of gold. We then used Insider Monkey’s Hedge Fund database to rank 12 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? 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).
12 Most Promising Gold Stocks According to Hedge Funds
12. Gold Fields Limited (NYSE:GFI)
Number of Hedge Fund Investors: 22
Gold Fields Limited (NYSE:GFI) is a prominent global gold mining company with a diverse portfolio of assets located in South Africa, South America (Chile and Peru), Ghana, Australia, and Canada. The company’s world-class asset base is supported by over 20 years of gold reserves.
Gold Fields Limited (NYSE:GFI) is focusing on addressing operational challenges that affected its production in the first half of 2024. These challenges were primarily due to issues at the South Deep mine in South Africa, the Gruyere mine in Australia, and delays in ramping up the Salares Norte project in Chile. In Q3, Gold Fields Limited (NYSE:GFI) produced 510,000 ounces of gold, which is an improvement from 454,000 ounces in the second quarter but a decline compared to 542,000 ounces in the same quarter of the previous year. Similarly, the company’s All-in sustaining costs (AISC) for the quarter were $1,694 per ounce, down from $1,751 per ounce in the second quarter but higher than $1,381 per ounce in Q3 of the previous year. The company aims to expand its production by ramping up operations at its new Salares Norte mine in Chile, alongside advancements in existing mines such as South Deep where they’ve seen significant production increases through improved stope availability and drilling techniques.
On November 6, Reuters reported that Gold Fields Limited (NYSE:GFI) may consider selling its smaller mines in Ghana and Peru to concentrate on its larger operations. CEO Mike Fraser indicated that the company is simultaneously exploring new mineral discoveries at these sites to enhance their value. Furthermore, Gold Fields Limited (NYSE:GFI) is also actively developing projects from their recent acquisition of Osisko Mining to boost production in the future.
11. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Investors: 23
Wheaton Precious Metals Corp. (NYSE:WPM) is a leading precious metals streaming company with a robust portfolio of long-life, low-cost assets. Through its streaming model, the company secures the right to purchase a portion of the metals produced by a mine in exchange for an upfront payment and additional payments upon metal delivery.
Wheaton Precious Metals Corp. (NYSE:WPM) is strategically expanding its portfolio through partnerships and accretive transactions. In Q3, the company announced the expansion of its existing stream on Rio2’s Phoenix project with an additional $100 million investment. The company also entered a new $625 million gold stream agreement on Montage’s Kona project in Côte d’Ivoire, which is one of the highest-quality gold projects in Africa with a 16-year mine life. On December 5, the company secured a $175 million streaming deal with Allied Gold for the Kurmuk project in Ethiopia. Under this agreement, Wheaton Precious Metals Corp. (NYSE:WPM) will make upfront payments in four installments during the construction phase and receive 6.7% of payable gold until 220,000 ounces are delivered, after which it will purchase 4.8% of payable gold for the remainder of the mine’s life. This deal will add 180,000 ounces of proven and probable mineral gold reserves, 20,000 ounces of inferred gold resources, and 30,000 ounces of measured and indicated mineral gold resources to the company’s portfolio.
Wheaton Precious Metals Corp. (NYSE:WPM) is also advancing several development projects that are expected to commence gold production within the next year, including Blackwater, Goose, PlatReef, and Mineral Park. These projects are anticipated to drive a significant increase in gold production, with a growth rate of approximately 40%, exceeding 800,000 ounces annually by 2028.
10. New Gold Inc. (NYSEAMERICAN:NGD)
Number of Hedge Fund Investors: 23
New Gold Inc. (NYSEAMERICAN:NGD) is a leading intermediate gold mining company with a diverse portfolio of high-quality assets in North America. The company operates two cornerstone mines: Rainy River in Ontario, Canada, and New Afton in British Columbia, Canada.
New Gold Inc. (NYSEAMERICAN:NGD) focused on exploration to unlock additional value and extend the mine life of its operations. At Rainy River, the company has identified potential opportunities in the main pit and some smaller satellite pits. These opportunities could further extend the open pit mine life and keep capital investment to a minimum. At New Afton, the company is optimizing C-Zone, the fourth block cave at the New Afton mine, and advancing the technical study of the East extension, which has the potential to add a new high-grade zone to the eastern section of the mine.
New Gold Inc. (NYSEAMERICAN:NGD) is also advancing several key projects that will significantly enhance its production capacity and cost efficiency. At C-Zone, the company has completed the commissioning of the gyratory crusher and conveyor system to eliminate truck haulage. At Rainy River Mine, the company is focusing on the development of the Underground Main Zone, the second sector in the mine, which is much larger than Intrepid. The Underground Main Zone is expected to start production in the first half of 2025 and ramp up to 5,500 tonnes of gold ore per day by 2027.
9. Coeur Mining, Inc. (NYSE:CDE)
Number of Hedge Fund Investors: 28
Coeur Mining, Inc. (NYSE:CDE) is a diversified precious metals producer primarily focused on the extraction and production of silver and gold. The company operates four key mines: Rochester in Nevada, Palmarejo in Mexico, Kensington in Alaska, and Wharf in South Dakota. On October, 4, Coeur Mining, Inc. (NYSE:CDE) announced the acquisition of SilverCrest Metals, upon completion, the combined entity is expected to produce over 432,000 ounces of gold annually, with an estimated EBITDA of $700 million and free cash flow of approximately $350 million in 2025.
To drive growth, Coeur Mining, Inc. (NYSE:CDE) is focused on optimizing its existing operations to maximize efficiency and reduce costs. At the Rochester mine, the company has made significant strides in production and cost reduction. In Q3, the Rochester mine’s gold production increased by approximately 20% compared to the previous quarter, driven by improved operational metrics and optimization efforts. The company is also refining processes, such as particle size optimization, to enhance the mine’s long-term performance.
Coeur Mining, Inc. (NYSE:CDE) is also actively focusing on reducing its debt levels. The company generated $69 million in free cash flow in Q3, which was primarily used to pay down its revolving credit facility. This has led to a significant reduction in the net debt-to-EBITDA ratio, which is now below 2x for the first time in three years. Looking ahead, Coeur Mining, Inc. (NYSE:CDE) plans to continue deleveraging and is well-positioned to fully repay the revolver by mid-2025.
8. Pan American Silver Corp. (NYSE:PAAS)
Number of Hedge Fund Investors: 29
Pan American Silver Corp. (NYSE:PAAS) is a leading precious metals mining company with a focus on silver and gold production. The company operates in North, Central, and South America, and operates a diversified portfolio of high-quality mines and exploration projects.
Exploration remains a core focus for Pan American Silver Corp. (NYSE:PAAS), with significant efforts directed toward expanding existing resources and discovering new deposits. The company’s recent mineral resource update highlighted the potential of its Jacobina mine, where exploration discovered 1.2 million ounces of new gold-inferred mineral resources. Furthermore, Pan American Silver Corp. (NYSE:PAAS) is actively investing in capital projects to enhance its operational efficiency and expand its production capacity. One of the key projects is the new Pace plant at its Bell Creek mine in Timmins, Ontario. This plant aims to reduce tailings disposal costs and increase ore recovery, thereby improving overall profitability. At Jacobina Mine, the company is investing in upgrading the plant facility infrastructure and in a study to maximize Jacobina’s long-term economic and growth potential.
Pan American Silver Corp. (NYSE:PAAS) is also looking for strategic acquisitions and partnerships to strengthen its portfolio and enhance shareholder value. The company is in discussions with several large companies interested in partnering on projects discovered in the past decade. These partnerships could provide the necessary capital and expertise to bring these projects into production.
7. Royal Gold, Inc. (NASDAQ:RGLD)
Number of Hedge Fund Investors: 30
Royal Gold, Inc. (NASDAQ:RGLD) is a leading precious metals royalty and streaming company, with a diverse portfolio of high-quality assets across North America, South America, and other key mining regions. The company was founded in 1981 and is headquartered in Denver, Colorado.
Royal Gold, Inc. (NASDAQ:RGLD) is actively pursuing new opportunities to expand its portfolio. The rising gold price environment has brought forward a number of attractive projects, and the company is well-positioned to capitalize on these opportunities due to its strong balance sheet and liquidity. As of September 30, Royal Gold, Inc. (NASDAQ:RGLD) is debt-free and has a $1 billion revolving credit facility combined with approximately $160 million of working capital, which makes up approximately $1.16 billion in available liquidity. This financial strength allows the company to be highly competitive in the market for new royalty and streaming agreements, particularly in safe jurisdictions and with quality counterparties.
Royal Gold, Inc. (NASDAQ:RGLD) is also focused on several key strategies to drive continued growth and value creation. One of the primary areas of focus is the organic expansion of its existing portfolio. The company is working closely with operators such as Newmont at Penasquito and Kinross at Great Bear to optimize production and extend mine life. These initiatives are expected to contribute significantly to the company’s revenue and cash flow in the coming years.
6. Alamos Gold Inc. (NYSE:AGI)
Number of Hedge Fund Investors: 30
Alamos Gold Inc. (NYSE:AGI) is a Canadian-based intermediate gold mining company that operates the Young-Davidson, Magino, and Island Gold mines in northern Ontario, Canada, and the Mulatos mine in Sonora State, Mexico. In July, Alamos Gold Inc. (NYSE:AGI) completed the acquisition of Argonaut Gold, which brought the Magino mine into its portfolio.
Alamos Gold Inc. (NYSE:AGI) is now focused on the integration of Magino with the existing Island Gold mine, which is expected to create one of Canada’s largest, and most profitable gold mines. The combined operation is anticipated to significantly boost the company’s production capabilities, with the potential to process ore from both mines through a centralized mill. The company is also advancing the construction of a new shaft, paste plant, and haul road to connect Island Gold with the Magino mill, which will further enhance operational efficiency and reduce costs. Additionally, the Magino mill is being expanded to process up to 12,400 tonnes of ore per day, supporting the increased production from both mines.
Alamos Gold Inc. (NYSE:AGI) is heavily investing in the expansion and optimization of its existing mines to increase production and reduce costs. A significant focus is on the Phase III expansion at Island Gold, which is expected to be completed in the first half of 2026. This expansion will increase the mine’s production capacity to approximately 700,000 ounces of gold per year and lower all-in-sustaining costs to approximately $1,150 per ounce. Alamos Gold Inc. (NYSE:AGI) is also focusing on exploration to expand its mineral reserves and resources. In Q3, the company allocated its largest exploration budget to date, focusing on high-potential targets within its existing districts.
5. Franco-Nevada Corporation (NYSE:FNV)
Number of Hedge Fund Investors: 32
Franco-Nevada Corporation (NYSE:FNV) is a leading gold-focused royalty and streaming company with a diversified portfolio of precious metal and bulk commodity assets. The company’s business model is built on acquiring royalties and streams from mining operations, which provide a steady and predictable revenue stream. Franco-Nevada’s portfolio includes over 340 assets across North America, South America, Europe, and Africa.
To further enhance its growth, Franco-Nevada Corporation (NYSE:FNV) has been actively pursuing strategic acquisitions and new mine developments. The company has recently benefited from the contributions of the newly commissioned Tocantinzinho mine in Brazil and increased contributions in royalties from the recently completed Greenstone mine and the newly acquired Yanacocha royalty. These new assets are expected to drive stronger performance in the coming quarters, particularly in Q4. The company’s business development team is also evaluating a strong pipeline of potential precious metal streams and royalties.
Furthermore, Franco-Nevada Corporation (NYSE:FNV) is committed to operational excellence and continuous improvement across its portfolio. The company has been working closely with its operating partners to optimize performance and address any challenges.
4. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Investors: 41
Kinross Gold Corporation (NYSE:KGC) is a leading Canadian gold mining company with operations and projects spanning the United States, Brazil, Mauritania, Chile, and Russia. The company is recognized for its responsible mining practices and strong commitment to sustainability.
Kinross Gold Corporation (NYSE:KGC) is advancing several significant projects poised to drive future growth. A standout example is the Great Bear project in Ontario, Canada. The Preliminary Economic Assessment (PEA) published on September 10, estimates an annual production of approximately 500,000 ounces of gold at an impressive all-in sustaining cost of about $800 per ounce during the first eight years. The company is also progressing on the Lobo-Marte project in Chile, which holds the potential to become a long-life, low-cost asset with substantial production. The project is particularly appealing due to its high heap leach grade and low strip ratio, with baseline studies underway to further assess its viability.
Kinross Gold Corporation (NYSE:KGC) is also heavily investing in exploration to expand its resource base and drive future growth. At Round Mountain in the United States, the company is advancing Phase X, which has delivered encouraging results with multiple high-grade intercepts and strong widths. Exploration drilling has extended mineralization into lower areas of the resource, indicating potential for higher-margin mining. Similarly, exploration at the Curlew Basin has identified zones with robust mining widths and strong grades. Additionally, the company has made significant strides in reducing debt, repaying $650 million of a $1 billion term loan in 2024. This effort has considerably strengthened the balance sheet, reducing net debt to EBITDA from 1.7 times to 0.5 times by the end of Q3 2024.
3. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Investors: 42
Barrick Gold Corporation (NYSE:GOLD) is a global mining company engaged in the exploration, development, production, and sale of gold and copper. The company operates a diverse portfolio of high-performing mines located in regions such as Argentina, Canada, Africa, and the United States.
Barrick Gold Corporation (NYSE:GOLD) is leveraging its high-grade gold assets to boost production and profitability. Key drivers of the company’s growth include flagship operations like Nevada Gold Mines (NGM) in the United States, Pueblo Viejo in the Dominican Republic, and Kibali in the Democratic Republic of Congo. In Nevada, the company is investing heavily in infrastructure and equipment to modernize the Nevada Gold Mines complex for the next decade. This includes the expansion of the Gold Quarry roaster, a facility that processes gold concentrates through roasting, which has now achieved full capacity. These efforts aim to sustain and enhance production while maintaining cost efficiency.
Barrick Gold Corporation (NYSE:GOLD) is also prioritizing exploration to expand its gold reserves. The company’s near-mine exploration programs have successfully identified new opportunities close to existing infrastructure. Furthermore, the company is making strategic investments in various growth projects to secure its position as a leading gold producer in the future.
2. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Investors: 54
Agnico Eagle Mines Limited (NYSE:AEM) is a leading gold mining company with a strong presence in Canada, Australia, Mexico, and Europe. Founded in 1957, the company operates multiple high-quality mines, including Meadowbank, Meliadine, and Detour Lake in Canada, and is known for its disciplined approach to exploration and capital allocation.
Agnico Eagle Mines Limited (NYSE:AEM) is focusing on growing its resource base and extending the life of its existing mines through extensive exploration programs. The company has launched one of its largest exploration programs ever, with over 100 diamond drill rigs in operation across various sites. Notable exploration successes include the Eastward extension of the East Gouldie Zone at the Odyssey project in Quebec, and the discovery of high-grade mineralization at the Patch 7 zone in the Madrid deposit area at Hope Bay in Nunavut, Canada.
Additionally, the company has successfully extended the life of its Meadowbank and Meliadine mines through continuous operational improvements and exploration. Agnico Eagle Mines Limited (NYSE:AEM) is also advancing the development of the Odyssey mine, which is on track to become the largest underground gold mine in Canada by 2028. These discoveries have the potential to significantly enhance the company’s resource base and support future production growth. On December 6, Agnico Eagle Mines (NYSE:AEM) agreed to acquire O3 Mining at approximately $150.54 million. O3 Mining’s primary asset is its 100% owned Marban Alliance property, located near Val d’Or in the Abitibi region of Quebec, adjacent to Agnico Eagle Mines Limited’s (NYSE:AEM) Canadian Malartic complex.
Agnico Eagle Mines Limited (NYSE:AEM) is also focusing on cost control by maintaining stable operating costs despite rising gold prices, this has contributed to higher margins and strong financial performance. By doing so the company ensures that the benefits of higher gold prices are passed on to shareholders through dividends and share buybacks. Agnico Eagle Mines Limited (NYSE:AEM) is placing a strong emphasis on ESG principles, recognizing that long-term success is intrinsically linked to responsible and sustainable operations. This approach to sustainability ensures that the company can continue to operate in these regions for decades to come.
1. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Investors: 63
Newmont Corporation (NYSE:NEM), founded in 1916 and headquartered in Denver, Colorado, is the largest gold mining company in the world, with operations in multiple countries, including the Americas, Oceania, and Africa.
Newmont Corporation (NYSE:NEM) is actively reshaping its portfolio and organizational structure to drive future growth and enhance shareholder value. Following its 2023 acquisition of Newcrest Mining, Newmont Corporation (NYSE:NEM) has embarked on a strategic divestiture program aimed at shedding non-core assets and optimizing its portfolio. As of December 6, notable divestitures include the sale of the Eleonore gold mine in Quebec, the Musselwhite gold mine in Ontario, and the Cripple Creek and Victor gold mine in Colorado, which have collectively brought in over $3.9 billion in gross proceeds. The proceeds from these divestitures will be strategically reinvested to bolster Newmont Corporation’s (NYSE:NEM) core operations and financial health. The company has authorized a $3 billion stock buyback program through October 2026 and has made significant progress in reducing its debt, retiring approximately $500 million in 2024 and aiming to reach a targeted debt balance of $8 billion.
On the operational front, Newmont Corporation (NYSE:NEM) is also streamlining its corporate structure to improve efficiency and effectiveness. On December 9, Bloomberg reported that the company has laid off at least 10 senior managers and plans to merge several business units into three. This restructuring aims to streamline reporting and decision-making processes, reducing overhead costs and enhancing operational agility.
While we acknowledge the potential of Newmont Corporation (NYSE:NEM) to grow, our conviction lies in the belief that 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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