Its share of the NGM joint venture, Pueblo Viejo, and Loulo-Gounkoto account for around two thirds of Barrick’s midcycle production in 2027. Red 5 Limited is an Australian gold mining company focused on the exploration and development of gold deposits in the Western Australian Goldfields region. The company’s flagship project is the Darlot Gold Mine, which is located approximately 170 kilometres east of Kalgoorlie.

Better known for its copper production, Freeport-McMoRan produced 56.3 MT of gold in 2022. The vast majority of that production originates from the company’s Grasberg mine in Indonesia, which ranks as the world’s second largest gold mine by production. According to Newcrest, it has one of the largest group gold ore reserves in the world. With an estimated 52 million ounces of gold ore reserves, its reserve life is approximately 27 years. The number one gold-producing company on this list, Newmont, made a US$19.5 billion bid for Newcrest in April 2023.

Gold Fields (NYSE:GFI)

By focusing on operating large mines with significant remaining resources, Barrick can produce gold at a relatively steady pace for years. The company expects to produce an average of roughly 6.5 million ounces of gold equivalent (which includes its copper output) annually through 2032. Gold stocks are public companies that extract, process, finance and trade gold. The best gold stocks on our list above are focussed on either gold mining or gold streaming. Franco-Nevada is one of the few gold companies that can boast a steadily rising share price over the last decade.

• According to data from Bankrate.com, the average annual return on gold has been 0.8%.
• By focusing on operating large mines with significant remaining resources, Barrick can produce gold at a relatively steady pace for years.
• St Barbara Limited is a gold mining and exploration company based in Perth, Western Australia.

Forbes Advisor has provided this list of what we believe to be the seven best gold stocks to own right now. However, each individual investor needs to examine their own investing approach and risk tolerance before deciding which is the best gold stock for them. First, research gold companies and decide how much money you intend to invest in gold stocks. If you’re looking to hold gold stocks in your portfolio over the long term, you should be mindful of the industry’s volatile nature.

According to Scotiabank, the average mine life of the miners it covers has fallen from 19 years to 12 – the shortest in 30 years. Importantly, juniors are a cost-effective answer to the problem of gold reserves depletion. Because gold reserves are being used up faster than they are being replenished, it behooves the industry to come up with a strategy for reversing this trend – one that doesn’t involve high-grading and M&A.

Osisko Gold Royalties

Importantly, analysts remain cautious over whether to announce the next bull market. Morgan Stanley recently warned that the stock market is “far from being out of the woods,” despite a sizable pullback in recent weeks. That’s why most gold investors prefer to just buy shares of a bullion-backed ETF. So you could say that investors treating gold as a hedge against inflation is a bit of a self-fulfilling prophecy. Do keep in mind, though, that the fixed-rate I-Bond is a more stable inflation hedge that’s also taxed much lower than gold.

In short, gold mining stocks do not get enough attention regardless of which way the overall market is headed. Gold has a price that tends to be relatively uncorrelated to the broader economic cycle. In addition, it has perceived countercyclical, safe-haven investment attributes while also being seen as an inflation hedge. Investment and jewelry take up most of global gold demand, and a demand slowdown is the key risk to cash flows. A reduction in Chinese fixed-asset investment, lowering demand for copper, would also have some impact.

Picking the best gold stocks

Moreover, its levered free cash flows are over 50%, mind-boggling considering the volatility in the business environment. With its disciplined capital management and low-risk business model, FNV stock should stay strong for the foreseeable future. A closer look at this subgroup of the basic materials sector and some of the best metals stocks to invest in. Gold has rallied over the past year to more than $2,000 an ounce as of early 2023, driven by inflationary and geopolitical concerns.

Well, when demand for gold bullion rises, you may just want a stake in the companies swinging the pickaxes (so to speak). Case in point, between 2008 and 2011 when the value of gold rose 300%, shares of GDX rose nearly 400%. It is easier to own gold stocks, which provide liquidity and security. “Gold may or may not be a particularly good inflation hedge,” but it has held its value over time, according to Forbes Advisor.

Sandstorm Gold Ltd. (NYSE:SAND)

The drop in revenues was a result of a 12% decline in the average realized gold equivalent price and a 7% decrease in the number of gold equivalent ounces (GEO) sold to 6,620 in Q3. With the exception of Wheaton and Franco-Nevada, these top holdings are the world’s largest gold mining companies. Agnico vaulted up the list in 2022 by completing its merger with fellow gold miner Kirkland Lake Gold.

$23 on a $10k investment isn’t much in the short term, but over 30 years in an IRA — especially as your initial $10,000 investment grows to $20,000 and $40,000 — a high expense ratio can make a four-figure difference. Whatever your reasoning, there are many ways to invest in gold that don’t necessarily involve buying fun-sized ingots from a vending machine. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here.

That said, FNV is in a range between $169 and $106 since 2020, and the price is currently in the middle of this range. For a long-term stock investment, this is one of the better choices due to the steady cash flow the company brings in and the generally rising sales, EPS and share price. De Grey Mining is a gold exploration and development company that operates primarily in the Pilbara region of Western Australia. The company’s flagship project is the Hemi gold deposit, which is located approximately 1,500 kilometres north of Perth. De Grey Mining is focused on advancing the Hemi deposit through exploration and development activities, with the goal of becoming a significant gold producer in the region. The Company has interests in mining for aluminum, borax, coal, copper, gold, iron ore, lead, silver, tin, uranium, zinc, titanium, dioxide feedstock, diamonds, talc and zircon.

Traders are especially bullish on the stock because the company is more than a decade away from exhausting its current mines and they recently stocked up on cyanide and explosives. The company expects to increase gold production in 2023 compared to 2022. Disappointing production contributed to an 18% decline in share price since February 1.

“Gold has historically performed well when the US dollar softens due to their strong negative correlation, and we see another round of dollar weakness over the next 6–12 months,” UBS analysts said. Data compiled by https://g-markets.net/helpful-articles/how-to-use-an-inverted-hammer-candlestick-pattern/ the World Gold Council shows that the pace at which central banks are buying gold is also accelerating. In 2022, the net purchases totaled 1,078 metric tons, which was the most ever on record dating back to 1950.

Others invest in gold as a way to diversify their portfolio, as the gold price can often move independently of other asset classes. Evolution Mining is a leading gold mining company based in Australia. The company has a diverse portfolio of assets, including gold mines in Queensland, New South Wales, and Western Australia. Evolution is known for its focus on minimising its environmental impact.

Summary of the 5 best gold stocks

Conversely, demand increases when the greenback loses value, making gold cheaper for offshore buyers. Although the U.S. dollar and gold often have an inverse relationship, both can move in the same direction. For example, during periods of global uncertainty, both assets may rise as investors flock to save-haven investments.