We recently compiled a list of the 11 Best Gold Stocks for Inflation. In this article, we are going to take a look at where Barrick Gold Corporation (NYSE:GOLD) stands against the other gold stocks.
History has shown that gold has always been one of the most secure stores of value, especially during times of economic uncertainty and downturns. This is also apparent from the sheer size of the global gold market, which Fortune Business Insights has forecasted to increase from $291.68 billion in 2024 to $457.91 billion by 2032. With looming concerns of trade wars and inflation, the surge in gold demand led gold prices to an all-time high of $2,830.49 per ounce on February 3, 2025, as reported by Reuters.
Gold posted a one-year return of 43.83%, surpassing the broader market’s 20.89% return for the same period, as reported on Yahoo Finance. In 2024, gold ETFs marked their best performance since 2010 as they surged 26%. Gold futures jumped over 1% to $2,670 per ounce. The Gold ETF holds a rating of 79 and trades above its 50-day moving average. Over the past six months, gold prices rose from $2,500 per ounce on August 5, 2024, to $2,830.49 per ounce on February 3, 2025. This 17.09% increase stemmed from concerns about rising inflation and tariffs imposed by President Donald Trump, including a 25% on Canadian and Mexican imports and a 10% levy on Chinese goods. All these factors, along with market volatility, have further pushed the demand for gold upwards.
Furthermore, according to Reuters, trade obstructions around the globe have also increased inflationary pressures. Tariffs imposed by China-including 15% on U.S. coal and LNG and 10% on crude oil and machinery-are projected to increase global trade costs by $50 billion in retaliation. This rise in production costs and inflationary pressures, coupled with supply chain disruptions, will further set the stage for gold to remain one of the best sources of hedging in the face of economic instability.
Given this surge in demand and importance, gold prices are forecast to remain between $2,905 and $4,042 in 2025. Analysts at JPMorgan expect gold to reach $3,000 per ounce in 2025 due to economic instability and strong central bank demand.
Inflationary pressures in the United States are also expected to persist. A U.S. inflation indicator, the Personal Consumption Expenditures (PCE) Price Index, increased to 0.3% in December 2024, marking its highest monthly gain since April 2024. During the last quarter of 2024, consumer spending increased by 0.7%, while labor costs surged by 0.9%.
On the other hand, supply and demand are key drivers of the gold market. Due to higher premiums offered in U.S. gold futures markets, gold is unexpectedly flowing from Dubai and Hong Kong to the United States. Hence, according to Reuters, U.S. Comex gold inventories have been experiencing a prominent increase. A report discussed in an Insider Monkey article has also projected increased demand by the central bank in 2025, exceeding the long-term average of 500 tons, further supporting gold prices.
As evident from the discussion above, gold has established itself as one of the most important assets for preserving value against inflation and continues to hold that title.
Methodology
To create our list of the 11 Best Gold Stocks for Inflation, we identified the most valuable gold stocks with a market cap greater than $500 million. We then shortlisted stocks that reported a dividend yield of at least 1% as of the time of writing. This ensured that these companies provided a good hedge against inflation. From these, we selected the top 11 stocks and arranged them in ascending order based on hedge fund sentiment, according to Insider Monkey’s database of Q3 2024.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A miner examining yellow gold ore in a mine shaft, symbolizing the company’s exploration process.
Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 43
Dividend Yield: 2.33%
Barrick Gold Corporation (NYSE:GOLD) is a leading gold company with assets spread across the Americas, Africa, and the Middle East. The company’s major operations include the Nevada Gold Mines joint venture, Pueblo Viejo in the Dominican Republic, Kibali in the Democratic Republic of the Congo, and Lumwana in Zambia.
During the third quarter ended September 30, 2024, the company demonstrated improved performance, as operating cash flow increased to $1.18 billion, while free cash flow rose by 31% YoY to $444 million. EBITDA also climbed to $1,292 million, up 20.63% from Q3 2023. The strong cash flow and EBITDA values reflect the company’s operational efficiency, along with higher gold prices.
Barrick Gold Corporation (NYSE:GOLD) has been making waves all over the world, making economic impacts and creating jobs. Recently, it has been making moves in Pakistan where a new copper-gold project by the name of Reko Diq is expected to start production by 2028. This project is expected to generate an impressive free cash flow of $74 billion over its 37-year lifespan, according to Business Recorder. The Reko Diq project is expected to be a game changer for the company and its long-term growth as it resulted in an addition of 13 million ounces of gold to the company’s reserves on an attributable basis.
Thus, Barrick Gold Corporation (NYSE:GOLD) appears well-positioned to capitalize on rising gold prices in the near future, providing investors with a strong hedge against ongoing inflation.
Overall GOLD ranks 3rd on our list of the best gold stocks for inflation. While we acknowledge the potential of GOLD as an investment, 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 GOLD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
