Investors often turn to the best gold stocks to buy as a traditional hedge against inflation. Gold has been a timeless symbol of wealth preservation, and has been on a tear this year.
When inflation rises, the value of currencies loses their purchasing power, causing the rise of hard assets like real estate, gold, and other alternative assets. While owning physical gold is an option, investing in gold stocks can offer several advantages, including capital appreciation and dividends. As global economic uncertainty persists in 2024, exploring gold stocks can be a prudent way to diversify your portfolio.
Now, let’s unpack the best gold stocks to buy in 2024!
SPDR Gold Trust (GLD)
While not considered a gold stock, SPDR Gold Trust (NYSEARCA:GLD), is one of the safest and most cost-effective ways to gain exposure to physical gold. It is an Exchange-Traded Fund (ETF) that seeks to track the spot price of physical gold bullion.
GLD offers a convenient way to invest in gold without the hassle of storing and insuring physical gold. Its close correlation to gold makes it a strong choice for investors seeking direct exposure to this hard asset. The ETF has outperformed the S&P 500 so far in 2024, and the long term growth tailwinds in commodities remain strong. It currently holds 26.7 million ounces of gold in its covers, or equivalent to 831 tons. Additionally, the expense ratio for the ETF is 0.40%. SPDR Gold Trust continues to see large inflows in 2024, further signaling that investors are taking steps to protect their portfolios from inflation.
Harmony Gold Mining Company (HMY)
Harmony Gold Mining Company (NYSE:HMY) is a South African-based gold producer with additional projects in Australia and Papua New Guinea. It stands as the largest gold mining company in South Africa, with a large portfolio of mines across many different regions.
Harmony Gold’s robust operational performance and strategic positioning make it an attractive investment opportunity in 2024. The company has demonstrated resilience in navigating tougher macroeconomic conditions compared to many of its counterparts. It has seen a rapid acceleration in revenue growth, with FCF up substantially.
With geopolitical tensions, inflationary pressures and uncertainty clouding the markets, gold serves as a reliable hedge against this volatility. The stock has returned 84% over the last 3 years, compared to GLD’s 27%. This offers the potential for significant outperformance as the spot Gold price continues to rise. If you’re a more risk-tolerant investor, HMY stock is certainly one of the best gold stocks to buy now.
Alamos Gold (AGI)
Alamos Gold (NYSE:AGI) is a Canadian-based intermediate gold producer with operations in Canada and Mexico. The company is known for its low-cost production profile and its commitment to sustainable mining practices.
Alamos Gold offers exposure to gold production with a focus on operational efficiency for potential growth. Their operations include producing mines in Canada and Mexico, as well as development projects in Turkey and the United States. This geographical diversification mitigates risks associated with political instability and regulatory changes, enhancing the company’s resilience.
Furthermore, the company has consistently delivered strong production results while maintaining low operating costs. In FY23, revenue increased 25% YOY to a record $ 1 billion. EPS skyrocketed nearly 500% YOY to $0.53 per share while generating $124 million in FCF from operations. Results came in at the high end of estimates, with production up 15% YOY to a record 529,300 ounces. The company is currently in expansion mode, making it one of the top gold stocks to buy in 2024.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.