3 Best Gold Mining Stocks to Watch in 2024
What are the best gold mining stocks to watch right now? How do you invest in the top gold stocks with low commissions and what are the long term forecasts of gold mining shares? We answer these questions and more in this ‘Best Gold Mining Stocks to Watch’ article.
Table of Contents
3 Best Gold Stocks
Looking for a list of gold and silver mining stocks to consider investing in? Then start with some of the biggest players in the industry that are well diversified. The metals sector can be volatile so it’s important to choose any investment wisely.
Below is a gold stocks list of the top three biggest gold stocks listed on the world’s biggest stock exchanges:
- Newmont Corporation (NEM) – Largest Gold Mining Company in the World
- Barrick Gold (ABX) – Gold & Copper Mining Company with 16 Global Sites
- Freeport-McMoRan (FCX) - Owner of the World’s Largest & Most Profitable Gold Mine
The gold mining stocks listed above represent some of the biggest in the world. Junior gold mining stocks are not included in the list as they can be extremely volatile. To gain exposure to this sector you could focus on junior gold mining ETFs (exchange traded funds).
Gold Mining Stocks Forecast & Research
In this section, we go through the best gold mining stocks to watch right now in more detail. It’s always good to do as much research as possible before you start investing so you know the potential risks.
This list serves as a great starting point to build upon to see if any of the best gold mining stocks are suitable for your own portfolio and risk tolerance.
You can also use the Technical Insight Lookup indicator tool in the Premium Analytics section to provide you with actionable trading ideas on these stocks once you open a trading account.
Research is important as the ‘best’ stock is relative (every investor is different) and it can only be truly known after the event. The key is to try and put the probabilities in your favour but to use a strong risk management process to manage any losses.
1. Newmont Corporation – Largest Gold Mining Company in the World
Newmont Corporation merged with Canada’s Goldcorp in 2019 creating the world’s largest gold mining company with nearly $12 billion in yearly revenue. It is the only company in the US stock market's S&P 500 index which is an index of the largest 500 stocks by market cap listed on the New York Stock Exchange.
While the company is based in Colorado, it operates gold mines based in Colorado, Nevada, Quebec, Ontario, Argentina, Peru, Australia and many other countries. The company also mines other metals such as silver, copper, lead and zinc.
Newmont Mining has been trying to expand its foothold in the gold mining sector through its bid for Newcrest Mining early in 2023. Its USD 17.1 billion bid was turned down but a new offer is likely according to Newmont's CEO Tom Palmer. As copper and silver are also typically mined with gold it could prove to be a huge boost for Newmont if their acquisition is successful.
Copper prices are due to rise as demand exceeds supply. However, Newmont Mining's stock price has fallen nearly 50% after reaching a record high of USD 86.37 in April 2022. If the price can regain ground above USD 43.00 it may confirm that the bulls are back in the market.
2. Barrick Gold – Gold & Copper Mining Company with 16 Global Sites
Barrick Gold was the world’s largest gold mining company for many years until the Newmont Mining and Goldcorp merger. The company is now the world’s second-largest gold mining company producing between four and five million ounces of gold last year.
There are 16 operating sites in Barrick Gold’s portfolio which are based all around the world. Barrick Gold doesn’t only produce gold but it also produces. The company was brought to the forefront last year when legendary investor Warren Buffett announced it purchased $562 million of the gold stock during the pandemic.
Barrick Gold stock trades on the New York Stock Exchange and the Toronto Stock Exchange. Since the middle of 2020, the stock price has been in a long decline. Gold lost its shine as loose monetary policy from central banks helped to lift the stock market to record highs. However, the share price was rising for several years before the pandemic closed down some of its mines.
The stock price has not yet recovered to its price level before the pandemic but did enjoy a rally late in 2023. Last year, the mining company announced a share buyback plan which could help to boost the share price. However, the price would need to snap out of the downtrend and break above USD 19.00 to turn bullish from a technical analysis perspective.
3. Freeport-McMoRan - Owner of the World’s Largest & Most Profitable Gold Mine
Freeport-McMoRan is the owner of the Grasberg Mine in Papua, Indonesia. This is the largest and most profitable gold mine in the world. However, the mining company is also one of the largest producers of copper and molybdenum (used to create high-strength steel alloys).
Most of the recent revenue from the company has been from the sale of copper. This is in line with most mining companies. China has been a big purchaser of copper in recent years as it builds its economy. It’s one reason the company’s share price has remained resilient compared to other gold stocks.
During the rally in copper prices from 2020 to 2022, Freeport's share price also rallied higher. With the demand for copper expected to outstrip supply by 2041, there could be another rally in copper prices. However, Freeport's share price has stagnated somewhat and has been range-based over the past several months.
How to Invest in Gold Stocks
To start investing you first need to open a live trading account or a free demo trading account. Once this has been done, you can follow the step-by-step process outlined below to invest in the best gold mining stocks of your choice.
- Login to the Dashboard from the Admirals website. From here, you can manage all of your trading and investing accounts, download different trading platforms, and access the Admirals Wallet and premium analytical tools.
- Click on the Trade icon next to one of your accounts. This will automatically open the MetaTrader 5 web trader platform so you can start investing without needing to download a desktop platform.
- Type in the stock you wish to invest in. Admirals offers over 3,000 global stocks and ETFs to invest in. For US stocks the commission is $0.02 per share with a minimum commission of $1.
- Click on New Order to open a trading ticket. Input your entry, and stop-loss, and take profit price levels and quantity of shares.
Conclusion
The price of gold ended 2023 13% higher and in the first quarter of 2024, gold reached a new record high. The increase in demand for gold, may help the bottom line of some gold mining stocks. While the correlation is not perfect, gold miners can sell what they produce at a higher price, potentially leaving more profit in the bottom line. However, the gold mining business is costly and many expenses can eat into the bottom line.
After doing thorough research on investing in the best gold stocks it is important to invest with a regulated broker that has competitive commissions. Admirals is authorised and regulated by the FCA, CySEC, ASIC and others. Invest in stocks and ETFs from 15 of the largest stock exchanges in the world from just 0.02 USD per share on US stocks and 0.1% commission on UK stocks.
Continue Reading:
- 4 Best Silver Mining Stocks
- 5 Best Zinc Stocks
- How to Invest in Gold
- Best Shares to Buy
- Top 10 UK Shares
- Best Stocks for Dividends
FAQs on Gold Mining Stocks
Are gold stocks a good idea?
Gold stocks can hold a place in investors' portfolios subject to proper risk management. Gold stocks are very volatile and may not be suitable for all investors. It's also important to note that the price of gold doesn't always correlate to the share price of a gold mining stock. This is because gold miners have various expenses that can eat into any profits from the sale of gold.
What gold stock is the best to buy?
The three largest gold stocks include Newmont Corporation, Freeport Mc-MoRan and Barrick Gold. The best investment is subject to the individual investor's risk appetite.
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