What are 5 gold stocks and ETFs to watch?
Trading or investing in gold stocks or gold ETFs can be a great way to gain exposure to the gold market. Below is a list of the most popular gold stocks and ETFs to watch.
Top 5 gold stocks to watch
These five stocks have been chosen based on various factors, including market cap, future growth prospects, dividends, and latest financial results.
Newcrest Mining Limited (ASX: NCM)
Headquartered in Melbourne, Newcrest Mining is the most valuable Australia Stock Exchange (ASX)-listed gold producer and one of the largest gold producers in the world.
Newcrest Mining shares are up 15% in the first three months of 2023 alone. The stock has an average price target of A$25.73 and ‘hold’ rating from 11 of 16 analysts polled by Refinitiv, as of March 2023.
As of early-2023, Newcrest operates mines in Australia, Canada and Papua New Guinea. One of its key assets is the Brucejack gold mine which is situated 950 kilometres from the Canadian city of Vancouver. According to Newcrest, Brucejack is one of the highest-grade operating gold mines in the world.
Another key asset is the Cadia gold and copper mine, which Newcrest has claimed to be one of Australia’s biggest gold mining operations.
Fresnillo PLC (LON: FRES)
Fresnillo was originally founded as a division of Industrias Peñoles. A minority stake was then spun off and listed on the London Stock Exchange (LSE) in May 2008, with a secondary listing in Mexico.
The mining company is the world’s largest primary silver (silver from ore) producer, and Mexico’s second largest gold miner.
Fresnillo’s core operations are in Mexico, with seven operating mines in Fresnillo, Saucito, Ciénega ,Herradura, Soledad-Dipolos, Noche Buena and San Julián. It also has two development projects in the pipeline - the Pyrites Plant at Fresnillo and Juanicipio, both of which have been completed and awaiting tie-ins of plants to national electricity grid, and three advanced exploration projects – Orisyvo, Rodeo and Guanajuato, as well as a number of other long term exploration prospects.
As of March 2023, Fresnillo shares have an average 12-month price target of £878 (equating to an upside potential of 13.2%) and majority rating of ‘hold’ from 11 analysts polled by Refinitiv.
Barrick Gold Corp (NYSE: GOLD)
Barrick Gold Corp probably has the most enviable ticker, simply symbolised as ‘GOLD’, on the New York Stock Exchange (NYSE). The stock is down 7.4% year-to-date.
The mining company saw net earnings (on an unadjusted basis) decline by 78.7% in 2022, thanks to significantly lower gold production (down 6.7%). However, it managed to increase copper production by 6% year-on-year in 2022.
Despite that, Barrick returned a ‘record’ US$1.6 billion to shareholders in 2022 through dividends and share buybacks. It also announced a further share buyback programme of up to $1 billion for the next twelve months.
During the past quarter, Moody’s upgraded the company’s long-term corporate credit rating from Baa1 to A3. This makes Barrick the highest-rated company in the gold mining sector.
Calibre Mining Corp (TSE: CXB)
Smallest gold-related miner on this list aside (by valuation but not by calibre), Calibre Mining’s share price has seen the greatest increase year-to-date, rallying over 20% in the first three months of 2023.
The Canadian-listed multi-asset producer describes itself as an ‘Americas-focused, growing mid-tier gold producer with a strong pipeline of development and exploration opportunities’ across the US and Nicaragua.
Calibre achieved free cash flow of C$56.5 million as of 31 December 2022. The company’s gold production hit record levels in 2022, increasing 19.5% from the previous year.
Calibre is expecting gold production output to increase another 20% in 2023.
Rio Tinto (ASX, LON, NYSE: RIO, NYSE: RIO)
The multinational conglomerate, named after a mining region in Spain, is the third largest miner in the world by market cap. It is involved in the exploration, development, and production of mineral-based resources, including iron ore, gold and copper.
Rio Tinto shares are listed on the ASX, LSE, and NYSE. The stock is a component of both the FTSE 100 index and S&P/ASX 200 index.
The multi-asset miner saw free cash flow fall by half to US$9 billion in 2022, with earnings down 30%, due to ‘challenging market conditions’.
In the gold pipeline is the Oyu Tolgoi copper-gold project in Mongolia which Rio Tinto gained through the acquisition of Turquoise Hill Resources.
Gold ETFs to watch
- GraniteShares Gold Trust ETF
- ETFS Physical Swiss Gold Shares ETF
- iShares Gold Trust
- SPDR Gold Shares
- Sprott Gold Miners ETF
- VanEck Vectors Gold Miners ETF (US)
- iShares MSCI Global Gold Miners ETF
Another way to gain exposure to gold stocks is to trade or invest in gold exchange traded funds (ETFs). These funds passively track the movement of an industry or basket of stocks and give you broad exposure to that sector – for example, gold mining – rather than exposure to just one company’s shares.
There are a variety of options to look at when you’re deciding on the best gold ETF for you, as different funds will have different functions, costs and offerings.
Some funds buy and hold gold bullion. For example, GraniteShares Gold Trust ETF is designed to track the performance of the price of gold and it’s extremely sensitive to the price of the metal. Similar gold-based ETFs include ETFS Physical Swiss Gold Shares ETF, iShares Gold Trust and SPDR Gold Shares.
There are also equity-based ETFs that track companies involved in the mining and production of gold. For example, the Sprott Gold Miners ETF consists of a basket of over 30 gold and silver mining stocks that trade on US exchanges. Similar equity-based gold ETFs include VanEck Vectors Gold Miners ETF and iShares MSCI Global Gold Miners ETF.
Learn more about gold ETFs
What’s the outlook for gold markets and gold stocks?
It’s been over two years since the Covid-19 pandemic shook the financial markets. But, gold managed to sail through almost unscathed. In 2020 alone, a record 877 tonnes of gold was added to global holdings, the equivalent to more than £33 billion. By September 2022, the price of gold was nearing a record high.
During the pandemic – and again during the 2022 economic crisis - many investors used gold as a hedge against inflation while they watched the financial markets fall. This is because gold is typically seen as a safe haven in times of financial crisis.
It’s worth noting that this is not always the case, especially as investors may turn to other asset classes in tough times – such as the US dollar, Japanese Yen and bonds. So, if global markets crash, there is always the possibility that the gold market and gold stocks could fall as well.
With us, you can invest in gold shares and ETFs from zero commission with share dealing, or you can trade on leverage with derivatives like spread bets and CFDs.
Learn more about trading and investing in the gold market
Are gold stocks a good investment?
Whether or not gold stocks are a good investment depend on your specific preferences and financial goals.
As an alternative to investing in gold itself, gold stocks are a popular choice for many investors. The share prices of gold mining and production companies don’t necessarily respond as quickly to changes to the value of gold as the commodity price itself, meaning they can be a good way to hedge exposure to gold prices. In certain environments, some traders even believe that gold stocks have the potential to outperform the precious metal itself.
However, it’s important to remember that gold stocks come with the same risks as many other stocks. There is potential for low revenues and disruptions to the supply chain, which can affect share prices.
Invest in gold stocks with our share dealing platform
Instead of investing, you could trade gold stocks. You’d be speculating on the underlying price of the gold mining company’s shares, without taking ownership of the stocks themselves.
When you trade with us, you’ll do so with derivatives like spread bets or CFDs. This means you can go long and short – which means you can take a position on prices rising or falling and make a profit or loss depending on whether your prediction is correct.
Note that leverage means increased risk, as it magnifies both profits and losses. It’s important to take steps to manage your risk.
Ready to start trading gold stocks?
How to start trading gold stocks and ETFs
- Create your spread betting or CFD trading account
- Search for the gold stock or ETF you want to trade
- Select ‘buy’ if you think the price will rise, or ‘sell’ if you believe it’ll fall
- Set your amount per point of movement, and put in stop-losses and limits
- Open and monitor your position
If you don’t feel ready to start trading just yet, you can open a demo account. This enables you to build your confidence in a risk-free environment by trading with virtual funds as practice. You can also continue to learn more with IG Academy’s range of online courses.
Top gold stocks and ETFs summed up
- Gold has long been considered a safe-haven asset for traders and investors, which is why gold stocks and ETFs have become so popular
- You can get exposure to a single gold stock or a basket of shares with us, via trading or investing
- When you trade on gold stocks and ETFs, you don’t take ownership – you only speculate on price movements
- You can learn more about trading online using IG Academy, or practise your trading using our demo account
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Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.