London, UK — Gold stocks work like other stocks; fundamentally, you’re investing in companies that own gold or mine gold on your behalf. These are the shares of publicly traded companies that focus on gold. The gold industry consists of different types of entities, including gold mining, gold focus ETFs, and Gold streaming and royalty companies. In general, gold stocks are more appealing to growth investors than to income investors. Gold stocks usually rise and fall with the price of gold, but there are well-managed mining companies that are profitable even when the price of gold is not increasing. A rise in the price of gold is often intensified in gold-stock prices. There are various ways to buy gold bullion, such as through an online dealer, e.g., APMEX or JM Bullion, or even a local dealer or collector. A pawn shop may also sell gold. But Investors mostly buy gold stock instead of physical metal to hedge against risks like rising inflation, geopolitical events, and economic downturns. Gold prices are volatile in nature, but it is the safest way of investment. There are a lot of advantages of buying gold stocks instead of physical metals. Gold companies can eventually generate higher total returns than an investment in physical gold. In this way, these companies are able to expand their production and reduce costs. These factors can enable gold mining companies to perform better than the price of gold. Generally, not all gold-stock performs better than investment in physical gold, so you should be very careful when choosing a gold stock. According to Lucas Hill, stocks analyst at Blue Royal Investments, there are various best gold stock companies that are focusing on gold mining, holding shares of renowned gold mining, and leading gold-focused royalty and streaming. Of all of these big companies, some big names are Newmont, Barrick Gold, Kirkland Lake Gold, Gold Fields Limited, Hecla Mining Company, Rio Tinto Group, etc. These companies perform very well in the stock markets and give high returns on their investments. Here we are going to discuss the five most popular gold stocks to make an investment in 2022.
1-Barrick Gold Corporation
A Canada-based company named Barrick Gold Corporation is a mining company. It produces precious metals such as gold, silver, and copper. Peter Munk founded it in 1983. Its headquarter is in Toronto, Ontario, Canada. It performs mining operations in 13 different sites, such as Argentina, Canada, Chile, Côte d’Ivoire, the Democratic Republic of the Congo, the Dominican Republic, Mali, Papua New Guinea, Saudi Arabia, Tanzania, the United States, and Zambia. Eighteen thousand four hundred twenty-one employees are working with this company. Barrick Gold had 71 million ounces of proven and probable gold reserves in 2019. The company has generated US$ 11.88 billion in total revenue. It has US$ 36.61 billion in total market capitalization. It has 1,779,356,248 shares outstanding. Currently, its stock’s selling price is US$ 20.60 per share. Barrick Gold Corporation has the ability to produce more than 500,000 ounces of gold per year. According to predictors, it might be a good choice to invest in gold stock because of its increasing financial flexibility and strength to pay a growing dividend.
Franco-Nevada Corporation is a public company that deals in oil, gas, and Mining. It’s a Canada-based, gold-focused royalty and streaming company. It is traded on the Toronto Stock Exchange and New York Stock Exchange. The company’s total operating income is US$861 million. Its total assets are worth US$ 6.210 billion.
Franco-Nevada corporation has generated US$ 1.69 billion in total revenue. It has US$ 34.69billion in total market capitalization. It has 191,481,722 number outstanding shares. Currently, its stock’s selling price is US$ 181.16 per share. The company’s total equity is US$6.025 billion. Franco-Nevada’s streaming and royalty contracts made it able to generate lots of cash by selling the physical commodities it receives. That might be a good reason to invest in a company because that cash flow enables it to invest in new deals and pay a dividend at a high yield.
3. VanEck Vectors Gold Miners ETF
The VanEck Vectors Gold Miners ETF widely invests in the gold and silver miner stock world. It holds the stocks of large gold mining companies. It’s one of the largest gold ETFs in the world, with about $15.6 billion worth of assets as of early 2022. Newmont Goldcorp (NYSE: NEM), Barrick Gold Corporation (NYSE: GOLD), Franco-Nevada Corporation (NYSE: FNV), Wheaton Precious Metals (NYSE: WPM), and Newcrest Mining (ASX: NCM) are VandEck Vector’s top five holding by value. The company has generated US$ 11.88 billion in total revenue. Currently, its selling price is US$ 32.51. The VanEck Vectors Gold Miners ETF might be appropriate for bullish investors on gold and fear of inflation or a future financial crisis.
Newmont is the world’s biggest and oldest mining company, based in Greenwood Village, Colorado, United States. There are approximately 31,600 employees and contractors working with Newmont worldwide. The biggest gold mining company has generated US$ 12.37 billion in total revenue. It has a US$ 54.53 billion total market capitalization. Newmont has 793,651,139 outstanding shares. Currently, its stock’s selling price is US$ 68.72 per share. According to analysts, Newmont’s stock provides good qualities from a pricing and dividend perspective. It might be a well-rounded asset and a “best-in-class” investment if you’re seeking to hedge inflation.
5- Sibanye-Stillwater Ltd.
Sibanye-Stillwater is a South Africa-based multinational company. It produces precious metals such as platinum, rhodium, and gold. It develops and extracts mineral properties. 84,775 employees are working with this company. The company has generated US$ 11.03 billion in total revenue. It has a US$ 9.14 billion total market capitalization. It has 2,829,789,481 shares outstanding. Currently, its stock price is US$ 13.12. Sibanye-Stillwater Ltd. has a 30% stake in a lithium project in Finland. It is the largest primary producer of platinum, the second-largest primary producer of palladium, and ranks third among global gold producers on a gold-equivalent basis. According to experts, it might be a good yield and have the potential to grow more in the future.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find in this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.