The decision to keep cash or gold is a personal preference based on your beliefs about inflation, the economy, and the money supply. According to data from Statista, the average annual return on gold has been 8% since 1971. Meanwhile, the average annual return on cash as measured by interest earned was 4.2%. While gold has outperformed cash over the long term, its price is a lot more volatile.
- As trade and exploration evolve, the gold industry is seeing major advances in extraction methods.
- Finally, we ranked all remaining gold mining companies based on highest 30-day return and excluded any with a negative return during that period.
- Thus, the U.S. market has become a key destination for gold shipments, with bullion banks taking advantage of good pricing trends.
- It has a financial health grade of “A” from Morningstar and a very strong solvency ratio.
- Barrick has a diversified portfolio and a good track record of operating performance.
A reopening at historically high gold prices should improve Barrick’s revenue and earnings performance. The Zacks Consensus Estimate for this Toronto, Canada-based company’s earnings for fiscal 2025 indicates 56.4% year-over-year growth. B has a trailing four-quarter earnings surprise of 6.7%, on average.
Is gold a good investment in 2022?
Agnico Eagle Mines currently sports a Zacks Rank #1 gold mining stocks (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here. The prospects for the Zacks Mining – Gold industry look bright, backed by the 26% growth seen in gold prices in 2024. Barrick complements its top-tier gold mining portfolio with a strong balance sheet.
InvestingPro offers a comprehensive suite of financial models, fair value estimates, and analyst targets to complement your analysis of operational efficiency. Use the robust, advanced stock screener, talk to WarrenAI (your new personal financial analyst), be inspired by some of the world’s top investment portfolios. Beyond the operational and geological aspects, a thorough analysis requires a deep dive into a company’s financial health and the external risks it faces. A company that operates only one or two mines is exposed to significant risk.
As reported by Reuters, this created a unique profit opportunity, leading to nearly 80% growth in Comex gold inventories over the three months following November, 2024. Imports from London, Switzerland, and Asian markets majorly contributed to this influx. Equinox Gold Corp is a growth focused gold producer operating entirely in the Americas, with projects in Canada, the USA, Mexico and Brazil.
FNV has a trailing four-quarter earnings surprise of 5.72%, on average. The company has a long-term estimated earnings growth of 15.6% and currently carries a Zacks Rank of 3. If you have the space to store gold and want to own a tangible asset, physical gold may be the better choice. However, if you’re simply looking to profit from changes in gold prices, gold stocks may be a better option. Buying and selling physical gold will typically involve much higher transaction costs than buying and selling gold stocks.
What to Know About Investing in Gold
Zacks Rank #2 Gold Fields operates as a gold producer with reserves and resources in Chile, South Africa, Ghana, Canada, Australia, and Peru. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Forbes’ expert analysts have pinpointed the 12 superstars poised to ignite returns in 2024.
How to Evaluate Utility Stocks for Your Portfolio
Agnico Eagle Mines has an expected revenue and earnings growth rate of 30.6% and 64.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the last 30 days. Giant investment bankers like JP Morgan and Goldman Sachs have forecasted that gold prices could climb to $4,000 to $5,000 per ounce by 2026, suggesting continued bullish momentum. Before getting into gold investing, consider your timeline and the role you want the gold assets to play alongside your other investments. Franco-Nevada has been successful securing long-term partnerships with leading operators and identifying productive projects.
Agnico Eagle Mines Business Overview
- While gold has outperformed cash over the long term, its price is a lot more volatile.
- The Zacks Consensus Estimate for current-year earnings has improved 1.2% in the last 30 days.
- Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012.
- Gold prices rose 7% in March as investors flocked to safe havens after the collapse of multiple mid-size banks shook markets.
- The investments come as the U.S. mining sector contributes approximately $85 billion to the gross domestic product while employing over 400,000 people.
DRD is involved in provision care and maintenance services; and operation of training center. Gold’s performance as an investment is highly dependent on economic conditions. However, gold’s long-term average annual return from 1971 to 2024 is 8%. Stuffing gold bars under your mattress is one way to invest in gold, but it’s not the most comfortable option. In addition, other investors seeking to benefit from the stock’s outperformance will often purchase it, further bidding its price higher. These are the stocks that had the highest total return over the past 12 months.
The main factor was a $1.1 billion impairment loss in 2023 due to a production halt at its Cobre Panama mine. Additionally, since these seven assets are exchange-traded, they’re easily accessible within most U.S.-based brokerage accounts. Barrick gold could be one of the best options for gold — not some small stock or Costco gold bars. Gold mines are often located in countries that are politically and economically unstable. Political changes can lead to higher taxes, new regulations, or even the outright nationalization of assets.
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Further, only five gold mining firms had positive 30-day returns at the time of our screen. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +23.64% per year.
Dundee Precious Metals Inc (DPM.TO)
Equinox Gold has around seven operating gold mines and a clear plan to increase production by advancing a pipeline of growth projects. In this time of seemingly ample profits, how do you choose top gold stocks for your portfolio? Let’s answer that question below and meet five gold stocks with good potential for 2025 and beyond.
Before investing in gold mining companies, investors should consider a few important benefits and risks. Advantages of these firms may include their potential to be a leveraged play on gold. As the price of gold rises, the share prices of these companies may rise as well—and they may experience even higher returns thanks to their crucial role in producing gold for physical investment. Rising gold prices can also lead to significant capital gains for gold mining firms when their profits increase as well. Another benefit of gold mining firms is their higher liquidity compared to physical gold.
The company’s portfolio includes exposure to gold, silver, oil, gas and NGL. A strong balance sheet is a non-negotiable for a healthy gold mining stock. Look at the company’s debt levels—a high debt load can cripple a company during a downturn in gold prices, as it still has to make its interest payments. The Zacks Consensus Estimate for this Toronto, Canada-based gold-focused royalty and stream company’s earnings for fiscal 2025 has moved up 8% over the past 90 days. FNV has a trailing four-quarter earnings surprise of 4.2%, on average. Overall, with a sharp focus on boosting efficiency, advancing key projects, and maintaining financial discipline, the company stands steady for success in the coming years.
Remember, gold stocks can add both value and stability to your portfolio, but like all investments, they come with risks that should be carefully considered. Gold is one of the most famous of all safe-haven assets, traditionally included in portfolios as a hedge against inflation and market turbulence. Headquartered in Denver, CO, Newmont has a trailing four-quarter earnings surprise of 32.8%, on average. The Zacks Consensus Estimate for NEM’s 2025 earnings has moved up 15% over the past 60 days and indicates year-over-year growth of 52%.