What Are The Best Gold Stocks To Buy Now
According to a report by S&P Global, the sentiments for gold investment have risen over the past few months due to higher inflation and increasing geopolitical risks surrounding the Russian invasion of Ukraine. Since early March 2022, gold price has hit a 19-month high of around $2,039/oz and has stabilized around $1,900/oz. In most major economies, inflation has reached multi-decade highs and central banks are struggling to set it to the target range of 2%-3%, further fueling the demand for the precious commodity.
what are the best gold stocks to buy now
In October, as inflation appeared to be peaking and the market started growth numbers again, the price of gold fell 2% to US$1,639/oz due to the rising dollar strength. Latest research shows that the global gold mining market will grow from $214.1 billion in 2021 to $249.6 billion by 2026, at a compound annual growth rate of 3.1% for the period of 2021-2026. Some of the top stocks in the gold market that elite investors are using to profit off this gold boom include Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Franco-Nevada Corporation (NYSE:FNV).
The companies that operate in the gold sector and are best positioned to offer investors some solidity amid rising recession fears were selected for the list. The business fundamentals and analyst ratings for these firms are also discussed to provide readers with some additional context for their investment choices. An extensive database of around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to quantify the hedge fund sentiment around each stock.
AngloGold Ashanti Limited (NYSE:AU) operates as a gold mining company in Africa, the Americas, and Australia. AngloGold Ashanti revealed that it is targeting a 30% reduction to its scope 1 and 2 greenhouse gas emissions by 2030. The company is committed to achieving net zero emissions by 2050 through a combination of renewable energy projects, fleet electrification and lower-emission power sources.
Just like Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Franco-Nevada Corporation (NYSE:FNV), AngloGold Ashanti Limited (NYSE:AU) is one of the best gold stocks to buy for recession according to elite investors.
B2Gold Corp. (NYSE:BTG) operates as a gold producer with three operating mines in Mali, the Philippines, and Namibia. On November 2, B2Gold Corp and AngloGold Ashanti, a limited global gold mining company, said that they will put their $925 million Gramalote gold project in Colombia up for sale before the end of the year.
On November 23, Stifel analyst Ingrid Rico maintained a Buy rating on B2Gold Corp. (NYSE:BTG) stock and lowered the price target to C$7 from C$7.25, highlighting the third-quarter results and maintaining the near-term and longer-term gold and silver price estimates.
On October 17, Barclays analyst Matthew Murphy maintained an Equal Weight rating on Royal Gold, Inc. (NASDAQ:RGLD) stock and lowered the price target to $108 from $110, noting that the gold equities are preferred over base metal equities as global growth slows.
In addition to Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Franco-Nevada Corporation (NYSE:FNV), Wheaton Precious Metals Corp. (NYSE:WPM) is one of the best gold stocks to buy for recession according to elite investors.
Gold is among the oldest investment assets in history. Some investors swear by gold while many others disdain it. But few would deny that the yellow metal plays a unique role in markets, offering a store of value that is unlike almost any other asset.
Owning physical gold is expensive and complicated. So buying gold stocks is a great way for individual investors to get the exposure they need in their portfolios. Forbes Advisor has compiled a list of the best gold stocks whose key metrics demonstrate strong fundamentals and good value.
Torex has not increased its shares outstanding in the last few years. This is a favorable move, since many companies in the gold industry continue to issue shares for cash, diluting existing shareholders.
DPM has the second-highest EPS growth estimate on the list, after Torex. Sales had been increasing steadily every year since 2016, but dipped slightly in 2022. Like most gold miners, earnings can be erratic, fluctuating between positive and negative, although the company has posted three straight years of positive EPS.
Franco-Nevada is one of the few gold companies that can boast a steadily rising share price over the last decade. 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.
Gold is a cyclical commodity, and companies in the industry also tend to generate cyclical results. Their profits rise when gold prices are high and decline when gold is cheap. Keep this in mind when using P/E ratios.
Note: An experienced financial analyst selected the stocks above, but they may not be right for your portfolio. Before you purchase any of these stocks, do plenty of research to ensure they align with your financial goals and risk tolerance.
Gold mining is the practice of extracting gold ore from the earth and processing it into gold bullion. Gold streaming is the provision of upfront financing to gold miners in exchange for the option to buy finished gold bullion at a discount in the future.
The share prices of gold stocks do not directly track the day-to-day price of gold in commodities markets, but their revenues are correlated with the gold prices. Investors who own gold stocks aim to benefit from changes in the price of gold without having to own or store physical gold themselves.
The best gold stock depends on your personal investing goals. 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.
The goal of purchasing any stock is to buy low and sell high. However, timing the market can be a difficult task. Do your due diligence, consult with a financial advisor and decide when the time is right for you to purchase gold stocks.
Cory has been a professional trader since 2005, and holds a Chartered Market Technician (CMT) designation. He has been widely published, writing for Technical Analysis of Stock & Commodities magazine, Investopedia, Benzinga, and others. He runs TradeThatSwing.com, has authored several trading courses and books, coaches individual clients, and regularly trades stocks, currencies, and ETFs.
Why it stands out: As the second-largest publicly traded gold stock based on market cap, Newmont is impossible to ignore. Financial reports showed three years of rising sales before a slight dip in 2022. Right now, the stock is considered a momentum play, with analysts cautious despite a target price 54% above the current price of $44.49.
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.
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.
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.
One of the catalysts behind investing in gold is that the precious metal has traditionally been considered a safe haven for investors in times of recession as it provides an effective hedge against inflation. Prices in the U.S. are staying stubbornly high, and the Federal Reserve has been aggressively hiking interest rates to counter the red-hot inflation.
Will gold slide below this mark? Phillip Streible, chief market strategist at Blue Line Futures, believes that for many investors, "the gold price is falling to a major pain threshold. But the threat of a recession hasn't gone away. The Federal Reserve, with its aggressive monetary policies, is on track to break the economy, so gold's uptrend remains intact."
Marc Chandler, managing director at Bannockburn Global Forex, is of the opinion that gold prices are likely to fall to $1,800 an ounce over the near term. However, he adds that "buying [gold] on further weakness with a stop below $1,800 may offer an attractive risk-reward."
Newmont (NEM (opens in new tab), $44.22), founded in 1921, is a large producer of gold, copper, silver, zinc and lead. The company's mines span North and South America, Australia and Africa. The company has been in the news recently following a $16.9 billion bid for Australian-based mining company Newcrest. This deal has triggered a buzz in the gold mining sector regarding new M&A deals taking place.
Additionally, NEM recently reported fourth-quarter earnings. Newmont posted revenues of $3.2 billion in Q4, a 6% year-over-year decline due mostly to lower realized gold prices. Analysts were expecting revenues of $3.1 billion. Adjusted earnings came in at $1.85 per share versus $2.96 in the same period last year.
Newmont's average realized gold price per ounce dropped by $40 per ounce year-over-year to $1,758 per ounce in Q4, while attributable gold production stayed more or less flat at 1.63 million ounces versus 1.62 million ounces in the same period last year.
For fiscal 2023, the company has guided for production in the range of 5.7 to 6.3 million gold ounces, while AISC are only expected to increase further to be between $1,150 and $1,250 per ounce. More disappointing news for investors: NEM is targeting its annualized dividend payout to be in the range of $1.40 to $1.80 per share, a decline from $2.20 per share in 2022. 041b061a72