Gold had a scorching run earlier this year, and while some have started to exit the precious metal, there are plenty of reasons for investors to take another look now. After closing at a 10-year high of $2,063 per ounce back in early August, the final trades on Tuesday came in at the $1,815 level. That is a nice bounce from recent lows, but still close to a 10% decline from the summer highs.

The recent decline came despite the fact that real five-year and 10-year rates recently declined, and the dollar has weakened against major gold consumer currencies. The commodities team at BofA Securities remains positive on gold for 2021, but they lowered the spot price target to $2,063 from $2,159 and also trimmed price targets on many of the top gold stocks. Four of them remain Buy-rated and are top picks.

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Also note that the SPDR Gold Shares (NYSEARCA: GLD) exchange-traded fund is an outstanding vehicle for investors not looking to buy gold-mining companies, as the fund literally buys physical gold.

B2Gold

This is a small-cap gold stock for aggressive investors looking for sector exposure. B2Gold Corp. (NYSE: BTG) is a global, growth-oriented mid-tier gold producer whose primary assets include gold mines located in Nicaragua (La Libertad and El Limon), the Philippines (Masbate) and Namibia (Otjikoto) and Mali (Fekola).

Earlier this year, the company announced positive drill results from the Mamba zone, which is located within the Anaconda area approximately 20 kilometers from the Fekola Mine, as well as positive infill drill results from the Fekola mineral resource area and step-out results north of the Fekola resource.

The BofA Securities team has lowered the price target from $8.50 a share to $7.80. The Wall Street consensus target is much lower at $3.50. B2Gold stock closed trading on Tuesday at $5.74 a share, up close to 3% on the day.

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.

BofA Securities recently lowered its price target for this stock to $11.50 from $11.75. That compares with a higher consensus target of $12.88. Kinross Gold stock closed on Tuesday at $7.46 a share, after a 4.5% move higher on the day.

This is one of the largest mining companies and a solid buy for more conservative investors. Newmont Corp. (NYSE: NEM) is a leading gold and copper producer. It employs approximately 29,000 employees and contractors, with the majority working at managed operations in the United States, Australia, Ghana, Peru, Indonesia and Suriname. Newmont is the only gold producer listed in the S&P 500 index.

In recent years, the company announced that “first gold” has been poured at its new mine, called the Merian gold mine in Suriname in South America. Newmont reported Merian contains gold reserves of 5.1 million ounces and that annual production is expected to average between 400,000 and 500,000 ounces of gold at competitive costs during the first five full years of production.

In keeping with its capital return objectives, Newmont announced a 79% hike in its quarterly dividend to $0.25 in February, effective the second quarter of 2020. The company has repurchased 12.4 million shares for $506 million, halfway to achieving its $1 billion share repurchase program. Approaching its centenary, the company has rebranded itself from Newmont Goldcorp to Newmont Corporation.

Shareholders receive a solid 2.66% dividend. The $86.00 BofA Securities price objective was lowered to $80.50, while the posted consensus target price was last seen at $79.57. Newmont stock closed trading at $60.21 on Tuesday.

Wheaton Precious Metals

This precious metals royalty stock makes good sense for more conservative investors 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, and then sells the silver and gold into the open market.

Shareholders receive a 1.17% dividend. The BofA Securities price target slipped to $60.00 from $64.50, which is now lower than the $60.73 consensus target. Wheaton Precious Metals stock closed most recently at $40.05 a share, after close to a 5% gain on Tuesday.

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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 the markets.

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