7 Best Gold Stocks for 2022

Gold ingots stock photo
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If you want to invest in gold without the hassle of storing and protecting gold bars or coins, you may consider investing in gold stocks. Forbes Advisor notes that “Gold may or may not be a particularly good inflation hedge,” but it has held its value over time.

Many investment experts diversify their portfolios with gold stocks. But which are the best gold stocks to buy?

See: 5 Things You Must Do When Your Savings Reach $50,000

What Are the Best Gold Stocks to Invest In?

When you’re evaluating companies for your next investment, you want to look at the company’s fundamentals. Gold company stock prices will vary based on more than just today’s market value of gold. You will want to consider the company’s fundamentals, its leadership, the past performance of the stock, how much gold the company typically produces in a year and its cash assets — among other factors.

Here’s a list of some of the best gold stocks today based on expert recommendations and evaluations.

Stock Price Market Cap
Barrick Gold (GOLD) $16.58 $29.02B
Newmont (NEM) $46.40 $36.83B
Franco-Nevada (FNV) $140.81 $36.84B
Royal Gold (RGLD) $110.55 $7.26B
Wheaton Precious Metals Corporation (WPM) $38.99 $17.59B
Rio Tinto Group (RIO) $78.25 $117.495B AUD
Agnico Eagle Mines Ltd (AEM) $50.92 $23.18B
Price and market cap data are accurate as of stock market closing on Dec. 9, 2022.

7 Best Gold Stocks To Invest In For 2022

Here are seven gold mining companies that appear to be rated as “buys” right now by experts.

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1. Barrick Gold

Why it stands out: Six out of 10 Wall Street analysts give Barrick Gold a “buy now” rating, with 4 analysts advising investors to hold the stock. Experts predict the stock could rise by as much as 37% in the next 12 months.

Pros

  • Stock may be undervalued right now
  • Top gold producer in North America
  • Company seeks to increase its gold and copper reserves

Cons

  • Not a growth stock

What To Watch For

The Q3 2022 financial report for Barrick Gold showed sales were down 11% year over year.

2. Newmont

Why it stands out: As the second largest publicly traded gold stock based on market cap, just behind Franco-Nevada, Newmont is impossible to ignore. Financial reports show three years of rising sales. Right now, the stock is considered a value, with analysts calling it a “moderate buy.” Right now, it’s down roughly $40 from its 52-week high.

Pros

  • 4.66% dividend
  • Trading near its 52-week low
  • “Moderate buy” rating from analysts
  • Only gold company in the S&P 500
  • Stable investment

Cons

  • Gold prices could affect stock prices
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What To Watch For

You can find stocks with a higher dividend yield. Newmont tends to vary its dividends frequently.

3. Franco-Nevada

Why it stands out: Franco-Nevada is the second largest gold mining company traded in North America based on market cap. The American Association of Individual Investors is giving the stock high grades for growth, which could make it a good investment.

Pros

  • High growth stock
  • Diversified portfolio of gold, platinum, oil, gas and other assets
  • Strong business development
  • No debt

Cons

  • Relatively low dividend yield under 1%
  • Quarterly sales growth down year-over-year

What To Watch For

Zack’s Rank is calling Franco-Nevada a “hold,” saying the stock may be overvalued right now.

4. Royal Gold

Why it stands out: Analysts give Royal Gold stock a “buy” rating, with 3 analysts recommending that investors hold the stock. Analysts believe the stock could gain more than 21% in the next year.

Pros

  • Expert analysts predict growth
  • Dividend yield of 1.25%
  • Dividends have increased steadily over 20 years

Cons

  • Share price has dropped 24% in the past 3 years
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What To Watch For

Royal Gold stock prices haven’t had a great track record in recent years, but revenue is up during that time, indicating growth potential.

5. Wheaton Precious Metals Corporation

Why it stands out: Analysts give Wheaton Precious Metals Corp. a consensus rating of “buy,” with only one “hold” rating.

Pros

  • Investors predict 12-month gains of 30%
  • Earnings grew by more than 28% year-over-year
  • Company carries no debt

Cons

  • Stock may be overvalued
  • Low dividend yield of 1.52%

What To Watch For

Zack’s is predicting a below average return for Wheaton Precious Metals and lists the stock as “overvalued” at its current price.

6. Rio Tinto Group

Why it stands out: This global gold mining company recently acquired Turquoise Hill Resources, which promises to “deliver significant benefits for all shareholders,” according to a company press release.

Pros

  • Stock may be undervalued
  • Growth potential could outperform the market
  • $300 million net cash
  • High dividend yield of 7.27%

Cons

  • Carries debt

What To Watch For

Unlike some of the other gold companies on this list, Rio Tinto does carry debt. It has increased its capital investments in the past year, and some analysts believe the stock price may decline in 2023.

7. Agnico Eagle Mines Ltd.

Why it stands out: Six Wall Street analysts have given Agnico Eagle Mines Ltd. a unanimous “buy” rating. The company’s mineral reserves of roughly 3 million ounces of gold, along with silver, zinc and copper, have made it highly profitable in recent years.

Pros

  • Solid “buy” rating from analysts
  • Strong company fundamentals
  • Net income growth of 34% in the past 5 years
  • 3.14% annual dividend yield

Cons

  • Trading close to its 52-week high
  • May be overvalued

What To Watch For

Agnico Eagle Mines’ return on equity is unimpressive right now, but its net income has been growing consistently.

Is It Better to Own Gold or Gold Stocks?

Gold prices, like other precious metals, tend to be fairly stable and hold their value over time. This means investing in gold is likely be less volatile than other investments, such as high-growth tech stocks.

However, investing in gold bullion can be complicated and has a number of drawbacks. First of all, you’ll need a secure place, such as a home safe, to store your gold. You’ll want to make sure your homeowners insurance covers the loss, theft or damage of gold bullion. And if you decide you want to cash out your gold, you’ll need to find a buyer. It isn’t as easy as selling stocks through an investment app.

You might also consider investing in gold coins or gold jewelry, but these tend to cost more than the actual value of the gold. Again, they can be difficult to store and protect against loss or theft, and if you want to sell them, you will need to find a buyer.

It is easier to own gold stocks, which provide liquidity and security.

Final Take

If you are looking to invest in gold without the hassle of storing and protecting gold bullion, investing in gold stocks is an easy way to do it. While gold stocks tend to be a more stable investment than company stocks in some other industries, no investing is without risk.

FAQ

  • Are gold stocks a good idea?
    • If you'd like the benefits of a stable investment without having to store and protect gold bullion, gold stocks are a good idea.
  • What is the most popular gold stock?
    • Franco-Nevada is the largest publicly held gold mining company based on its market cap. However, any of the stocks on this list are popular investment choices. If you are unsure of your best course of action, speak with a financial advisor who can help you make the right choices based on your risk tolerance, cash available to invest and the rest of your portfolio.

Data is accurate as of Dec. 9, 2022.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.
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