Wall Street professionals recommend keeping a small portion of your portfolio invested in gold. Gold also makes a great hedge against inflation, as it helps offset the loss of purchasing power during inflationary times.
With this guide, you will learn the 10 best gold stocks to add to your portfolio right now. You will also discover how to complete your investment at a commission-free broker.
In This Guide
According to our analysis, these 10 gold stocks represent the overall best gold stocks to invest in right now.
In 2020, gold stocks captured attention after the price of gold soared to record highs on pandemic-related fears that caused stock prices to plummet. As a result, gold prices have dipped slightly, leading many to believe that precious metal is undervalued.
The following are some of the best gold stocks on the market today:
One of the most popular mining companies is Barrick Gold, which has more than 14.5 million shares traded during an average trading session. Its market capitalization is more than $35 billion, making it one of the most valuable companies in the world.
The company owns 14 gold mines, six of which are Tier One Gold Assets, which means they have a life expectancy of more than 10 years and produce at least 500,000 ounces of gold annually.
Essentially, the company owns six gold assets of the highest quality and highest expected return in the industry.
Eventually, gold deposits are depleted as mines extract them from the earth. Therefore, as part of its continued exploration and acquisition of mines, Barrick is working on developing new mines. The company looks for and develops new assets based on its ability to have a long life cycle and the best-operating margins.
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In addition to having a market cap of over $47 billion in value. Over 31,000 employees manage some of the world’s largest gold mines, goldfields, and gold reserves.
Currently, the company owns 22 mines, with 10 being owned in underground mining and 12 in surface mining.
Newmont continuously expands its reach by developing new mines before its currently operating mines reach depletion. For example, a co-development agreement between the two companies was signed in 2019 for the Nevada Gold Complex. There are three of the world’s top 10 Tier One Gold Assets in the complex, which is estimated to be the largest gold production project in the world.
Newmont’s gold reserve base – a lineup of unmined gold resources – is one of the company’s key differentiators. More than 90% of this reserve base is located in top-tier jurisdictions. Considering that the company is building out its mining capacity and is the industry leader, it makes sense to expect continued growth in value.
The company Franco-Nevada Gold is not itself a gold mining company. Instead of mining and taking risks associated with it, the company focuses on streaming and royalties.
Initially, the company provides the upfront funding necessary to develop and operate mines in exchange for a contractual right to purchase some or all of the gold produced at a highly discounted price.
Franco-Nevada Gold provides miners with the upfront capital they need to operate their mines, which is an expensive business. To be able to operate a mine, the companies must spend huge sums on equipment, fuel, and land.
Franco-Nevada Gold obtains the right to purchase gold at a contractually reduced rate for upfront funding. Consequently, Franco-Nevada Gold stands to benefit regardless of gold’s price. Whenever gold prices rise, it has the right to purchase the commodity at highly reduced rates. Conversely, gold prices decline when miners need cash, and the company makes the biggest deals.
Located in Canada, Agnico Eagle Mines is another gold mining stock worth watching. This mining giant has international operations, with active projects in Mexico, Finland, and the US.
Agnico Eagle Mines has a unique policy regarding gold sales, which tells you how confident the company is in its product. Agnico Eagle does not participate in forwarding gold sales like many other mining companies. It does not want to accept upfront cash in exchange for a discount on future gold production. Instead, it only sells its products after they have already been produced.
The company’s business model has proven to be both strong and stable, even when gold spot prices are low. Despite the current price tag on gold, the company has been paying dividends to investors since 1983, regardless of how strong the economy is.
Kinross Gold was founded in 1993. It has quickly risen to become a leader in its field with mines in the US, Brazil, Ghana, Mauritania, and Russia.
Despite having mines spread throughout the world, the company’s vast majority of production comes from its US operations. This is significant because it provides geopolitical insulation.
Kinross, for example, would only lose a small percentage of its production if tensions between the US and Russia deteriorated and sanctions were imposed against commodities, limiting trade between the two countries. However, other companies that operate primarily overseas would likely suffer significantly more losses.
Kinross’s strategy of maintaining most of its operations in North America is a major advantage in the current geopolitical environment.
On this list, Sibanye-Stillwater is one of the only entries whose claim to fame does not involve gold. This company has gold and base metal operations in South Africa and the Americas; however, its core focus is to mine platinum group metals (PGMs) in South Africa and the US. Among these metals are platinum, palladium, rhodium, ruthenium, and iridium.
Sibanye-Stillwater also produces lithium, whose value has skyrocketed as electric vehicles have become more common. However, the batteries in these vehicles run on lithium, a key component that’s hard to come by.
It is one of the newest companies on this list but has already grown, worth $10 billion. However, history indicates that its growth is far from over. This stock is one to watch very closely, given the leadership position the company has built over such a short period and its focus on rare precious metals in high demand.
Wheaton Precious Metals is another firm that is not interested in producing gold. Instead, its strategy is to establish precious metals streaming agreements. The company provides the upfront funding for developing and operating mines and then purchases some or all of the gold produced by those mines at heavily discounted rates.
The company is one of the largest metals streaming companies globally, with a market capitalization of more than $20 billion. Currently, the company has a financial interest in 23 operating mines and eight mines in the development stage.
Streaming agreements are generally short-term, but Wheaton does things differently from most. The company is also one of the very few with contracts that span the life of the mines it invests in, even though some of its streaming deals are short-term.
The company stands out from other metal streaming companies with this competitive advantage.
Eldorado Gold is a Canadian gold mining company that deals in the mining, exploration, and development of gold and other base metals. The company operates in Brazil, Canada, Greece, Romania, and Turkey. Among the company’s five mines, operations in Turkey generate the majority of its revenue. Eldorado plans to produce around 430,000-460,000 ounces of gold each year and has increased production by 34% in 2020 to 528,874 ounces. The company is listed on TSX and NYSE.
B2Gold Corporation is a Canadian gold mining company with facilities in Mali, Namibia, and the Philippines. Founded in 2007, the company was listed on the Toronto Stock Exchange in 2007, then on the New York Stock Exchange and the Namibian Stock Exchange. Following Bema Gold’s acquisition by Kinross Gold, several Bema Gold executives formed the company. As a result of mergers with other mining companies, including Central Sun Mining, CGA Mining, Auryx Gold, and Papillon Resources, the company now operates five mines, two of which have been sold, and has a number of exploration properties.
The Covid-19 pandemic did hurt B2Gold’s share price. In January 2020, the share price decreased to $2.70. It then rose to $7.20 in August 2020, then declined to about $4.30. 2021 was a year of improvement for the company. The price has improved since then, and the stock is currently trading at $4.82.
Centamin is a multinational mineral exploration, development, and mining company headquartered in Jersey. In particular, it examines the Arabian-Nubian Shield, which exposes crystalline rocks on both sides of the Red Sea. Centamin operates mines in Egypt, Jordan, Israel, Saudi Arabia, and Somalia, the most famous of which is the Sukari Gold Mine. The company also owns exploration and development assets in Burkina Faso and Côte d’Ivoire. In addition, the company owns subsidiaries in the surrounding regions. According to Centamin, its revenue for 2020 increased by 27%.
As we have examined the top gold stocks to buy right now, we can evaluate how long it takes to find the right investment for your portfolio.
According to Sherman, the answer is rooted in economic policy: The monetary expansion and stimulus have pumped the markets with trillions of dollars, squashing fear and creating a surge in risk assets, such as cryptos, stocks, junk bonds, and real estate.
Due to this, investors are willing to take on more risks to cover inflation. In addition, investors have turned to other assets, such as equities, in response to gold’s decline for greater returns.
Another factor influencing gold prices is the rise of cryptocurrencies, which eat into gold’s market share. This weakening demand is reflected in the continued outflows from gold exchange-traded funds.
The investor community is debating whether cryptocurrency could play the same role as gold. Although Bitcoin’s value is far from stable, some see it as akin to gold because of its fixed supply and performance potential. But gold is a tested asset, whereas Bitcoin is an emerging asset, which increases investor risk.
Understanding these metrics and their implications for better investment evaluation is crucial. They are:
In general, gold production means more gold for the company to sell and generate revenue from. In other words, we can think of this metric as having the potential of generating revenue for gold mining companies. Considering the importance of this metric, companies in the trade report gold production both quarterly and annually. Therefore, investors should seek out companies increasing their gold production. That indicates a growing future revenue potential, demonstrates the smart capital allocation strategy employed by the management, and opens the door to increased stock prices in the coming quarters. Alternatively, companies reporting shrinking gold production are at risk of financial decline, might have mining issues, and should generally be avoided.
Once dirt and ores have been extracted from the mines, they must be processed and refined to yield usable physical gold. The recovery rate refers to how much gold is extracted from these ores. A company that produces 1kg of gold from 1000kg of ore is better off than a company that produces 1kg from 1 million kg of ore. A higher gold recovery rate would mean more ounces of gold being processed from the same amount of ore, making it a more profitable endeavor. Look for companies that have a high gold recovery rate.
Gold companies typically classify their operating costs according to the following criteria:
Growth investors are typically more attracted to gold stocks than income investors. Some gold mining companies are profitable even when gold prices are low, but most rise and fall with gold prices. A rise in gold-stock prices is often reflected in increases in the price of gold. Even a relatively small increase in the price of gold can result in substantial gains in gold stocks, and investors typically achieve higher returns than those who own physical gold.
Gold stocks with historically strong dividend performance can benefit even investors focused primarily on growth rather than steady income. In a rising sector, dividend-paying stocks tend to show higher gains, and in a downturn, they do better – on average, nearly twice as well – than non-dividend-paying stocks.
In a balanced portfolio, gold can be an excellent investment asset. In addition, gold is among the most liquid commodities in the commodity markets and has increased in value over time.
If you invested £1000 in gold 30 years ago, it has increased by over 500%. In other words, you may have made more than $5,000 out of your original investment. Nevertheless, suppose we know anything about financial markets. In that case, past performance isn’t indicative of future performance – although an asset that has performed well over time is preferable to one that hasn’t.
Although the 10 gold stocks that we discussed earlier are also classified as large-cap companies, there is also an abundance of penny stocks with a low share price and market capitalization.
A penny stock is a publicly-traded company whose share price is less than $5, according to the SEC. While gold penny stocks can offer great upside potential, they also carry many risks.
Even so, if you’re looking for the top gold penny stocks to buy right now, take a look at these companies:
Platinum Group Metals Ltd operates the Waterberg Project, a bulk underground PGM deposit in South Africa. Platinum Group discovered Waterberg, and it is currently being developed jointly with Implants, the Japan Oil, Gas and Metals National Corporation (JOGMEC), and Hanwa Co. Ltd. Waterberg can become a large-scale, low-cost producer of palladium, platinum, rhodium, and gold. Geographically, it operates in South Africa and Canada.
As a mineral resource company, Avino Silver & Gold Mines Ltd is involved in exploring, extracting, and processing silver, gold, and copper. Most of the company’s revenues come from selling silver produced by its mines. Avino, San Gonzalo, Oxide Tailings, Bralorne Gold, and others are among its projects.
The Harmony Gold Mining Company was founded in 1950 to develop gold mining and exploration globally. The company is the largest gold producer in South Africa. The company operates several gold mines in the Witwatersrand Basin, Klerksdorp, West Rand, and Free State.
The market capitalization of a gold stock is $2.66 billion. Its 52-week low is $1.76, and its 52-week high is $7.61. There is high liquidity at Harmony Gold Mining Company, and it trades more than 4.1 million shares a day. This company had revenues of $26 billion in 2019.
Equinox Gold Corp has a product portfolio, near-production, and exploration-stage projects as a Canadian mining company. Aurizona gold project in Brazil and Castle Mountain are the company’s principal assets. It also owns the Koricancha gold milling operation in Peru, Warintza copper-molybdenum exploration property in Ecuador, Ricardo copper-molybdenum exploration property in Chile, and the resource-bearing Elk Gold project Canada.
Having completed this guide, you should now understand which gold stocks best suit your investment portfolio and long-term goals. Next, you might be interested in where to purchase gold stocks.
The trading platform you choose should provide competitive rates on gold stocks you wish to add to your portfolio. In addition, the platform should offer fractional shares if it does so that you can buy the hottest gold stocks and the best dividend stocks with a minimum investment of only $10.
The reason we found eToro to be the best overall place to buy gold stocks is:
eToro is our top pick for the best online stock broker for retail investors. More than 3,000 stocks are available across 12 markets and exchanges on the platform. eToro offers stocks for as little as $10, which is the best. In addition, through fractional share trading, you can get exposure to the most expensive stocks.
eToro supports markets such as the US, UK, Hong Kong, Germany, etc. Whether you are buying the US or foreign companies, you can buy and sell gold stocks at 0% commission on eToro.
On top of that, on eToro, every gold stock is available for as little as $10. The reason for this is that eToro promotes fractional shares. Therefore, the minimum deposit required to find gold stock investments is $10. Moreover, you can deposit funds for free if you’re based in the US. The payment can be made via a debit or credit card, PayPal, Neteller, ACH, online banking, and other convenient methods.
It is also worth noting that gold stocks that pay dividends – most of which do – will deposit your share directly into your eToro account. Dividends generated from this investment can then be reinvested in the gold industry or requested to be withdrawn. Additionally, eToro offers hundreds of commission-free ETFs to diversify your portfolio.
The company also offers a professionally managed portfolio service called smart portfolios, which gives you passive exposure to various industries, including gold.
After gold prices cooled off after a run triggered by the COVID, it only makes sense that more and more investors are now diving into the market while prices are still reasonable. There is no doubt that investing in gold and the companies that mine and sell it can be a profitable endeavor. Nevertheless, plenty of investors has leveraged gold on their way to wealth by leveraging the precious metal.
Despite this, you should remember that not all gold stocks are created equal, as is true of any industry or sector. Therefore, research is vital before investing.
Yes. According to popular belief, gold is one of the best investments to make during a recession - when the stock market pulls back dramatically, gold often gains in value.
Barrick Gold Corp or Newmont are the best gold stocks to buy. eToro offers both.
It is possible to invest in gold from the comfort of your own home as long as you have an account with a broker who provides access to your chosen gold stock. The vast majority of gold stocks are traded on the NYSE.
Gold stocks are a great investment due to gold's resistance against inflation. EToro offers gold stocks from different gold mining companies.
Our list of 10 gold stocks includes 10 companies that can be bought and sold at eToro for as little as $10. Using this top-rated broker, you can buy gold stocks from US and foreign markets at 0% commission.
You only need to create your account, verify it, deposit the required funds, search for the gold stock option you want the most on the platform, and you can start trading then.
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