In this article, we will be taking a look at the 14 most promising gold stocks now.

Global Gold Market Dynamics and Investment Trends in 2023

The global gold market is a vast and multifaceted industry, with a diverse range of participants and investment opportunities. The total above-ground stock of gold is estimated to be around 209,000 tons, worth approximately $12 trillion. Central banks hold around 35,715 tonnes of gold, accounting for 16% of total global allocated reserves, second only to the US dollar and the euro. Investors view gold as a safe-haven asset and a hedge against economic uncertainties. In 2023, global investment demand for gold (bars, coins, and ETFs) was the lowest since 2014, primarily due to outflows from gold ETFs.

Gold prices increased 13% in 2023 as investors considered it a hedge against inflation in the face of economic turmoil. Driven by investors, industry, and central banks, demand reached 4,899 metric tons. Demand was further stimulated by the SVB bankruptcy and the Middle East tensions, which resulted in large rises in gold equities. According to Invesco and Bloomberg reports, sovereign wealth funds and central banks, who oversee $21 trillion in assets, significantly raised their gold holdings.

Gold-tracking ETFs showed robust gains in 2023: SPDR’s ETF rose 12% YTD, and iShares’ ETF increased by 12.1% YTD. Analysts attribute gold’s recent success to favorable market conditions likened to a “Goldilocks scenario,” marked by ideal circumstances for investors.

Gold Stocks and Their Relationship to Gold Prices

Investors are increasingly turning to gold stocks to diversify their portfolios amidst economic uncertainties. According to a report by State Street Global Advisors, gold has historically offered positive risk-adjusted returns, averaging a 7.7% compound annual growth rate in USD terms since August 15, 1971, making it a sought-after safe-haven asset.

A VanEck report highlighted that gold prices directly influence the performance of gold stocks, underscoring the correlation between the two.

“Gold stocks are supposed to outperform the metal when gold’s price rises. Their leverage to gold justifies outperformance. For any given move in the price of gold, the operating cash flow generated by these companies increases (or decreases) by a much greater percentage. Take Alamos (8.06% of Fund net assets), for example. The company estimates that a 5% increase in the price of gold (about a+$100/oz move), would translate into an increase of almost 30% in their free cash flow in 2024. “

The VanEck report noted a recent disconnect between gold prices and gold stocks in the past two years, primarily due to central bank buying and other temporary factors.

Gregory Shearer, Head of Base and Precious Metals Strategy at J.P. Morgan echoed the prevailing market sentiment regarding gold.

“Across all metals, we have the highest conviction on a bullish medium-term forecast for both gold and silver throughout 2024 and into the first half of 2025, though timing an entry will continue to be critical. At the moment, gold still appears quite rich relative to underlying rates and foreign exchange (FX) fundamentals, and still looks vulnerable to another modest retreat in the near-term, as Fed rate cut expectations are now running earlier than our forecasts.”

A close-up of a hand placing a block of gold into a safe.

Our Methodology 

Our methodology involves sorting gold stocks based on their upside potential of at least 20%. Upside potential represents the likelihood, in percentage terms, that a stock will reach a specified price target within the next 12 months, as estimated by analysts. This calculation is derived by subtracting the consensus price target from the current stock price, dividing the result by the current price, and multiplying by 100. Additionally, for each stock we shared the number of bullish hedge fund positions, but the rankings are purely based on each stock’s upside potential. A higher upside potential corresponds to a higher rank for the stock in our analysis.

Before talking about the most promising gold stocks, we noticed that there is some interest towards Gold IRAs among investors. While these products may offer some tax advantages and diversification, we don’t endorse any particular company in this space. The IRS allows holding certain precious metals, including gold, silver, platinum, and palladium, in a self-directed IRA, however, gold IRAs might not be suitable for all investors. They typically have higher fees compared to traditional IRAs and involve additional storage costs.

Now let’s take a look at some of the most promising gold stocks now.

14. Centerra Gold Inc. (NYSE:CGAU)

Upside Potential: 62.48% 

Number of Hedge Funds: 16 

Centerra Gold Inc. (NYSE:CGAU) is a Canadian gold mining company with operations in North America and Turkey. Its flagship projects are the 100% owned Mount Milligan gold-copper mine in British Columbia, Canada, and the Öksüt gold mine in Turkey. Centerra Gold has received overwhelmingly positive recommendations from analysts, with a consensus rating of “Strong Buy.” Six Wall Street analysts have set a 12-month price objective forCenterra Gold Inc. (NYSE:CGAU) over the last three months, ranging from $8.00 to $9.45, with an average of $8.71. This implies a price increase of 28.66% over the current $6.77.

As of Q1 2024, 16 hedge funds held positions in Centerra Gold Inc. The fund with the largest stake was Condire Investors, holding 6.19 million shares, which comprised 4.94% of their portfolio.

Centerra Gold Inc. (NYSE:CGAU) recently reported its first-quarter 2024 financial results, and the numbers are impressive. Their revenue stood at $321.2 million in Q1 2034, beating analysts’ estimates of $309.5 million and their earnings per share (EPS) stood at $0.12, surpassing the consensus estimate of $0.09. Their net income was reported to be $26.4 million which is a significant improvement from the net loss of $8.2 million in Q1 2023. Their operating cash flow was $92.1 million, up 37% year-over-year, and free cash flow stood at $48.6 million which is a substantial increase from $12.3 million in Q1 2023.

13. Sandstorm Gold Ltd. (NYSE:SAND)

Upside Potential: 62.92% 

Number of Hedge Funds: 16  

Sandstorm Gold Ltd. (NYSE:SAND) is a leading gold royalty and streaming company that provides upfront financing to gold mining companies in exchange for future metal delivery or revenue sharing.  Sandstorm Gold has received overwhelmingly positive recommendations from analysts, with a consensus rating of “Strong Buy.” Eight Wall Street analysts have set a 12-month price objective for Sandstorm Gold during the last three months, ranging from $5.50 to $11.00 on average. This represents a 34.50% increase over the $5.42 current price.

Sandstorm Gold Ltd. (NYSE:SAND) has a market capitalization of $1.61 billion with 297.83 million shares outstanding. As of Q1 2024, 16 hedge funds held positions in Sandstorm Gold. The fund with the largest stake was Horizon Asset Management, holding 4.42 million shares, which comprised 0.43% of their portfolio.

Sandstorm Gold Ltd. (NYSE:SAND) reported impressive financial results for the first quarter of 2024. Their revenue stood at $42.3 million, up 18% year-over-year, and net income was $15.2 million, up 27% year-over-year. In the same period, their earnings per share (EPS) were $0.05, up 25% year-over-year and cash flow from operations stood at $27.1 million, up 22% year-over-year.

12. Seabridge Gold Inc. (NYSE:SA)

Upside Potential: 69.72% 

Number of Hedge Funds: 15 

Seabridge Gold Inc. (NYSE:SA) is a Canadian mineral exploration company focused on acquiring, exploring, and developing gold properties. Its principal assets are the KSM and Iskut projects located in British Columbia, Canada. The KSM project is one of the largest undeveloped gold/copper projects in the world. Analysts have a bullish outlook on Seabridge Gold Inc. (SA), with a consensus rating of “Moderate Buy”. A Wall Street analyst has set a 12-month price objective of C$37.13 for Seabridge Gold in the last three months, which is an 83.89% gain from the current price of C$20.19.

As of Q1 2024, 15 hedge funds held shares in Seabridge Gold Inc. (NYSE:SA) The total number of institutional shares held long was 39,406,142, representing 44.58% of outstanding shares (excluding 13D/G filings). The hedge fund with the largest stake in Seabridge Gold is Kopernik Global Investors, holding 3.25 million shares worth $49.2 million, comprising 5.16% of their portfolio. The company has total liabilities of $575.32 million and a debt-to-equity ratio of 0.31, which is considered normal for its industry.

In Q1 2024, Seabridge Gold Inc. (NYSE:SA) did not generate any revenue as it is still in the exploration and development stage however, it reported a loss of $0.066 per share, missing the consensus estimate of -$0.029 by $0.037. As of March 31, 2024, Seabridge Gold had a strong cash position of approximately $176 million.

11. DRDGOLD Limited (NYSE:DRD)

Upside Potential: 86.07% 

Number of Hedge Funds: 8  

DRDGOLD Limited (NYSE:DRD) is a South African gold mining company that specializes in the retreatment of surface gold tailings.  A Wall Street analyst has set a 12-month price target of $15.50 for DRDGOLD in the last three months, which is an 86.07% upside from the current price of $8.33.

Hedge fund sentiment towards DRDGOLD Limited (NYSE:DRD) has been positive in recent quarters. According to the search results, the stock was held by 8 hedge funds in Q1 2024, down from 11 funds in the previous quarter. The hedge fund with the largest stake in DRDGOLD is Millennium Management holding 416,399 worth $3.4 million.

In Q1 2024, DRDGOLD Limited (NYSE:DRD)’s revenue was reported to be R1.44 billion, up 12% year-over-year and the adjusted EBITDA stood at R451 million, up 12% year-over-year. The earnings per share (EPS) stood at R0.92, up 15% year-over-year and the net cash flow from operations was R395 million, up 18% year-over-year in the same period.

10. Contango Ore, Inc. 

Upside Potential: 86.49%  

Number of Hedge Funds: 2 

Contango Ore, Inc. (CTGO) is a promising gold stock that has been gaining attention in the market. The company engages in the exploration and development of mineral properties in Alaska, primarily focusing on gold, silver, and copper ores. Analysts are bullish on Contango Ore, with a “Strong Buy” consensus rating. Three Wall Street analysts have set a 12-month price target for Contango ORE at an average of $31.06, with a range of $27.50 to $36.00. This is a 56.55% increase from the current price of $19.84 over the last three months.

The stock was held by 2 hedge funds in Q1 2024. The hedge fund with the largest stake in Contango Ore, Inc. is Sprott Asset Management holding 580,607 worth $11.52 million, comprising 0.83% of their portfolio.

Contango reported a net loss of $20.5 million or $2.14 per basic and diluted share for Q1 2024, compared to a net loss of $7.9 million or $1.09 per share in Q1 2023. The increased loss was primarily due to a $15.6 million non-cash expense related to mark-to-market derivative contracts on forward gold prices. The company incurred higher interest costs related to funds drawn on its secured credit facility in Q1 2024. These were partially offset by a reduction in the loss on its 30% equity investment in the Manh Choh project, which is being operated by Kinross Gold. Contango invested a further $15.5 million into the Peak Gold JV during Q1 2024 for expenditures at the Manh Choh project.

9. Galiano Gold Inc. 

Upside Potential: 109.43%  

Number of Hedge Funds: 5 

Galiano Gold Inc. (NYSE American: GAU) is a promising gold stock. The company is a mid-tier gold producer focused on creating a sustainable business. Several analysts have issued positive forecasts for Galiano Gold’s stock. Two Wall Street analysts have set a 12-month price objective of $3.02, ranging from $1.64 to $4.40, for Galiano Gold over the last three months. This is an 89.94% gain from the current price of $1.59.

Hedge funds have a significant stake in Galiano Gold Inc. (TSE:GAU), owning around 26% of the company’s shares. Galiano Gold’s stock has been performing well recently, with a 224% increase in its share price over the past five years and a 53% gain in the last three months. This strong share price momentum suggests that investor sentiment towards the company has been positive lately. The stock was held by 5 hedge funds in Q1 2024. The hedge fund with the largest stake in Galiano Gold Inc. is Sun Valley Gold, holding 14,978,090 worth $20.79 million, comprising 40.44% of their portfolio.

In Q1 2024, the gold that the company produced was 30,386 ounces, compared to 32,678 ounces in Q1 2023 and the gold sold was 31,840 ounces, compared to 35,174 ounces in Q1 2023. The total cash costs were $1,180 per gold ounce sold in Q1 2024, compared to $1,083 in Q1 2023. As of March 31, 2024, the company had $130.8 million in unaudited cash and cash equivalents and no debt.

8. Gold Royalty Corp. 

Upside Potential: 132.41%  

Number of Hedge Funds: 4 

Gold Royalty Corp. (NYSE: GROY) is a promising gold stock due to its strong growth prospects and attractive valuation. The company is a precious metals-focused royalty and streaming company that provides financing solutions to the metals and mining industry.

The company has a strong balance sheet with a current ratio of 1.41 and a low debt-to-equity ratio of 0.06. The company’s stock has a consensus “Strong Buy” rating from analysts. Four Wall Street analysts have set a 12-month price objective for Gold Royalty in the last three months, ranging from $2.50 to $5.75, with an average of $3.63. This implies a price increase of 145.27% above the current $1.48 price.

As of the first quarter of 2024, there were 55 institutional owners holding shares of Gold Royalty Corp. (GROY). These institutions held a total of 16,352,984 shares. The stock was held by 4 hedge funds in Q1 2024, down from 6 in the previous quarter. The hedge fund with the largest stake in Gold Royalty. is Sprott Asset Management, holding 126,178 shares worth $237,215, comprising 0.01% of their portfolio.

In Q1 2024, Gold Royalty reported revenue of $2.89 million, an increase from the previous quarter. The company’s net income for the quarter was $0.01 per share, beating the consensus estimate of $0.02 per share.

7. New Found Gold Corp. 

Upside Potential: 171.08%  

Number of Hedge Funds: 4 

New Found Gold Corp. (TSXV: NFG, NYSE-A: NFGC) is a promising gold exploration company focused on its 100% owned Queensway Project in Newfoundland, Canada. New Found Gold has received a consensus rating of Moderate Buy from analysts. Over the last three months, two Wall Street analysts have set an average 12-month price target of $7.41 for New Found Gold, with a high estimate of $9.00 and a low estimate of $5.82. Compared to the current price of $3.32, this indicates a 123.19% rise.

As of Q1 2024, only 4 hedge funds held long positions in the company, down from 7 in the previous quarter. The hedge fund with the largest stake in New Found Gold is Millennium Management, holding 185,596 shares worth $686,250.

As of June 2024, New Found Gold has approximately $56 million in cash and marketable securities to fund its exploration programs. The company is currently undertaking a 650,000-meter drill campaign at its Queensway project in Newfoundland, Canada.

6. U.S. Gold Corp. (NASDAQ:USAU)

Upside Potential: 174.10% 

Number of Hedge Funds: 2 

U.S. Gold Corp. (NASDAQ:USAU) is a promising gold exploration and development company with several projects in the United States. The company holds 100% interest in the CK Gold project in Wyoming, the Keystone project in Nevada, and the Challis Gold project in Idaho.

According to 2 analysts, the average rating for USAU stock is “Strong Buy.” The 12-month stock price forecast is $14.5, which is an increase of 174.1% from the latest price.

U.S. Gold Corp. (NASDAQ:USAU) had 42 institutional owners and shareholders that filed 13D/G or 13F forms with the SEC as of Q1 2024, holding a total of 811,388 shares (7.56% of shares outstanding ex 13D/G.

As of Q1 2024, only 2 hedge funds held long positions in the company. The hedge fund with the largest stake in USAU is Citadel Investment Group, holding 41,518 shares worth $152,371.

5. NovaGold Resources Inc. (NYSE:NG)

Upside Potential: 178.55% 

Number of Hedge Funds: 20 

NovaGold Resources Inc. (NYSE:NG) is a well-regarded gold exploration and development company with a focus on its flagship Donlin Gold project located in Alaska. NovaGold has a consensus analyst rating of “Moderate Buy”. In the past 3 months, two Wall Street analysts set a 12-month price target for Novagold Resources New at an average of $4.87, with a high of $5.00 and a low of $4.73, indicating a 38.94% increase from the current price of $3.51.

Hedge fund sentiment towards NovaGold Resources Inc. (NYSE:NG) appears to be positive, with 20 funds holding significant stakes in the company as of Q1 2024. The hedge fund with the largest position in NovaGold Resources is Paulson & Co. Inc., which holds 7.1% of the company’s shares. The hedge fund with the largest position in NovaGold Resources is Paulson & Co. Inc., with 41,518 shares worth $152,371.

In Q1 2024, NovaGold Resources Inc. (NYSE:NG) reported a net loss of $10.3 million for the quarter which is a slight decrease from the prior quarter and cash and cash equivalents decreased by $8.2 million, primarily to fund NovaGold’s share of the Donlin Gold project costs and corporate G&A expenses. For the full year 2024, NovaGold expects to spend around $14 million for its share of Donlin Gold project costs and $17 million for corporate G&A.

4. Gold Resource Corporation (NYSE:GORO)

Upside Potential: 232.08% 

Number of Hedge Funds: 6 

Gold Resource Corporation (NYSE:GORO) is a gold and silver producer with operations in Oaxaca, Mexico, and Nevada. GORO has a consensus rating of “Moderate Buy” from Wall Street analysts. A Wall Street analyst has set a 12-month price target of $1.50 for Gold Resources in the last three months, which is a 240.75% increase from the current price of $0.44.

As of Q1 2024, only 6 hedge funds held long positions in the company, The hedge fund with the largest stake in Gold Resource is CQS Cayman LP, holding 315,978 shares worth $137,324, comprising 0.03% of their portfolio.

Gold Resource Corporation (NYSE:GORO) reported a net loss of $4 million or $0.05 per share for Q1 2024. Their net sales stood at $18.7 million and were 40% lower than Q1 2023, mainly due to lower volumes of all metals sold and a 22% lower zinc price. In the same period, production costs were $16.1 million, slightly lower than the prior year and the gross mining profit was also lower in Q1 2024 due to lower sales not being proportionately offset by lower production costs.

3. TRX Gold Corporation (NYSE:TRX)

Upside Potential: 268.99%  

Number of Hedge Funds: 2 

TRX Gold Corporation (NYSE:TRX) is a gold exploration and production company with a focus on the Buckreef gold project in Tanzania. According to analysts, TRX Gold stock has a consensus rating of “Strong Buy” with a 12-month price target of $1.58, representing a staggering 284.8% upside potential from its current price.

As of Q1 2024, only 2 hedge funds held long positions in the company, down from 4 in the previous quarter. The hedge fund with the largest stake in TRX Gold Corporation (NYSE:TRX) is Citadel Investment Group.

In Q1 2024, TRX Gold Corporation (NYSE:TRX) reported revenue of $9.4 million from selling 4,895 ounces of gold. In the same period, their gross profit stood at nearly $4 million and adjusted EBITDA was reported to be $3 million. The company Generated $5 million in operational cash flow and reinvested $4 million back into operations for growth.

2. Vista Gold Corp. (NYSE:VGZ)

Upside Potential: 400.20%  

Number of Hedge Funds: 4 

Vista Gold Corp. (NYSE:VGZ) is a gold exploration and development company focused on advancing its Mt. Todd project in the Northern Territory, Australia. Vista Gold Corp. has a consensus rating of “Moderate Buy” from Wall Street analysts. In the past 3 months, one Wall Street analyst set a 12-month price target for Vista Gold at $2.50, indicating a 431.46% increase from the current price of $0.47.

As of Q1 2024, only 4 hedge funds held positions in Vista Gold Corp. (NYSE:VGZ). The hedge fund with the largest stake in Vista Group is Sun Valley Gold with 19,922,544 shares worth $11,250,260, comprising 21.88% of their portfolio.

Vista Gold Corp. (NYSE:VGZ) reported a consolidated net loss of $1.1 million, or $0.01 per common share, for Q1 2024, compared to a net loss of $2.0 million in Q1 2023, representing a 45% reduction in net loss. Cash and cash equivalents totaled $11.9 million at the end of Q1 2024, compared to $6.1 million at the end of 2023. This increase was aided by receiving the second $7 million installment payment from the recent $20 million royalty agreement. Vista also initiated a drilling program in Q1 2024 targeting shallow gold resources at the north end of the Batman deposit at Mt Todd, aiming to add near-surface resources to benefit early cash flows

1. GoldMining Inc. (NYSE:GLDG)

Upside Potential: 446.99%  

Number of Hedge Funds: 3 

GoldMining Inc. (NYSE:GLDG) is a mineral exploration company focused on acquiring and advancing gold projects in the Americas. GoldMining Inc. is considered one of the most promising gold stocks due to its strategic land holdings and exploration potential. GoldMining Inc. (NYSE:GLDG) has received a consensus rating of “Buy” from analysts A Wall Street analyst has set a 12-month price target of $5.25 for GoldMining over the last three months, which is a 475.66% gain from the company’s current price of $0.91.

As of Q1 2024, only 3 hedge funds held positions in GoldMining Inc. (NYSE:GLDG), down from 4 in the previous quarter. In Q1 2024, their cash and cash equivalents decreased from CA$21,589 thousand to CA$18,070 thousand. During the same period, total equity attributable to shareholders slightly increased from CA$129,243 thousand to CA$131,439 thousand.

While we acknowledge the potential of gold stocks, 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 GLDG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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