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 experience.
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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.
Here’s a list of the best gold stocks, along with one exchange-traded fund (ETF), to buy and hold today:
| Stock | Market Capitalization | Beta** |
| Barrick Gold Corp. (ticker: GOLD) | $35.2 billion | 0.55 |
| Robex Resources Inc. (OTC: RSRBF) | $313.3 million | — |
| Harmony Gold Mining Co. Ltd. (HMY) | $6.2 billion | 1.78 |
| New Gold Inc. (NGD) | $2.2 billion | 1.31 |
| Gold Fields Ltd. (GFI) | $13.8 billion | 1.20 |
| SPDR Gold Shares ETF (GLD) | $74.6 billion* | 0.21 |
*Denotes assets under management for this ETF.**A measure of an asset’s risk compared to a benchmark. A beta higher than 1 typically carries more risk and along with higher returns. A stock with a beta lower than 1 tends to carry less risk and lower returns.
Barrick Gold Corp. (GOLD)
Barrick Gold is one of the most well-known and widely held gold stocks on the market. GOLD is active in copper and silver mining, but most of the company’s revenue and earnings come from gold. Its operations span 18 countries across four continents and include the single largest gold-mining complex in the world.
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.
This $35 billion exploration, mining and production company produced over 4 million ounces of gold in 2023, translating into nearly $1.3 billion in earnings. It anticipates producing up to 4.3 million ounces in 2024.
The stock has a forward dividend yield of nearly 2% and has a fair market value of $22, according to Morningstar. All serious gold stock investors should consider making GOLD a core, long-term holding.
Robex Resources Inc. (OTC: RSRBF)
This $313 million gold company may be small compared to others on this list, but it is mighty. One of the few gold industry stocks to earn more than three stars from Morningstar, RSRBF deserves a look from prospective gold investors.
The gold production company is based on Quebec, Canada, but aspires to be a multi-mine, multi-jurisdiction gold producer in West Africa. It owns two assets currently: a gold mine in Mali and the Kiniero Gold Project in Guinea.
Robex Resources focuses on environmental sustainability and supporting local economies by hiring almost exclusively native workers. The company also works to advance sustainable power sources and minimize its environmental footprint.
As an added bonus, Robex Resources stock has a fair market value of $3.25, according to Morningstar. An important point to be aware of with this stock is how thinly traded it is — only about 8,000 shares trade hands each day on average. This means if you buy in, you may not be able to get back out for a price you like.
[READ: 8 Best Stocks to Buy Now With $1,000]
Harmony Gold Mining Co. Ltd. (HMY)
With a healthy market cap of over $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 makes a conscious effort to minimize negative environmental impacts from its mining and exploration activities. It contributes directly to eight of the United Nations’ 17 Sustainable Development Goals (SDGs), including clean water and sanitation, climate action and gender equality. HMY also contributes indirectly to seven other SDGs, such as zero hunger and poverty.
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 has been a consistently profitable firm over the past four years. It reported a total profit of approximately $555 million in 2023, and analysts expect even more from the company over the next three years.
New Gold Inc. (NGD)
Gold isn’t an asset class typically associated with high growth through capital appreciation, but if that’s what you’re after, New Gold Inc. could be the stock for you. It has already nearly doubled in price this year, returning over 187% in the past 12 months. Morningstar analysts think it has farther to run, putting its fair market value at $2.79.
The company has two core producing assets in Canada: a gold-silver mine in Ontario and a gold-copper mine in British Columbia. It produced over 423,500 gold equivalent ounces in 2023 with $71 million in cash flow from operations for the year. Analysts expect even better earnings going forward.
Like others on this list, NGD advertises a commitment to sustainable mining with annual environmental, social and governance (ESG) reports. Morningstar gives it a medium ESG rating. The analysts also give it a fair market value of $2.79.
Gold Fields Ltd. (GFI)
GFI is a nearly $14 billion gold production firm operating in South Africa, Chile, Australia and several other jurisdictions around the world. In addition to its gold production, 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 produce $1.25 in earnings per share in 2024.
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 30 to 40 cents per share which, based on the current stock price, equates to a trailing yield of 2.5%.
SPDR Gold Shares ETF (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 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, use 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 your 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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6 of the Best Gold Stocks to Buy Now originally appeared on usnews.com
Update 10/14/24: This story was previously published at an earlier date and has been updated with new information.
