Gold prices have surged over 45% in 2024, reaching multiple record peaks and heading toward their strongest annual performance in 45 years. Beyond purchases by central banks, the precious metal has gained momentum from the Federal Reserve’s interest rate reductions, the global shift away from dollar dependence, and increased investment in gold ETFs. In addition, with the stock market seemingly printing new all-time highs every week, gold and the gold miners are seen as a solid hedge against a market meltdown after a massive run since 2022.
For years before the massive rally in gold, there was a degree of scorn from Wall Street and “so-called” investment professionals for those who invested in Gold. Laughed at as “Gold Bugs,” the argument against the precious metal, even though Gold is one of the most significant financial assets in the world and central banks have been loading up on the commodity, is that it’s not typically a tradable investment. Warren Buffett owns zero and has previously said it is an investment with “no utility.”
The case for gold and gold miners is compelling for two reasons. Firstly, gold can serve as a strategic hedge against inflation. Secondly, some top miners extract silver and other essential commodities for industrial applications. Spot gold has surged above the highs reached in the summer of 2020, and from a technical perspective, the gold market is showing signs of a potential massive breakout to higher levels.
We screened our 24/7 Wall St. gold mining database’s current best ideas, and all 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 that are trading down.
Agnico Eagle Mines
This is one of the best-known miners and a top pick for conservative accounts seeking a gold position that pays a small 0.94% dividend. Agnico Eagle Mining Ltd. (NYSE: AEM) is a Canada-based and led senior gold mining company engaged in producing precious metals from operations in Canada, Australia, Finland, and Mexico, with a pipeline of exploration and development projects.
Its operations include:
- Canadian Malartic Complex
- Detour Lake
- Fosterville
- Goldex, Kittila
- La India
- LaRonde Complex
- Macassa
- Meadowbank Complex
- Meliadine
- Pinos Altos
Its exploration sites include:
- Barsele
- Delta
- Dubuisson
- El Barqueno
- Hammond Reef
- Hope Bay
- Jennings
- Morelos Sur
- North Madsen
- Northern Territory
- Pandora/Wood-Pandora
The Canadian Malartic complex is located in the town of Malartic, 25 kilometers (km) west of Val-d’Or in northwestern Quebec.
The Fosterville mine is a high-grade, low-cost underground gold mine, located 20 km from the city of Bendigo. It also owns a 100% interest in all its properties (128,680 hectares) in Quebec. Its projects also include Marban Alliance, Horizon, Alpha, Launay, Peacock, and others.
AngloGold Ashanti
Somewhat off the radar, this stock may offer the most attractive entry point with a 1.29% dividend yield. 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 Gold Corporation, 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, United States.
Australia hosts two of its operations, which include Sunrise Dam and Tropicana, both located in the north-eastern goldfields of Western Australia.
Barrick Mining
Barrick Gold is a mining 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 and a 2.20% dividend. Barrick Mining Corporation (NYSE: B) and Randgold Resources completed their merger on January 1, 2019, propelling them to the forefront as the world’s largest gold company in terms of production, reserves, and market capitalization.
The company holds a:
- 50% interest in the Veladero mine located in the San Juan Province of Argentina
- 50% interest in the KCGM, a gold mine located in Australia
- 95% interest in Porgera, a gold mine located in Papua New Guinea
- 50% interest in the Zaldavar, a copper mine located in Chile
- 50% interest in the Jabal Sayid, a copper mine located in Saudi Arabia
Barrick also owns gold mines and exploration properties in Africa, as well as gold projects in South America and North America. It has a strategic cooperation agreement with Shandong Gold Group Co., Ltd.
Endeavor Silver
This is a small-cap gem with 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 Corporation is a Toronto, Ontario, Canada-based gold-focused royalty and streaming company. This is another off-the-radar play that offers numerous opportunities for investors to generate returns and pays a small 0.67% dividend. Franco-Nevada Inc. (NYSE: FNV) is a gold-focused royalty and streaming company in Latin America, the United States, Canada, and internationally.
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 don’t offer.
Kinross Gold
Kinross Gold Corporation (NYSE: KGC) is a gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile, and Canada, offering a small dividend yield of 0.47%. 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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