There has always been a degree of scorn from Wall Street and “so-called” investment professionals for those who invested in Gold. Laughed at as “Gold Bugs,” the argument against the precious metal, even though Gold is one of the most significant financial assets in the world, and central banks have been loading up on the commodity, is that typically, it’s not a tradeable investment. Warren Buffett owns zero and has previously said it is an investment with “no utility.”

The argument for gold and gold miners is two-fold: the precious metal can provide a strategic hedge against inflation, and some of the top miners also mine silver and other needed commodities used in industrial applications. One thing is for sure: from a technical standpoint, there could be a massive breakout to the upside as spot gold is trading through highs printed back in March.

We screened our 24/7 Wall Street commodity database, looking for the top miners and royalty companies rated Buy and pay dependable (sometimes significant) dividends. Five top stocks stood out for investors.

Agnico Eagle Mines

This top stock is one of Wall Street’s most preferred North American gold producers and pays a dependable 3.21% dividend. Agnico Eagle Mines Limited (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 region, the United States, and Sweden.

The Company and its shareholders have total 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.

The stock has rallied off the early fall lows, and with inflation still surging, you can bet many savvy portfolio managers are ready to add back top companies like this that trade well below the 52-week high.

Barrick Gold

This stock is another one of the top companies in the sector and still offers a solid entry point and a 2.46% dividend. Barrick Gold Corporation (NYSE: GOLD) and Randgold Resources completed their merger on Jan. 1, 2019. This has created the world’s largest gold company in 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
• 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 in South America and North America. Barrick Gold Corporation has a strategic cooperation agreement with Shandong Gold Group Co. Ltd.

Kinross Gold

This is another smaller-cap mining company that more aggressive investors may want to consider that pays a 2.15% dividend. Kinross Gold Corporation (NYSE: KGC) engages in the acquisition, exploration, and development of gold properties principally in the United States, the Russian Federation, Brazil, Chile, Ghana, and Mauritania.

The company is also involved in extracting and processing gold-containing ores, reclamation of gold mining properties, and producing and selling silver.

Kinross Gold reported an outstanding third-quarter 2023 profit of $109.7 million or 9 cents per share, compared with $65.9 million or 5 cents per share reported in the year-ago quarter.

Newmont Corporation

This is one of the largest mining companies, pays a massive 4.26% dividend,  and is a solid buy for more conservative accounts. Newmont Corporation (NYSE: NEM) is a gold producer which produces gold. It operates through the following geographical segments: North America, South America, Nevada, Australia, and Africa.

The North America segment consists primarily of:

• Carlin, Phoenix, Twin Creeks, and Long Canyon in the state of Nevada
• Cripple Creek and Victor in the state of Colorado

The South American segment consists primarily of:

• Yanacocha in Peru
• Merian in Suriname

The Australia segment consists primarily of:

• Boddington, Tanami, and Kalgoorlie in Australia

The Africa segment consists primarily of:

• Ahafo and Akyem in Ghana

Wheaton Precious Metals

This precious metals company makes good sense for more conservative accounts looking to have exposure to the sector. Wheaton Precious Metals (NYSE: WPM) is a Canadian-based 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
• Lundin Mining Zinkgruvan mine in Sweden
• Glencore’s Antamina and Yauliyacu mines in Peru

Proper asset allocation should always include at least a single-digit percentage holding of precious metals like gold and silver. Not only does gold hedge inflation, but the sector has been stagnant most of the year, and with inflation still way above the Federal Reserve target of 2%, continued demand from central banks and worried investors could drive the prices much higher in December and 2024.

 

 

 

 

 

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