Stock themes

Best gold stocks

Gold stocks are shares in the companies that mine gold and silver — not the metal itself. Many investors use gold as a hedge against turmoil and inflation, and the miners tend to amplify the move: when the gold price rises, their profit can rise further, because their costs are largely fixed. It works both ways. Below, our model ranks every US-listed gold and silver stock by score and momentum.

18
Stocks
59
Average momentum
6
Rated strong
Stock Momentum Score To target
SSR Mining IncStrong 95 256 +11%
Newmont Goldcorp CorpStrong 91 247 +3%
AngloGold Ashanti LimitedStrong 83 241 +4%
Aris Mining CorporationStrong 80 233 +84%
Barrick Mining CorporationStrong 61 230 +16%
Kinross Gold CorporationStrong 55 223 +18%
Royal Gold, IncAverage 74 199 +15%
Pan American Silver CorpAverage 42 193 +28%
Jaguar Mining IncAverage 74 192 no target
Coeur Mining, IncAverage 56 178 +11%
Silvercorp Metals IncAverage 68 166 +18%
First Majestic Silver CorpAverage 37 159 +18%
Endeavour Silver CorpAverage 57 152 +38%
Cabral Gold IncWeak 98 103 no target
Guanajuato Silver Company LtdWeak 9 83 no target
Maple Gold Mines LtdWeak 47 55 -88%
Hycroft Mining Holding CorporationWeak 9 50 +8%
Paramount Gold Nevada CorpWeak 20 43 +184%

Three kinds of gold company

The large producersNewmont, Barrick and AngloGold Ashanti — run mines in several countries and have real accounts to judge. The smaller ones, such as Kinross and SSR Mining, have fewer mines, so a single operational problem counts for more. The developers like Aris Mining are earlier still. Silver miners are in the theme too, and silver swings more than gold because it is also an industrial metal.

What moves gold stocks?

The gold price, amplified. A miner has broadly fixed costs per ounce. When gold rises, almost the whole increase falls to the bottom line — and when it falls, the profit disappears just as fast. That is why gold stocks typically swing more than gold itself.

The real interest rate. Gold pays no interest. When rates after inflation rise, holding something that does not yield becomes more expensive, and gold gets less attractive. When real rates fall, the opposite.

Cost per ounce. Energy, labour and equipment decide what is left. Two companies at the same gold price can earn very different amounts.

Country risk. Mines sit where the gold is, not where it is easiest. Tax changes and permits can hit one company hard without warning.

Questions and answers

Do gold stocks protect against a crash?

Gold has historically held up better than shares in several crises, but there is no guarantee — and gold stocks are still shares, which can fall in a broad sell-off. Many people use them as a smaller part of a portfolio to spread risk, not as the only defence.

What is the difference between gold stocks and physical gold?

Physical gold tracks the gold price. A mining company can swing further in both directions, because fixed costs amplify the change in earnings. In return, a miner can pay a dividend and grow, which a gold bar cannot.

Why do gold stocks fall when interest rates rise?

Gold pays no interest. When you can earn a safe return elsewhere, holding something that yields nothing costs more. That is why the real interest rate — the rate after inflation — has historically mattered most for the gold price.

Do gold stocks pay a dividend?

Some do, but the dividend is typically smaller than in, say, banking, because the companies reinvest in mining. Check the individual stock page for the dividend and payout ratio.

← All themes