After gold blew through the $2,000 an ounce level to new all-time highs, both gold and silver experienced a classic pullback as interest rates drifted higher and some strength in the dollar was seen. Gold dropped 10% from the highs, and silver quickly backed up a stunning 20%. While all this was happening, major firms on Wall Street were raising their targets for the precious metal, some to as high as $3,000 per ounce.

Just as the selling was thinning out, we find out that legendary investor Warren Buffett disclosed a stunning 20 million share purchase of Barrick Gold Corp. (NYSE: GOLD). This is remarkable as for years Buffett has shown a distinct disdain for gold, and many think either Ted Weschler or Todd Combs made the purchase. Both are investment managers that work for Buffett’s Berkshire Hathaway investment giant and run a portion of the company’s stock portfolio.

It’s important to remember that key reasons for owning gold remain in place, and rates have dropped again and the dollar is trading at the lowest level in over two years. The volatility that surely will accompany the upcoming election, along with the issues with China, the domestic unrest, the overbought stock market and a host of others, are not going away anytime soon.

We screened the BofA Securities gold research coverage looking for stocks that make sense for investors looking to initiate or add to precious metal holdings. We found five that look like solid ideas, and all are rated Buy. It’s important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Agnico Eagle Mines

This is one of Wall Street’s most preferred North American gold producers. Agnico Eagle Mines Ltd. (NYSE: AEM) is a senior Canadian gold mining company that has produced precious metals since 1957. Its eight mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these regions, as well as in the United States and Sweden.

The company and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983, and it reported a solid second-quarter earnings beat with production higher and costs lower, driven by LaRonde. Commercial production of 383,000 ounces was 6% higher.

Shareholders receive just a 0.99% dividend. The BofA Securities price target on the shares is $90, and the Wall Street consensus target is $84.21. Agnico Eagle Mines stock closed Thursday’s trading at $80.91 a share.

Barrick Gold

Despite the huge Buffett purchase, shares of this top company still offer a solid entry point. Barrick Gold and Randgold Resources completed their merger on January 1, 2019. This created the world’s largest gold company in terms of production, reserves and market capitalization.

The company holds a 50% interest in the Veladero mine located in the San Juan Province of Argentina; 50% interest in the KCGM, a gold mine located in Australia; 95% interest in Porgera, a gold mine located in Papua New Guinea; 50% interest in the Zalda­var, a copper mine located in Chile; and 50% interest in the Jabal Sayid, a copper mine located in Saudi Arabia.

Barrick also owns gold mines and exploration properties in Africa and gold projects located in South and North America. It has a strategic cooperation agreement with Shandong Gold.

The company reported Second-quarter earnings were better than expected and the company hiked its quarterly dividend by 14%. Barrick Gold maintained 2020 guidance of 4.6 million to 5.0 million ounces and also guided second-half 2020 gold output to be in line with the first half of 2.4 million ounces.

With the dividend increase, investors now receive a 1.07% yield. BofA Securities has a $36 price target, while the consensus target is $32.55. Barrick Gold stock closed at $29.95 on Thursday.

This stock has surged off the March lows and looks poised to move even higher. Eldorado Gold Corp. (NYSE: EGO) engages in the exploration, discovery, acquisition, financing, development, production, sale and reclamation of mineral products, primarily in Turkey, Canada, Greece, Brazil and Romania.

The company primarily produces gold, as well as silver, lead, zinc and iron ore. It operates five mines. Kisladag and Efemcukuru are located in western Turkey, Lamaque in Canada, and Olympias and Stratoni located in northern Greece.

Better than expected second-quarter earnings were due to lower than expected costs. For 2020, Eldorado maintained its 2020 operating guidance and said it expects gold output to be higher in the second half.

BofA Securities raised its $13 price objective to $15. The posted consensus target price of $1.98 looks to be incorrect as Eldorado Gold stock closed most recently at $11.44.

Kinross Gold

Investors who are more aggressive may want to consider this smaller cap mining company. Kinross Gold Corp. (NYSE: KGC) engages in the acquisition, exploration and development of gold properties, principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania.

Kinross Gold is also involved in the extraction and processing of gold-containing ores, reclamation of gold-mining properties and the production and sale of silver. As of December 31, 2019, its proven and probable mineral reserves included approximately 24.3 million ounces of gold and 55.7 million ounces of silver.

The BofA team attributes the latest earnings beat in part to a lower tax rate. While Kinross kept its 2020 guidance withdrawn, it is on track to meet its prior gold equivalent ounce output and cost guidance for the year. The company reduced its net debt by $160 million quarter over quarter, largely due to free cash flow generation, and it sees higher output in the second half.

The $8.90 BofA Securities price target was raised to $11.25. The consensus target Kinross Gold stock is $10.53, and the most recent share price was $8.92.

Wheaton Precious Metals

This precious metals royalty stock makes good sense for more conservative accounts looking to have exposure to the sector. Wheaton Precious Metals Corp. (NYSE: WPM) is a Canadian precious metals streaming company with approximately 60% of its revenues from the sale of silver and 40% from gold.

Under the terms of long-term contracts, the company purchases silver and gold from a variety of mines, including Goldcorp’s Penasquito mine in Mexico, Vale’s Salobo mine in Brazil, the Lundin Mining Zinkgruvan mine in Sweden, and Glencore’s Antamina and Yauliyacu mines in Peru, then sells the silver and gold into the open market.

Shareholders receive a 0.76% dividend. The BofA Securities price target is now a whopping $64.50, up from $47.00. The consensus target is $55.33, and Wheaton Precious Metals stock was last seen at $52.48 per share.

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Proper asset allocation should always include at least a single-digit percentage holding of precious metals like gold and silver. Not only do they hedge inflation over the long term, but they can really help if the market does go into correction or bear market mode, as they tend to trade inverse to markets.

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