Global central banks are now holding more gold than U.S. Treasuries. Reports circulating this week indicate that, for the first time since 1996, central banks’ foreign exchange holdings hold more gold than U.S. Treasury securities. This remarkable data comes as the precious metal has soared to all-time highs. While rumors had circulated throughout the year that central banks were accumulating the precious metal, the numbers indeed confirm this. According to the World Gold Council, global central banks bought 1,082 metric tonnes of gold in 2022, 1,037 metric tonnes in 2023, and a record 1,180 metric tonnes in 2024. This is a massive increase from the average 400 to 500 tonnes of gold purchased during the previous decade.
The case for gold and gold miners is compelling for two reasons. First, gold can serve as a strategic hedge against inflation. Second, some top miners extract silver and other essential commodities for industrial applications. Spot gold has surged to all-time highs, surpassing the levels reached in 2020. From a technical perspective, the gold market appears poised for a potential massive breakout, particularly if the ongoing conflicts in the Middle East and Ukraine continue or escalate, and the economy experiences a significant downturn.
We screened our 24/7 Wall St. best gold-mining ideas, and five still offer attractive entry points. We always like to remind our readers that the SPDR Gold Shares ETF (NYSE: GLD) is one of the best pure plays on gold for investors. The trust that sponsors the fund holds physical gold bullion and a portion of cash. Each share represents one-tenth of an ounce of gold. Please note that the fund does not pay a dividend.
Why do we cover gold-mining stocks?
Proper asset allocation should always include at least a single-digit percentage holding of precious metals, such as gold and silver. Not only do they hedge against inflation, which could be significant now and in the long term, but they can also help if the market enters a correction or bear market mode, as they tend to trade inversely to markets.
AngloGold Ashanti
Somewhat off the radar, this stock may be offering the most attractive entry point. AngloGold Ashanti PLC (NYSE: AU) is a global gold-mining company with a diverse portfolio of operations, projects, and exploration activities in 10 countries across four continents.
The company’s diverse portfolio includes approximately 11 operations in:
- Argentina
- Australia
- Brazil
- The Democratic Republic of the Congo
- Egypt
- Ghana
- Guinea
- Tanzania
The company’s portfolio includes Africa, the Americas, and Australia.
Its African portfolio includes Kibali, managed by Barrick Mining, as well as Egypt (Sukari), Ghana (Iduapriem and Obuasi), Guinea (Siguiri), and Tanzania (Geita).
The Americas hosts three of its operations, one in Argentina and two in Brazil, as well as two greenfield projects in Colombia and a significant new greenfield development in Nevada.
Australia hosts two of its operations, which include Sunrise Dam and Tropicana, both in the north-eastern goldfields in the state of Western Australia.
J.P. Morgan has a Buy rating with a $63 target price.
Barrick Mining
Barrick Mining Corp. (NYSE: B) is a company that produces gold and copper with 16 operating sites in 13 countries. This stock is a top contender in the sector, offering a promising entry point. Barrick Mining, formerly known as Barrick Gold, is a gold and copper producer that engages in the production and sale of gold and copper, as well as related activities such as exploration and mine development.
The company has ownership interests in producing gold mines that are located in:
- Argentina
- Canada
- Côte d’Ivoire
- The Democratic Republic of Congo
- The Dominican Republic
- Papua New Guinea
- Tanzania
- United States
Barrick Mining has copper mines located in Zambia, Chile, and Saudi Arabia.
Its operations include:
- Nevada Gold Mines
- Bulyanhulu
- Hemlo
- Jabal Sayid
- Kibali
- Loulo-Gounkoto
- Lumwana
- North Mara
- Porgera
- Pueblo Viejo
- Tongon
- Veladero
- Zaldivar
The Bulyanhulu operation is located in north-west Tanzania, over 55 kilometers south of Lake Victoria and 150 km southwest of the city of Mwanza.
The Jabal Sayid copper operation is located 350 km northeast of Jeddah in the Kingdom of Saudi Arabia.
The Lumwana copper mine is a conventional open-pit operation.
Royal Bank of Canada has an Overweight rating with a $26 target, which likely goes higher soon.
Endeavor Silver
This small-cap gem has significant upside potential. Endeavor Silver Corp. (NYSE: EXK) is a Canada-based mid-tier precious metals company. With operations in Mexico and Peru, and the development of its mine in Jalisco state, Terronera focuses on contributing to the mining industry and the communities in which it operates.
In addition, it has a portfolio of exploration projects in Mexico, Chile, and the United States.
It has two producing silver-gold mines in Mexico:
- Guanacevi Mine in Durango (the Guanacevi Project)
- Bolanitos Mine in Guanajuato (the Bolanitos Project)
In addition to operating these two mines, the company is advancing one development and two exploration projects in Mexico:
- The Terronera property in Jalisco state (the Terronera Project)
- The prospective Pitarrilla property in Durango State
- The Parral properties in Chihuahua
Kolpa, its third producing mine, is a silver mine located in the Huachocolpa region of Huancavelica Province, Peru. Its other exploration projects include Bruner, Aida, and Lourdes.
Franco-Nevada
Franco-Nevada Corp. (NYSE: FNV) is a Toronto, Ontario-based gold-focused royalty and streaming company in Latin America, the United States, Canada, and elsewhere. This is another off-the-radar play that offers numerous opportunities for investors to generate returns.
It operates through two segments:
- Mining
- Energy segments
The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals. It engages in the sale of crude oil, natural gas, and natural gas liquids.
While the company is one of the leading gold-focused royalty and streaming companies, with the largest and most diversified portfolio of cash-flow-producing assets, its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Traits that some of the others do not offer.
Kinross Gold
Kinross Gold Corp. (NYSE: KGC) is a gold-mining company with operations and projects in the United States, Brazil, Mauritania, Chile, and Canada. The company is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of gold-containing ore, and reclamation of gold-mining properties.
Its operations and projects include:
- Fort Knox
- Round Mountain
- Bald Mountain
- Manh Choh
- Paracatu
- La Coipa
- Tasiast
- the Great Bear project
Fort Knox is an open-pit gold mine located near Fairbanks, Alaska. Round Mountain is an open-pit mine located in Nevada. Paracatu is a cornerstone operation located near the city of Paracatu in Brazil’s Minas Gerais region.
The Tasiast mine is an open-pit operation located in northwestern Mauritania. The La Coipa mine is located in the Atacama region in Chile. The Great Bear is a development project in Canada.
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