We recently published a list of 10 Best Gold Penny Stocks to Buy Now. In this article, we are going to take a look at where New Gold Inc. (NYSE:NGD) stands against other best gold penny stocks to buy now.
The global precious metals market is influenced by economic uncertainty, inflation, and shifting supply and demand patterns. The Business Research Company projects that the global metals market will grow at a CAGR of 5.9% through 2025. The mining sector is expanding at a CAGR of 6.2%, outpacing the broader metals market, and is expected to reach $2,401.85 billion.
Gold prices set new records in 2025, with Reuters reporting spot gold at $2,936.38 per ounce on March 3 and U.S. gold futures at $2,956.10. Central banks are stockpiling gold, which is driving up demand at record rates. Furthermore, investors seek gold as a safe haven during periods of inflation. S&P Global reports that gold futures grew by 34.6% year-over-year as of March 7, 2025, outpacing broader market indices. These trends are reshaping the gold market’s role in finance.
Supply and demand patterns are also shifting as gold now flows from Asian hubs such as Dubai and Hong Kong to the U.S., driven by higher premiums in U.S. futures markets and fears of import tariffs. U.S. Comex gold inventories have jumped 80% since late 2024, and investors are responding to better pricing and arbitrage opportunities.
Meanwhile, silver prices have also surged, reaching $30 per ounce in 2024, the highest since 2011. This increase was driven by inflation, geopolitical instability, and a weaker U.S. dollar. The Silver Institute expects the total silver demand to reach 1.20 billion ounces in 2025 while fabrication demand will exceed 700 million ounces for the first time. Additionally, silver recycling is expected to rise 5% to over 200 million ounces, the highest since 2012.
Platinum supply remains tight, with global production forecast to rise marginally by 0.76% in 2025, reaching 7.32 million ounces, leaving a supply gap of 539,000 ounces. Refined platinum production is expected to fall by 1%, reaching 5.55 million ounces versus 5.63 million in 2024. South Africa’s declining output worsens this shortfall.
Despite these obstacles, technological advances offer some hope. AI-driven exploration has cut mine development time from 16 years to nine. According to KPMG Mining Outlook 2024, geophysical data analysis now takes weeks instead of years. New refining technologies like bioleaching and cyanide-free processing improve efficiency and sustainability, ensuring more secure long-term precious metal supplies.
Our Methodology
To compile a list of the 10 Best Gold Penny Stocks to Buy Now, we first sifted through ETFs and stock screener to gather the top mining stocks under $5. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database, which tracks the moves of over 1,000 elite hedge funds.
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).
Aerial view of an open mine with large cranes and excavators working on the surface.
New Gold Inc. (NYSE:NGD)
Number of Hedge Fund Holders: 26
New Gold Inc. (NYSE:NGD) is a Canadian gold mining company focusing on developing and running key mineral sites across North America. The company owns the Rainy River mine in Ontario and the New Afton project in British Columbia, where it extracts gold, silver, and copper.
For the year ended December 31, 2024, New Gold Inc. (NYSE:NGD) reported impressive financial results, with revenue hitting $924.5 million, up 17.55% from 2023. This growth came from higher gold and copper prices, and improved operations. The company cut total costs per ounce by 31%, from $1,481 in Q4 2023 to $1,018 in Q4 2024. These cost savings boosted margins and helped generate $90 million in free cash flow.
New Gold Inc. (NYSE:NGD) hit major operational milestones in 2024. The C-Zone at New Afton achieved commercial production, boosting efficiency and cutting costs. However, Rainy River faced some mechanical downtime that briefly impacted production.
Going forward, New Gold Inc. (NYSE:NGD) expects gold output to rise from 300,000 ounces in 2024 to 410,000 ounces by 2027. Production may dip in early 2025 due to mine sequencing, but should bounce back in the second half as the C-Zone fully ramps up. Ongoing exploration at Rainy River might extend the mine’s life, depending on metal prices and tailings capacity.
With solid financial performance, reduced costs, and a 94.22% stock gain over the past year, as of the date of writing this article, New Gold Inc. (NYSE:NGD) stands out as one of the best penny stocks. Its focus on efficiency, production growth, and financial strength makes it a compelling option for investors in the gold market.
Overall, NGD ranks 3rd on our list of best gold penny stocks to buy now. While we acknowledge the potential of NGD, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NGD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.