S&P 500   3,768.25
DOW   30,814.26
QQQ   311.86
S&P 500   3,768.25
DOW   30,814.26
QQQ   311.86
S&P 500   3,768.25
DOW   30,814.26
QQQ   311.86
S&P 500   3,768.25
DOW   30,814.26
QQQ   311.86
Log in

Gold Stocks

Gold stocks are publicly-traded companies involved in the exploration, mining and processing of the mineral gold. What is a gold stock?

CompanyPE RatioMarket CapCurrent PricePrice ChangeVolumeAverage VolumeIndicator(s)
Nestlé logo
NSRGY
Nestlé
25.50$326.37 billion$113.22+0.5%1.77 million664,950Analyst Downgrade
High Trading Volume
The Coca-Cola logo
KO
The Coca-Cola
25.36$215.56 billion$48.70-1.1%24.37 million28.29 million
China Construction Bank logo
CICHY
China Construction Bank
5.65$198.51 billion$15.88+0.6%558,600192,190High Trading Volume
CIHKY
China Merchants Bank
15.17$195.91 billion$38.84+2.6%14,20032,650Analyst Upgrade
HDFC Bank logo
HDB
HDFC Bank
35.32$138.29 billion$74.88-1.0%1.72 million1.16 million
The Goldman Sachs Group logo
GS
The Goldman Sachs Group
12.68$104.23 billion$301.01-2.2%3.86 million3.79 millionUpcoming Earnings
Rio Tinto Group logo
RIO
Rio Tinto Group
12.71$100.43 billion$80.47-5.2%2.04 million2.38 million
Diageo logo
DEO
Diageo
28.67$93.65 billion$157.69-1.6%375,100448,200Analyst Report
Vale logo
VALE
Vale
67.85$90.46 billion$17.64-6.9%33.74 million37.78 millionDecrease in Short Interest
Gilead Sciences logo
GILD
Gilead Sciences
65.29$77.14 billion$63.33+1.5%9.36 million10.53 millionDecrease in Short Interest
BHP Group logo
BBL
BHP Group
16.10$61.20 billion$57.64-4.8%1.20 million1.35 million
Fortescue Metals Group logo
FSUGY
Fortescue Metals Group
12.46$59.23 billion$38.14-2.3%23,90045,030Increase in Short Interest
Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel logo
NILSY
Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel
N/A$55.43 billion$35.03-3.2%61,100123,170
Southern Copper logo
SCCO
Southern Copper
45.47$53.43 billion$69.11-2.7%643,000948,870
ICICI Bank logo
IBN
ICICI Bank
29.35$52.68 billion$14.97-1.1%5.94 million8.71 millionUpcoming Earnings
Stock Split
Increase in Short Interest
Newmont logo
NEM
Newmont
19.45$49.86 billion$61.86-2.3%5.58 million6.62 millionAnalyst Report
Insider Selling
Ambev logo
ABEV
Ambev
25.42$47.97 billion$3.05-4.1%22.10 million31.00 million
Freeport-McMoRan logo
FCX
Freeport-McMoRan
N/A$44.40 billion$30.35-5.1%19.93 million26.04 millionAnalyst Report
Decrease in Short Interest
Analyst Revision
Barrick Gold logo
GOLD
Barrick Gold
13.61$41.96 billion$23.14-2.3%16.31 million24.00 millionAnalyst Report
Decrease in Short Interest
Analyst Revision
The Kraft Heinz logo
KHC
The Kraft Heinz
N/A$39.14 billion$31.99-0.3%6.98 million7.58 million
Cadence Design Systems logo
CDNS
Cadence Design Systems
34.97$37.56 billion$134.64-0.6%1.13 million1.76 million
General Mills logo
GIS
General Mills
14.42$33.87 billion$56.24+0.9%8.58 million5.99 millionAnalyst Report
Wayfair logo
W
Wayfair
N/A$29.83 billion$300.00-9.1%4.14 million2.87 millionInsider Selling
Kerry Group logo
KRYAY
Kerry Group
31.69$24.70 billion$139.75-0.7%4,0004,360Analyst Revision
Heavy News Reporting
Franco-Nevada logo
FNV
Franco-Nevada
87.19$23.97 billion$121.20-2.0%491,700578,840Analyst Report
Analyst Revision
Imperial Brands logo
IMBBY
Imperial Brands
6.87$20.82 billion$22.26-1.0%485,800309,680
Wheaton Precious Metals logo
WPM
Wheaton Precious Metals
50.49$17.93 billion$39.89-3.0%2.73 million3.12 millionAnalyst Report
Newcrest Mining logo
NCMGY
Newcrest Mining
N/A$16.98 billion$20.35-2.7%26,90047,850
Agnico Eagle Mines logo
AEM
Agnico Eagle Mines
26.10$16.68 billion$68.65-1.9%1.22 million1.47 millionAnalyst Report
Increase in Short Interest
Analyst Revision
Campbell Soup logo
CPB
Campbell Soup
7.98$14.06 billion$46.42+1.2%3.48 million2.75 million
First Quantum Minerals logo
FQVLF
First Quantum Minerals
N/A$13.18 billion$18.02-7.7%68,60054,960Analyst Report
Chow Tai Fook Jewellery Group logo
CJEWY
Chow Tai Fook Jewellery Group
33.62$12.44 billion$12.44-4.2%2,6003,370
JBSAY
JBS
27.32$12.20 billion$9.29-1.8%21,80080,300
iShares MSCI EAFE Small-Cap ETF logo
SCZ
iShares MSCI EAFE Small-Cap ETF
N/A$11.77 billion$69.07-1.6%2.61 million2.12 million
Sibanye Stillwater logo
SBSW
Sibanye Stillwater
1,607.00$11.75 billion$16.07-3.3%3.21 million2.37 millionAnalyst Downgrade
Fresnillo logo
FNLPF
Fresnillo
65.91$11.32 billion$15.16-1.6%18,30018,960
Kirkland Lake Gold logo
KL
Kirkland Lake Gold
13.85$11.12 billion$39.32-2.4%2.02 million2.15 millionAnalyst Revision
DSRLF
DiaSorin
54.87$11.02 billion$197.00-2.0%100100
Sibanye Gold logo
SBGL
Sibanye Gold
N/A$10.73 billion$12.26-2.9%5.47 million5.28 million
Polymetal International logo
AUCOY
Polymetal International
18.10$10.67 billion$22.62-4.7%300560
Teck Resources logo
TECK
Teck Resources
N/A$10.27 billion$19.63-0.4%5.11 million4.11 millionAnalyst Report
Analyst Revision
South32 logo
SOUHY
South32
51.50$9.85 billion$10.30-2.6%14,90047,920Increase in Short Interest
AngloGold Ashanti logo
AU
AngloGold Ashanti
24.26$9.16 billion$22.08-3.9%2.55 million3.18 million
Kinross Gold logo
KGC
Kinross Gold
8.19$9.03 billion$6.96-3.2%15.54 million19.77 millionAnalyst Report
Gold Fields logo
GFI
Gold Fields
21.17$8.12 billion$8.89-2.9%6.50 million7.10 millionDecrease in Short Interest
Coca-Cola Amatil logo
CCLAY
Coca-Cola Amatil
19.84$7.16 billion$9.92-1.1%4,10013,750
Royal Gold logo
RGLD
Royal Gold
34.26$6.83 billion$104.15-1.2%596,600509,670Analyst Report
Decrease in Short Interest
Lundin Mining logo
LUNMF
Lundin Mining
44.99$6.56 billion$9.00-2.4%68,30094,750Analyst Report
Pan American Silver logo
PAAS
Pan American Silver
183.32$6.16 billion$29.33-5.9%4.40 million3.62 millionDecrease in Short Interest
Thor Industries logo
THO
Thor Industries
26.21$5.82 billion$105.090.0%497,200629,800Insider Selling
Gildan Activewear logo
GIL
Gildan Activewear
N/A$5.48 billion$27.09-2.9%244,200295,930
Inspire Medical Systems logo
INSP
Inspire Medical Systems
N/A$5.41 billion$209.77-0.8%272,100254,840Unusual Options Activity
Yamana Gold logo
AUY
Yamana Gold
39.00$4.83 billion$5.07-4.7%15.34 million18.49 millionAnalyst Report
Increase in Short Interest
Pilgrim's Pride logo
PPC
Pilgrim's Pride
18.06$4.66 billion$19.14+0.1%312,200721,590
KAZ Minerals logo
KZMYY
KAZ Minerals
8.50$4.61 billion$4.93-2.0%3,80011,970
The Chemours logo
CC
The Chemours
N/A$4.45 billion$27.08-0.6%1.15 million1.32 million
SSR Mining logo
SSRM
SSR Mining
36.30$3.74 billion$17.06-4.7%2.22 million1.81 million
PBSFY
ProSiebenSat.1 Media
N/A$3.73 billion$4.00-0.5%8008,940
Alamos Gold logo
AGI
Alamos Gold
29.15$3.09 billion$7.87-4.7%3.36 million3.22 million
Hecla Mining logo
HL
Hecla Mining
N/A$3.07 billion$5.31-9.2%15.05 million10.93 millionAnalyst Report
Increase in Short Interest
UTZ
Utz Brands
N/A$2.71 billion$22.49-2.8%460,900548,880Analyst Report
First Majestic Silver logo
AG
First Majestic Silver
N/A$2.61 billion$11.81-6.6%15.54 million8.54 million
FCFS
FirstCash
19.64$2.45 billion$59.50-0.8%563,500496,290
Harmony Gold Mining logo
HMY
Harmony Gold Mining
N/A$2.41 billion$4.26-4.1%5.70 million6.62 million
Turquoise Hill Resources logo
TRQ
Turquoise Hill Resources
70.53$2.41 billion$11.99-3.0%889,6001.30 millionDecrease in Short Interest
SciPlay logo
SCPL
SciPlay
23.03$2.15 billion$17.04-1.2%1.99 million696,790High Trading Volume
Eldorado Gold logo
EGO
Eldorado Gold
10.93$2.12 billion$11.26-6.1%3.28 million3.15 millionAnalyst Report
Decrease in Short Interest
Coeur Mining logo
CDE
Coeur Mining
N/A$2.04 billion$8.39-6.4%6.19 million5.41 millionAnalyst Report
Progress Software logo
PRGS
Progress Software
35.31$1.99 billion$44.14-9.6%1.08 million404,490Earnings Announcement
Dividend Announcement
Analyst Report
High Trading Volume
Analyst Revision
Osisko Gold Royalties logo
OR
Osisko Gold Royalties
N/A$1.98 billion$11.83-3.3%1.02 million1.03 million
Pretium Resources logo
PVG
Pretium Resources
30.00$1.97 billion$10.50-2.3%1.91 million1.40 million
Goldman Sachs BDC logo
GSBD
Goldman Sachs BDC
61.03$1.88 billion$18.31-1.1%324,900477,790Increase in Short Interest
Centamin logo
CELTF
Centamin
19.88$1.84 billion$1.59-3.6%11,60027,410Increase in Short Interest
Hudbay Minerals logo
HBM
Hudbay Minerals
N/A$1.76 billion$6.60-6.6%1.14 million1.22 millionAnalyst Report
Analyst Revision
IAMGOLD logo
IAG
IAMGOLD
N/A$1.62 billion$3.28-3.5%6.40 million7.49 millionAnalyst Report
Analyst Revision
BALY
Bally's
N/A$1.60 billion$52.41+1.5%334,400278,270Analyst Revision
SPORTS DIRECT I/ADR logo
SDISY
SPORTS DIRECT I/ADR
N/A$1.54 billion$5.93+18.1%100100
Fortuna Silver Mines logo
FSM
Fortuna Silver Mines
58.08$1.53 billion$7.55-8.4%5.16 million4.71 million
Sally Beauty logo
SBH
Sally Beauty
14.29$1.52 billion$13.43-1.5%870,2001.12 million
ERRPF
Ero Copper
N/A$1.48 billion$16.31-3.7%2,2009,720Analyst Report
FPAFY
First Pacific
N/A$1.48 billion$1.640.0%32,70064,040
Seabridge Gold logo
SA
Seabridge Gold
N/A$1.47 billion$19.79-3.6%326,600409,090
Hochschild Mining logo
HCHDF
Hochschild Mining
N/A$1.44 billion$2.67-4.5%12,10012,950Decrease in Short Interest
Luk Fook Holdings (International) logo
LKFLF
Luk Fook Holdings (International)
N/A$1.40 billion$2.38+0.4%3,0001,750
DPMLF
Dundee Precious Metals
23.62$1.31 billion$6.85-4.1%7,30023,120Increase in Short Interest
Heavy News Reporting
Calavo Growers logo
CVGW
Calavo Growers
N/A$1.30 billion$73.29+0.4%62,30093,860
Sandstorm Gold logo
SAND
Sandstorm Gold
166.29$1.30 billion$6.65-3.1%1.36 million1.95 millionAnalyst Revision
Acacia Mining logo
ABGLF
Acacia Mining
N/A$1.27 billion$3.09+8.4%1,00032,275
Nexa Resources logo
NEXA
Nexa Resources
N/A$1.21 billion$8.76-5.2%33,60035,320
SNEX
StoneX Group
9.78$1.16 billion$59.76-6.0%122,70098,430
ChipMOS TECHNOLOGIES logo
IMOS
ChipMOS TECHNOLOGIES
12.39$1.15 billion$25.28-3.8%9,60013,310
Camtek logo
CAMT
Camtek
51.92$1.06 billion$24.40-1.4%112,400207,140
SLGGF
SolGold
N/A$973.94 million$0.47-0.3%48,80016,410High Trading Volume
Capstone Mining logo
CSFFF
Capstone Mining
N/A$895.17 million$2.22-3.9%53,70077,290
PALDF
North American Palladium
8.03$881.42 million$14.98+0.3%21,60024,024
GATO
Gatos Silver
N/A$797.20 million$12.53-15.5%614,300561,910
MMX
Maverix Metals
108.80$778.30 million$5.44-3.0%144,400185,870
Sportsman's Warehouse logo
SPWH
Sportsman's Warehouse
15.16$767.17 million$17.59-0.7%1.99 million2.05 millionIncrease in Short Interest
Golden Ocean Group logo
GOGL
Golden Ocean Group
N/A$752.21 million$5.23-1.7%587,000572,740Decrease in Short Interest
DRDGOLD logo
DRD
DRDGOLD
19.73$747.35 million$10.26-5.1%332,000349,440
CSV / Excel Export To export this table to CSV or Excel, upgrade to MarketBeat All Access.
The How and Why of Investing in Gold Stocks

Investing in gold is considered to be a core strategy for many investors. Gold is considered a safe haven and a hedge against the volatility of the market. In general, when gold prices rise, it means investors are concerned about the value of currencies.

This concern can be tied to monetary policy. For example gold prices soared in the aftermath of the financial crisis. The United States Federal Reserve Board (i.e. The Fed) began a program of quantitative easing that flooded the stock market with liquidity. While economists will debate the merits of this policy for decades, there’s no question that it devalued the U.S. dollar and caused gold to climb.

In fact, in September 2011, the spot price of gold soared to $1,900 an ounce. In the aftermath of the pandemic caused by the novel coronavirus, gold prices are approaching these record levels again. That is making gold once again one of the most practical investments you can make.

And in 2020, investing in gold has never been easier, but it does require some research. The most common way for investors to buy and sell gold is by buying the physical metal itself, usually in the form of gold coins. However, exchange-traded funds (ETFs) are becoming a popular alternative because they mirror the price movement of gold without the obstacles that can come from the cost (and peripheral obstacles like storing and insuring) associated with buying gold directly.

Introduction

Gold and other precious metals are widely considered to be a hedge against inflation. However, in volatile times like these investors look to gold because of its value. Simply put, the price of gold tends to rise when investors believe that the value of currency is going to fall.

Gold can be purchased in many ways. One way is to purchase gold in its physical form. This is frequently done by buying gold coins, but it can also mean buying actual gold bullion.

This approach has its drawbacks. Specifically gold can be expensive. At the time of this writing, an ounce of gold is trading for over $1,800 an ounce. That’s almost three times the price of one share of Tesla (NASDAQ:TSLA). Plus, physical gold also should be stored and insured. And taking possession of physical gold usually involves transaction fees of some sort.

That’s why investing in gold stocks can be a desirable outcome. The purpose of this article is to give you an overview of how to invest in gold stocks. We’ll look at the different types of gold funds that exist, the factors you should consider when choosing gold stocks. We’ll also look at the pros and cons of trading gold on the futures market using options contracts.

How do you invest in gold stocks?

Investing in gold stocks is less expensive and offers more liquidity as a way to get involved with precious metals. However, gold does not exist as a company that you buy shares of. Instead when you hear the words “gold stocks” it means you are directly buying shares of a mining company such as Barrick Gold (NYSE:GOLD) or you are buying into a mutual fund or exchange-traded fund (ETF).

When you invest in a mining stock, you’re not investing directly into physical gold. And while it’s true that shares of a mining company should have a correlation to physical gold, the correlation is often a loose one. This is because mining companies have opportunities and challenges that are unique to their sector.

Also as corporations, they have an obligation to their shareholders. While this can sometimes affect capital growth, many mining stocks do pay a dividend which can make them a desirable addition to a value investor’s portfolio. For example Newmont Corporation (NYSE:NEM) pays a dividend yield of 2.74%.

How to Invest in Gold ETFs

Just how attractive has it become to invest in gold ETFs? According to Gold.org, in the first five months of 2020, investors bought into gold ETFs at a record pace. Through May 31, investors bought $33.7 billion worth of gold ETF shares.

Shares of an ETF can be bought and sold throughout the trading day just like shares of stock. This is a crucial difference between an ETF and a mutual fund. Since the price of gold can move rapidly in either direction (and sometimes it can make large moves), ETFs are becoming more attractive for investors.

There are many mutual funds and exchange-traded funds (ETFs) that move with the price of gold. When choosing to invest in gold stocks via an ETF or mutual fund, investors have options. One is to find a fund that invests in the metal itself. One such example is the SPDR Gold Shares ETF (NYSE:GLD). This fund is the oldest, and largest, physically backed gold exchange traded fund (ETF) in the world.

One share of the ETF is valued at one-tenth the spot price of gold. At the time of this writing that would be about $180.

The other option is to find a fund that invests in the stocks of physical gold as well as into gold mining companies. These funds may have price movement that is more volatile than an investment in the physical metal itself. Plus, mining companies are subject to geopolitical or environmental concerns that will not affect the cost of physical gold.

What Factors Should You Consider When Buying Gold Stocks?

As is the case when you buy any mutual fund or ETF you should pay attention to the expense ratio (i.e. the annual fee) charged by the fund. The average expense ratio for gold ETFs is approximately 0.65%.

Another factor to consider is the five-year return of the ETF. This is particularly true if you are investing in a fund, such as the GOLD fund, that is tied directly to the physical metal. Roughly speaking the returns should approximate the movement of gold over that period.

Gold Stocks and Options Trading

In recent years, more experienced investors are trading options on physical gold. This is because options trading is a way to, potentially, make a profit while putting less capital at risk.

Options trading means trading in gold futures. A futures contract is traded on an exchange. Buyers and sellers negotiate a specific quantity and price for gold at a specific date.

When you buy an option you are buying the right, although not the obligation, to buy or sell a specific equity at the option price. Essentially you’re betting on price action to occur in a specific direction. If you’re right, it can be very profitable. If you’re wrong, you’re simply out the premium you paid to buy the option.  

Investors can choose to take a long or short position in gold. For those unfamiliar with options trading, a long position means an investor is buying gold with the expectation of gold prices rising. In this case, the investor is looking to buy gold at a lower price. By contrast a short position is taken when an investor is looking to sell gold in anticipation of price falling. In this case, the investor is selling gold but intends to cover it later at a lower price.

While this is a different process than buying shares directly, some investors find it to be a more efficient way to trade gold. ETFs come with management fees and taxes on capital gains. Plus regardless of if the fund is actively or passively managed, every ETF has a fund manager that makes decisions on the investor’s behalf.

By contrast, trading futures avoids all of that. And because most investors can use margin to trade, every $1 can represent up to $20 of physical gold.

Trading gold futures is often used as a hedging strategy against the volatility of the stock market or against a weak dollar. Trading gold using options is also a way for speculators to invest in gold without having to have physical gold in their possession.

The final word on investing in gold stocks

For many investors, precious metals are a constant in their portfolio. Others move in and out of gold and other metals as conditions warrant. That’s one reason why gold stocks can be an appealing option. Rather than hold the physical asset, investors can trade shares just like they do for other equities in their portfolio.

And if investors don’t want to trade in the options market, they can choose to invest in the security of an exchange-traded fund (EFT) or mutual fund. While these investments are not going to hold as much value for investors as holding the physical asset, they are a low cost way of maintaining a position in gold without the need to hold physical bullion.

However you decide to invest in gold, it’s important to understand that while gold is known as a true store of value, it can be volatile. Therefore investing in gold while not at a risk of going to zero does contain a level of risk that may be uncomfortable for risk-averse investors.



Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.