Investing in Gold: Top Mining Stocks to Consider
For Immediate Release Chicago, IL – June 3, 2024 – Today, Zacks Investment Ideas feature highlights including Barrick Gold GOLD, Agnico Eagle Mines AEG and Harmony Gold HMY.
The topic of investing in gold can elicit a wide range of responses from people, from strong vitriol to deep praise. You have the gold bugs on one end, whose portfolios are dominated by the yellow metal, and on the other end you have investing purists, who claim because it has no earnings, it has no place in their portfolio.
As with most things in life and investing, the truth lies somewhere in the middle of those two perspectives.
Gold has been a store of value for thousands of years, and though it has not made the same long-term returns as US equities, it can be a valuable hedge in a broadly invested portfolio and can add uncorrelated returns during the most challenging periods.
**Gold Quietly Outperforming the Stock Market**
Most notably, gold has outperformed the US stock market YTD, and over the last three months the outperformance has been even more stark. Additionally, since the start of 2022, Gold has outperformed the S&P 500 by a significant margin – gold prices are up 28%, while the stock index is up 14.5% in that time.
**Barrick Gold: Diversified Mining Behemoth**
Barrick Gold Corporation is one of the world’s leading gold mining companies, headquartered in Toronto, Canada. Founded in 1983, Barrick operates mines and projects across North America, South America, Africa, and the Middle East. The company is known for its extensive gold reserves, efficient production processes, and commitment to sustainable mining practices.
**Agnico Eagle Mines: Huge Earnings Growth Forecasts**
Toronto-based Agnico Eagle Mines AEM is a gold producer with mining operations in Canada, Mexico and Finland, and exploration activities in Canada, Europe, Latin America, and the United States.
**Harmony Gold: Impressive Stock Price Appreciation**
Harmony Gold HMY is a South Africa based gold mining company and conducts underground and surface gold mining. It is also engaged in related activities such as exploration, processing, smelting, and refining.
In my own research, I have found that over the long-term, a portfolio allocation to gold of 5%-15% gets you much of the diversification and hedging benefits of owning the commodity. More exposure than that and you may miss out on some of the returns from traditional stocks.
Since 2000, Zacks’ top stock-picking strategies have blown away the S&P’s +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Aegon NV (AEG) : Free Stock Analysis Report Harmony Gold Mining Company Limited (HMY) : Free Stock Analysis Report Barrick Gold Corporation (GOLD) : Free Stock Analysis Report
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