Best Gold Stocks in 2024 – A Comprehensive Overview

Gold has been a popular investment asset for ages, attracting both ardent supporters and critics. Although people have different opinions on its merits, it’s widely recognized that gold plays a distinct role in financial markets to preserve value.

Despite the ongoing debate surrounding gold's effectiveness as an inflation hedge, gold stocks are valuable assets for diversified investment portfolios. Investing in these stocks offers individual investors an accessible and cost-efficient avenue to take part in the gold market, especially when compared to owning physical gold, which can be complex and costly.

To assist investors wishing to include gold in their portfolios, we've compiled a list of top-performing gold stocks with strong fundamentals and favorable valuations.

This resource serves as an invaluable guide for those seeking exposure to the potential benefits of incorporating gold into their investment strategies.

>> Consider eToro to Invest in Gold >>

5 Best Gold Stocks of 2024

Torex Gold Resources Inc (TXG.TO)

Torex Gold is a Canadian firm that primarily operates in Mexico. Its shares are traded on the Toronto Stock Exchange and the over-the-counter market (OTC) in the U.S. under the symbol TORXF.

Over the past ten years, its stock has experienced significant fluctuations, ranging from approximately $8 to as high as $35. Currently, it sits at around $18, positioning it in the middle of this range.

Torex boasts the highest estimated five-year EPS growth among all stocks listed here. Although its earnings can be inconsistent, there has been an overall upward trend in EPS since 2018. Sales have shown consistent growth since 2016 (even accounting for potential drops of up to 10% in any given year).

With a forward P/E ratio of 19.5, Torex's stock valuation aligns with its position within this trading range. Over the past five years, P/E values have fluctuated between three and well above 100. Thanks to a strong solvency ratio showing ample cash flow generation compared to debt obligations,

Torex has refrained from increasing its outstanding shares over recent years, a favorable move considering many gold industry companies resort to share issuance for cash purposes which dilutes existing shareholders' ownership stake.

Dundee Precious Metals Inc. (DPM.TO)

Dundee Precious Metals is a mining company based in Toronto, Canada. It’s listed on the Toronto Stock Exchange, and its shares are also traded over-the-counter in the United States under the symbol DPMLF.

On the list of companies, DPM has one of the highest estimated EPS growth rates, second only to Torex. Sales have shown a consistent increase every year since 2016, with a slight dip in 2022. As is typical for gold miners, earnings can be volatile, fluctuating between positive and negative values. Dundee Precious Metals has achieved three consecutive years of positive EPS.

Between 2018 and 2020, the stock exhibited an upward trend but experienced a decline throughout much of 2021 and early 2022. However, it has been showing signs of recovery and rallying in 2023.

Dundee Precious Metals offers a dividend yield of approximately 2.3% and has consistently raised its dividend yearly since 2020.

The forward price-to-earnings ratio (P/E) for DPM stands at around 10.0, which falls towards the lower end when compared to its five-year range, where P/E values have ranged between four and fifty (historically indicating that buying above a P/E value of forty may not be favorable).

The number of outstanding shares issued by Dundee Precious Metals has increased over recent years, which may not be ideal unless there’s steady or increasing growth in EPS (Earnings Per Share).

AngloGold Ashanti Limited (AU)

AngloGold Ashanti, headquartered in Johannesburg, South Africa, operates gold mines across Africa, Australia, and the Americas.

While AngloGold's projected earnings are more conservative than those mentioned earlier, it boasts a stronger track record of increasing EPS. Since 2015, the company has consistently reported positive EPS. Sales have been on an upward trajectory since 2018, with a slight dip in 2021 compared to 2020.

Over the past ten years, AU's share price has remained relatively stable within a certain range. However, it stands out among other gold stocks as one of the few currently trading above its 200-day moving average. After experiencing significant growth towards the end of 2022, the stock has retraced somewhat in 2023.

Investors can expect a dividend yield of approximately 2.4% from AngloGold. However, the actual dividend amount can vary significantly from year to year.

Currently priced at a moderate P/E ratio of 28.7, the stock's historical P/E values have fluctuated between six and well over four hundred over the past five years.

DRDGold Limited (DRD)

DRDGold, a South African company, specializes in the extraction and processing of gold from two properties in South Africa. Over the past few years, the company has consistently increased its sales with only minor setbacks. The earnings per share (EPS) have shown positive growth over the last four years, although they were slightly lower in 2022 compared to 2021.

Between mid-2019 and mid-2020, DRDGold experienced an impressive rally of nearly 900%. However, it has since retraced from those highs. The company offers a dividend yield of approximately 3.0%, although this amount varies annually.

With a current price-to-earnings (P/E) ratio of 11.2, DRDGold is experiencing one of its lowest readings in five years. This suggests that it may be undervalued compared to previous periods. Overall, DRDGold's track record reflects steady growth and resilience within the gold industry in South Africa.

Royal Gold, Inc. (RGLD)

Royal Gold, a Denver-based gold streamer, operates by purchasing metal through contracts from miners instead of mining gold itself. Similar to FNV, another gold streamer mentioned in the list, Royal Gold's share price has shown consistent growth. While it holds the lowest expected annual forward earnings estimate on the list, it has proven to be a reliable performer for over ten years.

Over the past nine years, sales have experienced steady growth, and EPS has increased since 2015, except for a negative EPS in 2018.

From mid-2020 till now, Royal Gold's stock price has remained within a range of $84.54 to $147.70 without significant movement. It sits around the midpoint of this range.

With a dividend yield of 1.3%, RGLD pays regular dividends that have increased yearly since 2016. The stock is currently trading at a P/E ratio of 32.7, which is considered fair value. However, its lowest P/E ratio over the past five years was recorded at 20. However, P/E ratios can easily exceed 50 for this stock.

Best Gold Stocks – Buyer’s Guide

What Are Gold Stocks?

Publicly traded companies that engage in the extraction, processing, financing, and trading of gold are known as gold stocks. Among the top-performing gold stocks to buy listed above, there’s a focus on either gold mining or gold streaming.

Gold mining involves extracting ore from the earth and transforming it into valuable gold bullion. Gold streaming entails providing upfront financial support to miners for future discounted purchases of finished gold bullion.

While the share prices of these companies don’t directly mirror fluctuations in daily commodity market prices for gold, their revenues are influenced by changes in those prices. Investors who choose to invest in these stocks aim to benefit from shifts in the price of gold without actually owning or storing physical quantities themselves.

Risks of Gold Stocks

Investments in gold can be negatively impacted by a strong U.S. dollar due to their tendency to have an inverse correlation with each other
Because gold is a volatile asset, the prices of gold and the profitability of gold companies can fluctuate
Investing in gold mining companies can be risky due to their operations in politically unstable nations

Advantages of Gold Stocks

Investing in gold stocks offer an opportunity to engage in the fluctuations of gold prices without the need to own or handle physical gold.

The volatility of gold-stock prices is lower than the actual price of gold, providing a relatively stable investment choice. These stocks can act as a potential safeguard against inflation, further increasing their attractiveness for investors seeking ways to protect their portfolios during rising prices.

How to Buy Gold Stocks

Investors can gain gold stocks as any other stock for their investment portfolio.

To achieve this, research gold companies and determine the amount of money one intends to invest in gold stocks. After completing the due diligence process, log into your brokerage account.

Within your brokerage account, select the desired stock you wish to purchase, specify the price at which you intend to buy it, and show how many shares you would like to possess. Once these factors have been decided upon, proceed with purchasing the stock. It’ll then become a part of your existing portfolio alongside other investments.

It’s always advisable to consult with a financial advisor before making final investment decisions. This holds true for many investments, including gold stocks.

Which Is Better: Owning Gold or Gold Stocks?

The decision between purchasing physical gold or investing in gold stocks ultimately depends on your specific objectives and needs.

If you have the storage space and desire a tangible asset, owning physical gold may be the more suitable option. However, if your primary goal is to capitalize on fluctuations in gold prices, then investing in gold stocks might be a better choice.

Physical gold and gold stocks come with their own set of pros and cons. It’s advised to seek guidance from a financial advisor before making any financial commitments.

>> Invest in Gold Stocks With eToro >>

Top 3 Gold Investment Companies

Goldco – Best Gold IRA Company Overall

Goldco is a privately held company based in California operating in the precious metals industry for over ten years. Their expertise lies in gold IRA and asset protection services. They assist individuals with setting up new gold IRAs or transferring existing ones, all while guiding tax-advantaged retirement plans.

Although Goldco itself doesn’t impose fees, clients should know associated costs such as custodian fees, setup and annual maintenance fees, and storage fees ranging between $150 to $200 per year. To open a gold IRA with Goldco, a minimum initial investment of $25,000 is required, and customers will need to go through the process of opening an account with the help of a representative.

Positive customer reviews have given Goldco an impressive rating of 4.8 out of 5 stars for their effective communication, efficiency in handling transactions, extensive knowledge of the subject at hand, and excellent customer service.

It should be noted that there have been some complaints regarding elevated markups on products offered by the company and instances where customers felt misled by certain information, resulting in delayed payouts.

For any inquiries or support needs Monday through Friday between 7 a.m. to 4 p.m., Pacific Standard Time (PST), customers can reach out to Goldco via phone or engage with their website's chatbot feature.

American Hartford Gold - Best Gold IRA Company for Small Investments

American Hartford Gold stands out as the preferred choice for those aiming to secure their financial future through gold IRAs, especially for individuals with limited investment budgets. This company tailors solutions to meet the specific needs of small investors, making it ideal for those seeking to diversify their retirement portfolios with precious metals.

With a commitment to transparency and competitive fees, American Hartford Gold ensures the costs associated with establishing and maintaining a gold IRA remain reasonable. This empowers even modest investors to safeguard their wealth against economic uncertainties.

Their steadfast dedication to customer service and deep expertise in the precious metals market further cement their reputation as the top choice for gold IRAs catering to small investments.

Augusta Precious Metals - Best Gold IRA Company for Customer Support

Established in 2012 by CEO Isaac Nuriani, Augusta Precious Metals specializes in providing silver and gold coins and bars for IRA investments. They ensure their metals, except the American Gold Eagle coin, possess a purity level of 99%.

The pricing structure is conveniently accessible online and is determined by adding a margin to the base price. This margin may fluctuate depending on supply, demand, and prevailing economic conditions. Augusta actively encourages potential investors to compare their prices with those other dealers offer. They extend a generous seven-day period when new investors can reverse transactions if necessary.

Best Gold Stocks – FAQs

Are Gold Stocks a Good Investment?

Like any other investment, investing in gold stocks has pros and cons. It’s advisable for potential investors to thoroughly research and seek guidance from a financial advisor before deciding.

When Should You Buy Gold Stocks?

The primary aim of investing in stocks is to acquire them at a low price and sell them at a higher price. Accurately predicting the market's timing can be pretty challenging. It’s crucial to research, seek guidance from a financial advisor, and determine the opportune moment for buying gold stocks that suit your circumstances.

What Is the Best Gold Stock to Buy?

Determining the ideal gold stock relies on one's unique investment objectives. It’s crucial for each investor to evaluate their investment strategy and tolerance for risk to discern which gold stock suits them best.

Disclaimer: The above is a sponsored post, the views expressed are those of the sponsor/author and do not represent the stand and views of Outlook Editorial.