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 Kinross Gold Corporation (NYSE:KGC) 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).
Aerial shot of a mine entrance, the bedrock of the company’s gold and silver extraction.
Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 37
Dividend Yield: 1.01%
Kinross Gold Corporation (NYSE:KGC), operates in North and South America, as well as West Africa, and is engaged in the mining of gold and silver. Major assets under the company’s belt are the Tasiast, Fort Knox, and Round Mountain mines, along with the growing White Gold project in Canada.
During the third quarter ended September 30, 2024, Kinross Gold Corporation (NYSE:KGC) produced 564,106 gold equivalent ounces at a cost of $976 per ounce. This was accompanied by an impressive free cash flow of $415 million, which was a threefold increase from Q3 2023. The margin per ounce also increased by 47% YoY due to strong cost efficiency and operational execution. The company’s revenue growth remained solid at 30% YoY due to higher realized gold prices.
The company’s financial health also appears favorable to investors, as it reduced its net debt by $1.8 billion over the last 18 months. As a result, its net debt to EBITDA fell from 1.7x to 0.5x times as of Q3 2024. In addition to improving its leverage, the company was successfully able to pay $36.9 million in dividends during the quarter. The company also declared a quarterly dividend of $0.03 per share, which was paid in December 2024.
Therefore, with increasing margins, a strong cash position, a healthy asset pipeline, and a promising growth outlook, Kinross Gold Corporation (NYSE:KGC) stands out as one of the Best Gold Stocks For Inflation, as its stock price has already appreciated by over 29% on a YTD basis.
Overall KGC ranks 4th on our list of the best gold stocks for inflation. While we acknowledge the potential of KGC 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 KGC 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.
