In this article we will cover current gold stocks that are hot with details about each company’s background, its economic growth potential, advice from the experts, and recommendations as to which stock, or stocks might be the right fit for you.
Looking to invest in gold, but not sure where to start? Gold can be tricky to invest in. Some people consider it a “must-have” investment or believe that their portfolio isn't complete without investing in gold. However, even though it can be difficult to decide exactly which gold mining company to invest in, having a solid investment strategy will always be a smart move.
One expert’s opinion is that you should devote 5-10% of your portfolio to gold and rebalance periodically to ensure that the value of your gold stays approximately the same. However, if you already have your own strategy, all you need to do now is peruse our list!
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Barrick Gold, a gold mining stock, is one of the best gold stocks to invest in because it’s the leading gold producer. In 2014, it produced more than six million ounces of gold--over one million more than its top competitor. Of all its strengths, including its large size and scale, the biggest standout is Barrick Gold’s high-grade reserve base.
Barrick Gold also stands out as one of the lower-priced stocks to invest in. It sells for less than ten times its trailing twelve months’ cash flow from operations per share. Barrick is also showing great potential for growth as it has advanced around 120% so far this year.
The corporation’s website shares its goal: “Our vision is the generation of wealth through responsible mining—wealth for our owners, our people, and the countries and communities with which we partner.” Barrick Gold aims to be the leading mining company focused on gold by operating high-quality assets, operational excellence, and allocating capital strategically.
Although based in Canada, Barrick Gold runs mining operations based in 10 different countries. This corporation’s stock price, consistency, and detailed innovation plans for the future make it one of the top gold stocks on the market today.
Newmont Mining claims that “We will be recognized and respected for exceptional economic, environmental and social performance.” That alone shows prospective stock buyers that the corporation doesn’t just focus on gold, but its impact on the world from many different lenses.
The company was founded in 1921 and now has about 28,000 employees across 6 different countries. Along with its size and scale, Newmont also has the strength of its industry-leading debt metrics which make it one of the top 10 gold stocks. Its potential to grow gold production continues to be a reason to that it is one of the best gold stocks to buy now.
In addition, Newmont has given a five-fold return this year, adding more value to this stock than ever before. Despite global economic uncertainties, this corporation has thrived, showing investors that it is a great gold stock to buy. According to some experts, Newmont Mining is different from its competitors in that it has a solid position to boost output as well as a lower cost profile.
Yamana Gold’s simple mission is to “mine precious metals profitably and responsibly.” The company is currently working toward several goals, including increasing production, expanding operations, focusing on exploration, managing expenditures, containing cost, and delivering strong results. All this work has paid off--Yamana Gold is one of the best gold stocks!
There are several reasons to invest in Yamana Gold. As a company, it has an effective debt-reduction strategy that allows their cash flow to be used for other purposes, like shareholder distributions and and growth spending. In addition, Yamana dropped its AISC (all-in sustaining costs) last year by $40 per ounce of gold. Financially, Yamana Gold has a clear plan and strong hold on its economic standing.
Kinross Gold Corporation was founded in 1993, but just because it’s a young business doesn’t mean that it’s not one of the top gold stocks! With a diverse portfolio of mines in 6 different countries, Kinross has enjoyed success while also focusing on its primary goals. From the Kinross Gold Corporation itself, “The Company is focused on delivering value through operational excellence, financial discipline and responsible mining.”
The company’s four core values show that this corporation is not simply a gold mining company. Kinross aims to put people first, have outstanding corporate citizenship, maintain a high performance culture, and exercise rigorous financial discipline. This is a global mining company that truly cares, and that shows through its success.
Kinross has recently been reducing its debt considerably, allowing their cash flow to be used for more productive and innovative purposes. The company has also been driving costs lower. This means that it can capture higher cash flows and eventually warrant premium valuations.
This company is truly global, covering 4 regions, 9 countries, and 17 operations. It’s focused in South Africa, which is a stark difference from many of its competitors. According to production measurements, AngloGold Ashanti is the third-largest gold mining company in the world. The company aims to focus on people, safety, and sustainability, to optimize overhead, costs, and capital expenditure, and maintain long-term optionality, among other goals.
AngloGold stands out among many others in the business because it sells for less than 10 times its trailing 12 months' cash flow from operations per share. The company also recently lowered its AISC by 11%, making costs lower and eventually leading to premium valuations. AngloGold has also made huge progress in the area of debt reduction, giving the company more opportunities for growth spending, which is something investors are willing to pay a premium for.
This company stands out not just because it’s financially successful, but also because its core values correlate with its real-life actions. AngloGold Ashanti is a company that follows through and provides its investors with major profits.
Harmony Gold Mining Company Ltd.
Although not as large as some of the other companies on this list, Harmony Gold MIning Company is still one of the best. Compared to others on this list, it is an older company, founded in 1950. Throughout the timeline of its business, Harmony has truly cracked the gold mining code.
Harmony Gold Mining Company operates in South Africa and Papua New Guinea and claims to have low debt along with robust margins and earnings. Safety and accountability are two of Harmony’s main values, along with honesty and achievement. Its main business strategy involves creating value by increasing margins and generating profit.
Some impressive statistics show that Harmony has seen its shares surge about 260% so far this year. It’s predicted that the company’s earnings growth will be around 225% for the year. As the third-largest gold producer in Africa and the twelfth-largest in the world, these figures show that Harmony will only continue to grow.
Goldcorp is a Canadian company with 10 gold mines in Canada, Mexico, Central and South America. Five key attributes lead this business: high quality production, low cash costs, maintaining an investment-grade balance sheet, operating in regions with low political risk, and and conducting business in a responsible manner.
Many investors choose Goldcorp for its proven strategy and consistent focus. This year, Goldcorp is up 40%, showing that its strategy is paying off. Two new mines went into production in 2015, giving a possible reason for the company’s financial growth. Although more expensive than some stocks, Goldcorp has managed to maintain a lower debt level than its cheaper rivals, allowing it to boast of an investment-grade balance sheet.
Founded in 1981 as a Royal Resources Corporation, Royal Gold has continued to grow and succeed. Today, it has 38 producing properties, 24 development stage properties, 50 evaluation properties, and 81 exploration stage properties. Clearly, this company knows what it’s doing when it comes to growth and innovation.
Royal Gold has minimal net debt, showing that it’s a reliable company that has the ability to continue to grow and profit. Experts say that Royal Gold tends to have a more stable business because it doesn’t directly face many risks or operating costs as a miner. It also has low, locked-in costs that allow the company to avoid unpredictability in the market. Due to this, Royal Gold has actually been increasing its dividend for 15 consecutive years.
Royal Gold’s business strategy involves focusing on gold, sticking to the tried-and-true business model, valuing growth and diversification, margin enhancement, and financial flexibility. The company explains that its “fixed costs, diversified portfolio, and well-capitalized approach to precious metals investments are designed to provide shareholder value.”
Golden Star Resources, Ltd.
Golden Star Resources, based in Canada, was incorporated in 1992 and has established successful operations in Ghana. It has a focus on the environment, healthy and safety, and community. This year, its sales have skyrocketed about 256%! Golden Star Resources also has an expected earnings growth of approximately 104%!
The company’s two mines in Ghana are about to go through a major development stage in order to increase operating margins and cash flow. The mines will be high-grade, low-cost underground mines that will work in conjunction with existing pit operations. Production has already commenced on one mine, and the next mine’s production will begin in 2017.
These fully funded, on-track projects are expected to yield an impressive 180,000 to 205,000 ounces of gold with a cost of $815-$925 per ounce. With this huge renovation going on, it’s the perfect time for investors to buy shares in Golden Star Resources!
Sandstorm Gold Ltd.
Sandstorm Gold isn’t necessarily a gold mining company, but that doesn’t make it any less lucrative! Instead, it is a gold streaming and royalty company. This means that Sandstorm “provides upfront financing to gold mining companies that are looking for capital and in return, receives the right to a percentage of the gold produced from a mine, for the life of the mine.” Sandstorm now owns a total of 131 streams of royalties, making its portfolio extremely impressive to investors.
So far this year, Sandstorm’s stock has grown 70%. For the full year, the company has an estimated 115% earnings growth. Investing in Sandstorm, rather than an actual mining company, allows investors to benefit from rising gold prices and gold production. The investors then have leveraged upside without the downside from cost overruns they could run into with a gold miner.
Clearly, although Sandstorm isn’t the typical gold mining company, it has a lot to offer!
Now that you’ve read through our list of gold stocks, you might be overwhelmed with all the information! Checking out stock comparisons is a good way to see exactly which companies are doing the best right now, but all 10 on our list are great choices. Whether they’re more focused on innovation or the environment, they’ve all been successful and are projected to have continued success.
You could also consider the differences between companies that mine gold and companies that stream gold. There are pros and cons to both options, but both produce profit! You may also want to think about whether you’d like to invest in a company centered in the United States, or if you’re comfortable investing in businesses based overseas.
No matter which stock or stocks you choose to buy, you can rest easily knowing that we provided you with investment opportunities that will yield a profit.