While gold has consistently held its value over time, directly investing in the metal entails challenges like storage and protection. Many investors pivot to gold stocks for exposure without the need to physically hold gold. These stocks, though affected by factors beyond the gold price and often tied to diverse mining activities, offer a more convenient alternative. But which are the best gold stocks to buy? Keep reading to find out.
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, its leadership, the past performance of the stock, how much gold the company typically produces in a year and its cash assets. Also consider the level of risk. A growth stock might be a good choice for someone willing to take on extra risk for potentially higher gains — and a bad choice for a more conservative investor.
Here’s a list of some of the best gold stocks today based on expert recommendations and evaluations.
|Barrick Gold (GOLD)||$16.30||$28.61B|
|Royal Gold (RGLD)||$105.31||$6.92B|
|Wheaton Precious Metals Corporation (WPM)||$42.77||$19.37B|
|Rio Tinto Group (RIO)||$63.09||$78.92B|
|Agnico Eagle Mines Ltd (AEM)||$47.40||$23.43B|
|Kinross Gold Corporation (KGC)||$5.22||$6.41B|
8 Best Gold Stocks To Invest In for 2023
Here are eight gold mining companies that appear to be rated as “buys” right now by experts.
1. Barrick Gold
- Market Cap: $28.61B
- YTD Return: -5.12%
Barrick Gold is one of the most established names in the gold industry. With a presence in multiple continents, the company focuses on high-quality, low-cost operations. Their diverse portfolio includes some of the world’s foremost gold mines, positioning them as a global leader in gold production. Their dedication to environmental, social and governance principles showcases their commitment to responsible mining.
Why we chose it: Barrick Gold is a prominent figure in the gold industry and is one of the top gold producers in North America. Barrick presents a strong case for potential growth in the future.
- Market Cap: $29.79B
- YTD Return: -20.59%
Celebrated as one of the world’s largest gold miners by production, Newmont has a rich heritage of exploring and discovering key gold reserves. They operate in North America, South America, Australia and Africa, combining modern technology and sustainable practices to extract value for stakeholders throughout the gold production process.
Why we chose it: As the largest publicly traded gold stock based on market cap, Newmont’s consistent performance and years of rising sales underscore its value in any gold-centric portfolio.
- Market Cap: $25.71B
- YTD Return: -1.90%
Franco-Nevada stands out as a gold royalty and streaming company, which means they primarily invest in gold mining projects and receive a portion of the output. This unique business model enables them to have diversified revenue streams with minimized operational risks. Their vast portfolio stretches across various mining and exploration operations worldwide.
Why we chose it: The company’s diversified assets, ranging from gold and silver to oil and gas, make it a unique and valuable addition to this list.
4. Royal Gold
- Market Cap: $6.92B
- YTD Return: -6.57%
Royal Gold isn’t a mining company per se. Instead, they’re in the gold streaming business. This means they provide upfront financing to mining companies in exchange for the right to purchase gold at reduced prices in the future. Their unique business model allows them to benefit from the gold mining industry without directly taking on the operational challenges and risks associated with mining. This has enabled them to secure a diverse portfolio that spans across the globe, ensuring steady revenue streams.
Why we chose it: With consistent dividend increases over the last two decades and potential growth indicators, Royal Gold showcases both stability and potential.
5. Wheaton Precious Metals Corporation
- Market Cap: $19.37B
- YTD Return: +9.44%
Not just a traditional miner, Wheaton Precious Metals operates as a streaming company. This means they enter agreements to purchase a part of the production at a fixed price. Their innovative business model provides them with diversified revenue from both gold and silver, while also reducing direct operational risks.
Why we chose it: Wheaton stands out for its financial health, highlighted by its minimal debt, combined with analysts’ predictions of significant gains.
6. Rio Tinto Group
- Market Cap: $78.92B
- YTD Return: -11.39%
Rio Tinto is a global mining behemoth, known not just for its gold operations but also for mining a range of other minerals and metals, including iron ore, copper and aluminum. With a rich history spanning nearly 150 years, Rio Tinto has a presence in over 35 countries. Their commitment to innovative, sustainable mining practices and their robust portfolio of world-class, large-scale assets, positions them as a leader in the global mining industry. They are also heavily invested in community development and environmental preservation in the regions where they operate.
Why we chose it: The acquisition of Turquoise Hill Resources sets Rio Tinto up for potential future gains, while its impressive dividend yield makes it attractive for income-focused investors.
7. Agnico Eagle Mines Ltd.
- Market Cap: $23.43B
- YTD Return: -8.83%
Agnico Eagle boasts a rich history of gold production, underlined by its high-grade deposits. With multiple assets in politically stable regions, they are renowned for their commitment to safety, environmental management and community development. Their emphasis on exploration ensures that they have a robust pipeline for future growth.
Why we chose it: Agnico’s consistent profit growth and diverse mineral reserves make it a top choice. With a strong buy rating from several analysts, this stock has potential.
8. Kinross Gold Corporation
- Market Cap: $6.41B
- YTD Return: +27.63%
Kinross Gold Corp. is a well-established gold mining company with a strong global presence, having operations in countries including the United States, Brazil, Canada and Chile. The company boasts a diverse portfolio of mines and projects, ensuring a steady gold production pipeline with growth potential.
Why we chose it: With its commitment to responsible mining and environmental sustainability, Kinross Gold Corp. is not only a financially but also ethically sound choice for investors.
Gold vs Gold Stocks
Gold prices, like other precious metals, tend to be fairly stable and hold their value over time. This means gold investments are likely to 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.
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 investment is without risk.
- Are gold stocks a good investment?
- Because gold has held its value over time, it can be a good investment – and if you'd like the benefits of a stable investment without having to store and protect gold bullion, gold stocks are a good idea.
- Is it better to own gold or gold stocks?
- Physical gold is more likely to hold a steady value over time, but it comes with the dilemma of storing and insuring it properly. Gold stocks, on the other hand, might see more fluctuation in price due to market ups and downs or other facets of the company, but they are easier to buy and sell and don't come with the cost of storing and insuring them.
- What are the best stocks for gold?
- The best gold stocks often vary based on market conditions, but companies like Barrick Gold, Newmont Corporation and Franco-Nevada Corporation have consistently been market leaders in the gold industry.
- Is gold worth the investment in 2023?
- Gold has historically been a hedge against inflation and a store of value. In 2023, given the economic uncertainties and inflationary concerns, gold remains a relevant asset for diversification in investment portfolios. However, investors should always consider their financial goals and risk tolerance before making decisions.
- Which gold stocks pay the highest dividends?
- Gold mining companies like Newmont Corporation and Barrick Gold Corporation have been known to offer attractive dividend yields. However, dividend payouts can vary based on company performance and market conditions. Always research the current dividend yields and company performance before making investment decisions.
Data is accurate as of Oct. 27, 2023.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.