Investors surveying the market landscape today are forced to conclude that economic uncertainty is high and geopolitical tensions are elevated. Further, inflation in the U.S. and around the developed world is proving much more stubborn than anyone would like it to be. Stock market investors and consumers have every reason to be concerned about their finances and their investment holdings.
Many investors are turning to gold stocks to stabilize their portfolios and mitigate the devastating effects of inflation and global turmoil. Gold and stocks tied to it have long been considered safe havens because they often retain value or go up during times of market instability. In this sense, gold stocks can act as a hedge against volatility and the depreciation other assets might be experiencing.
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Gold-related investments can enhance diversification by adding another asset class to a portfolio. Gold is particularly useful in this area because it has a fairly low correlation with stocks and other more traditional investments. In short, adding gold stocks to a portfolio can help reduce overall risk.
Gold has historically been an exceptional store of value. Gold stocks are more than just marketable securities. They are underpinned by a physical asset that has been a medium of exchange for thousands of years. Central bankers can and often do devalue national currencies, but gold tends to maintain its inherent value.
There are many good reasons to own gold stocks. Among the best are wealth preservation and the potential for capital appreciation over time. If you agree, here’s a list of the best gold stocks, along with one exchange-traded fund (ETF), to buy and hold today:
| Stock | Market capitalization | Year-to-date performance as of May 8 |
| Eldorado Gold Corp. (ticker: EGO) | $3.1 billion | 16.3% |
| Harmony Gold Mining Co. Ltd. (HMY) | $5.6 billion | 45.4% |
| Barrick Gold Corp. (GOLD) | $29.6 billion | -7% |
| Gold Fields Ltd. (GFI) | $14.6 billion | 12.6% |
| SPDR Gold Shares (GLD) | $61.6 billion* | 11.7% |
*Denotes assets under management for this ETF.
Eldorado Gold Corp. (EGO)
EGO is a $3 billion gold mining and exploration company with several high-quality assets, primarily in Canada, Greece, Romania and Turkey. In addition to the mineral rights it owns in highly productive mines, the company’s strength is in its experienced and knowledgeable management team. It has managed to combine a high level of technical expertise with an uncommon dedication to environmentally responsible gold mining, all while growing profits over the long run.
The crown jewels in the company’s portfolio are the Kisladag and Efemcukuru mines in Turkey and the Lamaque mine complex in Canada. The company’s 100% interest in these valuable mines means that EGO is well-positioned for continued growth throughout the foreseeable future.
In 2023 the company reported the production of 485,139 ounces of gold. This year, according to company production guidance, it will produce between 505,000 and 555,000 ounces. Wall Street analysts expect that production to translate into $1.2 billion in revenue for the year.
Harmony Gold Mining Co. Ltd. (HMY)
With a healthy market cap of $5.6 billion, HMY is an established leader in the exploration, mining and production of gold. Additionally, the company has a significant and increasing footprint in the copper market.
HMY is makes a conscious effort to minimize negative environmental impacts from its mining and exploration activities. It bills itself as one of the first sustainable mining companies in the gold and copper industries.
The company’s principal mine, the Harmony Mine, is located in South Africa and has been a significant contributor to that country’s gold production for many years. It has ongoing development projects in Papua New Guinea and Australia as well.
HMY is a consistently profitable firm. Wall Street is looking for 94 cents in earnings per share (EPS) on $3.3 billion in revenue for fiscal 2024. Those numbers are expected to grow to $1.35 in EPS and $3.7 billion in revenue next year.
Barrick Gold Corp. (GOLD)
Barrick Gold is one of the most well-known and widely held gold stocks on the market. This $30 billion exploration, mining and production company is expected to generate about $12.5 billion in revenue in 2024 and roughly $13.9 billion in 2025.
GOLD is active in copper and silver mining, but most of the company’s revenue and earnings come from gold. Some of its most productive assets are located in Argentina and the Dominican Republic. It also operates in the U.S., but to a more limited extent.
In straightforward terms, GOLD owns one of the world’s largest and most prized portfolios of top-quality gold and copper assets in the world. Its future growth will be fueled by an excellent pipeline of exploration projects that are constantly adding to the firm’s already robust reserves of precious and industrial metals.
The stock has a forward dividend yield of 2.4%. All serious gold stock investors should consider making GOLD a core, long-term holding.
[READ: 7 Commodity Stocks to Buy for Dividends, Inflation Hedging]
Gold Fields Ltd. (GFI)
GFI is a $14.6 billion gold production firm operating in South Africa, Chile, Canada, Australia and several other jurisdictions around the world. In addition to its gold production, which is the most prominent part of the company’s business, GFI explores for silver and copper deposits, making it a well-balanced, diversified mineral company.
Gold Fields is in good shape financially and produces consistent profits. The consensus on Wall Street is that GFI will collect $5.3 billion in revenue and produce $1.13 in earnings per share in 2024. As impressive as those numbers are, Wall Street is expecting revenue to grow 12% to $5.9 billion and EPS to increase 40% to $1.58 in 2025.
GFI is not what anyone would call an income stock, but it’s worth noting that the healthy revenue it produces is easily able to sustain the current forward dividend of 44 cents per share which, based on the current stock price, equates to a yield of 2.7%.
SPDR Gold Shares (GLD)
GLD is an asset-backed ETF with a simple objective: to mirror the performance of gold bullion less the fund’s moderate expense ratio of 0.4%
GLD claims to be the first U.S.-traded gold ETF and the first U.S.-listed ETF to be backed by a physical asset. Pure gold — in the form of bullion, bars and coins — is the only asset in this fund’s portfolio. In that sense, this ETF is as close to a pure play on gold as you can get without buying and storing the precious metal yourself.
Of course, GLD will carry the same risks as owning physical gold, but because it’s an ETF, it’s a flexible security that can be bought and sold on any business day. Investors can also buy on margin, utilize limit or stop orders, and even sell shares short if they think gold is heading down.
The bottom line on GLD is that it’s a simple and convenient way to gain direct exposure to the gold market. Some investors may choose to buy gold bullion, bars or coins directly. That is a personal decision that depends on the individual’s situation and resources. Most people, however, don’t have the space and security to store physical gold, and buying and selling metals comes with high transaction costs. For the average investor who wants to profit from the gold market, the GLD is the better choice.
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5 of the Best Gold Stocks to Buy Now originally appeared on usnews.com
