Gold has always been a safe place for investors to put their money. The price of gold doesn’t have a strong correlation to the stock market and isn’t influenced by corporate earnings. Instead, it’s a way for investors to hedge their portfolios against a market downturn.
While it’s possible to purchase gold bars and store them in your basement, most people stick to owning gold stocks or gold ETFs instead. You can even invest in companies involved in mining gold.
In this article, we will look into five of the best gold stocks to buy in 2025.
Pro Tip: While these are our favorite gold stocks based on certain fundamentals we watch, you should also use our free stock screener to find the best stocks that fit into your overall investment strategy.
Best Gold Stocks to Buy in 2025
If you’re looking for some of the best stocks to invest in for 2025, consider one of these five gold companies.
Newmont Corp (NEM)
Even though Newmont Corp. has watched its stock price decline by more than 11% over the past month, it still tops our list of the best gold stocks. This is because it’s the world’s largest gold miner based on total production, and it has significant upside potential if you choose to buy the dip.
One technical indicator that we’ve been monitoring is Newmont’s Relative Strength Index (RSI). Anything below 30 indicates that a stock is likely oversold. Newmont is currently just above 29. Additionally, analysts covering Newmont have increased their forecasted EPS estimates by nearly 3.5%. This could indicate a near term price swing is possible.
With a current stock price of $45.49 ( as of October 31, 2024), average analyst price targets show a potential 28% upside from here. Add that to the 2.45% dividend yield, and there’s a lot to love about Newmont.
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Barrick Gold Corp (GOLD)
If you’re looking to add a value stock within the precious metals sector, then you’ll want to consider Barrick Gold. They’re the third largest gold mining company by market capitalization. With a forward P/E ratio of 15.7, they’re trading at a value compared to many other gold companies. Plus, their PEG ratio being below one shows that they’re inexpensive when factoring in growth.
Analysts forecast revenue growth to be 14.71% next year, a key indicator for us. Plus, with its 1.99% dividend yield and 14% upside potential in its stock price, Barrick Gold is one of the better gold stocks to consider.
Harmony Gold Mining Co. Ltd. (HMY)
Harmony Gold Mining is currently trading around analyst estimates, which might make people question whether now would be a good time to invest in them. However, the company has a lot more going for it, which leads us to believe there are good things to come.
To start, revenue is expected to grow 46.48% in 2025, and their PEG ratio sits below 1, meaning their stock price is inexpensive compared to earnings growth. With an asset utilization of 8.77%, their profitability is one of the highest of any in the sector.
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New Gold Inc. (NGD)
Each of the companies on the list so far is paying out dividends to their shareholders. However, that’s not the case for New Gold Inc. Even so, there is a lot to love about this smaller gold stock.
They recently released their third-quarter earnings, and there was plenty to like. They reported a 14% increase in gold production over the previous quarter and revenue of $252 million, which was a quarterly record. They also announced a record amount of free cash flow at $57 million.
However, they did offer some caution on gold production, which has led the stock lower post-earnings. One of their production sides, Rainy River, is expected to produce 15,000 ounces less gold next quarter than originally expected. They also expected their consolidated gold productions to be below guidance. However, even with this, analysts expect their revenue to grow by 23.59% in 2025, which provides optimism.
Kinross Gold (KGC)
Kinross Gold is involved in the acquisition, exploration, and development of gold in different areas of the world. With a market cap of over $12 billion, they’re a larger gold company. The company is expected to release its third-quarter earnings report on November 5, where analysts expect quarterly earnings of $0.17, a 41% increase over the same quarter last year. It’s also expected that they’ll announce revenue of $1.19 billion, a 7.7% increase over the same quarter last year.
Looking forward, Kinross Gold has a lot of price momentum, given that it’s trading near its 52-week high. Additionally, it’s expecting revenue growth of 15.78% next year and EPS growth of more than 88%.
With the stock price trading just over $10, analysts think there is a 10% upside from here.
Methodology for Picking The Best Gold Mining Stocks
We chose the gold stocks above because they all have the potential for large price increases over the next 12 months. They have a significant amount of cash flow and are expecting strong revenue growth in 2025.
Types of Gold Stocks
When you’re looking into purchasing gold stocks, there are a few different directions you can take. Below are three different types of gold stocks that we looked at.
Junior Minors
Junior gold miners are smaller, early-stage gold mining companies. They can cover both exploration and development but are usually not involved in production. Junior minors typically have smaller market caps, operate in a single region of the world, and tend to be more sensitive to gold price fluctuations.
Senior Minors
Senior minors are typically larger companies with a higher market cap. They also focus more on the consistent production of gold from each of their mines. Senior minors tend to be a little less risky, and their stock prices move more in correlation to the price of gold.
Gold Streaming Companies
Gold streaming companies are financing firms that provide minors with upfront capital. In exchange for these funds, the mining companies give the gold streaming company the right to purchase part of the company’s gold production.
Gold streaming companies have a lower risk than miners since they aren’t involved in directly mining gold. Plus, they tend to work with several minors, which provides them with some diversification.
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Pros and Cons of Buying Gold Stocks
Pros
- Potential for dividends: When you invest in senior minors and gold streaming companies, you’ll typically have the chance to earn dividends.
- No storage or custodian fees: When you invest in physical gold, you need a place to keep it. This means you’ll need to pay a storage fee. When you invest in gold stocks and ETFs, you won’t have these fees to worry about.
- Liquidity: Buying and selling a gold stock will be much easier than getting rid of physical gold bars.
- Capital Appreciation: When gold prices are on the rise, the profits of gold companies can increase exponentially. This means the appreciation of your investment could be greater than the appreciation of gold itself.
Cons
- Sensitivity to gold prices: Depending on the investment, it can be significantly sensitive to the price of gold.
- Operational risks: The company may experience production issues, political turbulence in the region where mining is taking place or operational accidents that impact profits.
- Underperformance during strong economic times: When the economy is healthy, there is a chance that gold could underperform other sectors.
The Bottom Line
If you’re looking to diversify your investment portfolio, considering gold stocks can be a great choice. Whether you want to hold physical gold or invest in gold stocks and ETFs, this can be a great way to shield your portfolio against some of the risks that occur within other sectors of the market.