$5,000 Gold Is Coming — Don’t Miss These 2 Top Gold Stocks

By Rich Duprey Published Oct 19, 9:24AM EDT

Key Points

Bank of America forecasts gold at $5,000 an ounce by 2026 due to investment demand and geopolitical risks.
Central banks, inflation, and monetary policy shifts are driving the global gold rush.
Gold’s historic breach of $4,300 per ounce makes the two stocks below must-buys.

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$5,000 Gold Is Coming — Don’t Miss These 2 Top Gold Stocks — © RomanR / Shutterstock.com

Bank of America just made a bold forecast. It says gold will reach $5,000 per ounce by 2026, a striking prediction that is fueled by a global rush into gold.

Central banks, particularly in China and India, are aggressively accumulating gold to diversify reserves as confidence in the U.S. dollar wanes amid rising U.S. debt concerns. Geopolitical tensions, including the war in Ukraine and escalating U.S.-China trade disputes, are also pushing investors toward gold as a safe-haven asset. Persistent inflation, despite cooling in some regions, continues to erode purchasing power, making gold an attractive hedge.

Expectations of looser monetary policies, with the Federal Reserve signaling potential rate cuts later this year and into 2026, further bolster gold’s appeal. Robust demand from exchange-traded fund (ETF) investors and physical buyers in Asia adds to the momentum. Gold’s historic breakthrough above $4,300 per ounce last week — a record high for the precious metal — underscores the urgency behind the move. Gold is up 60% in 2025, far outpacing even the stock market’s rise.

The two stocks below, with their strong fundamentals and leveraged exposure to gold’s rise, are must-buy opportunities to capitalize on this unprecedented rally.

Agnico Eagle Mines (AEM)

Agnico Eagle Mines (NYSE:AEM | AEM Price Prediction) is a premier gold miner positioned to thrive as gold climbs to $5,000. Operating in stable jurisdictions like Canada, Finland, and Mexico, AEM produces 3.4 million ounces annually, with ambitious plans to boost output through expansions like Detour Lake and Odyssey.

The miner’s all-in sustaining costs (AISC) of $1,289 per ounce — among the industry’s lowest — ensure massive margin expansion at higher gold prices. At $4,300 gold, AEM’s free cash flow per share is robust at $4.50, but at $5,000, margins could exceed 60%, potentially doubling cash flow.

Earlier this year, analysts at BMO Capital Markets resumed coverage of AEM with an outperform rating and a $181 per share price target at a time AEM was trading at $122 per share, citing Agnico’s ability to generate significant free cash flow from high-margin, secure operations. Last week, Bank of America raised its price target to $226 per share.

Trading at a forward P/E of 18x, below the sector average of 22x, AEM offers compelling value. Its strong balance sheet supports reinvestment in high-return projects and a growing dividend appealing to income-focused investors.

Unlike peers in riskier regions, AEM’s Tier 1 assets minimize geopolitical and operational disruptions, a critical edge in today’s volatile world. Recent production upgrades, such as a 10% increase at its Nunavut operations, and a stellar environmental record enhance its reputation.

AEM’s disciplined cost management and exploration success, with new finds in Quebec, position it for sustained growth. As gold prices escalate, AEM’s ability to deliver consistent results while scaling output makes it a top pick for investors seeking leveraged exposure to the gold rally.

Royal Gold (RGLD)

Royal Gold (NASDAQ:RGLD) offers a low-risk way to profit from gold’s surge to $5,000 without mining challenges. As a streaming and royalty company, it funds miners upfront for discounted future gold, capturing 70% of price upside with zero operational costs. Its diversified portfolio spans over 50 producing assets, including Mount Milligan and Pueblo Viejo, generating around $600 million in EBITDA at current prices. At $5,000, RGLD’s EBITDA could hit $1 billion, with cash flow per share of $8 rising 80%.

Analysts from CIBC and Bank of America recently boosted price targets, highlighting RGLD’s low price-to-cash flow multiple. With minimal debt and a 1% dividend yield with consistent increases, RGLD suits conservative investors. Its fixed-cost streams ensure profitability even if gold prices dip, but at $5,000, margins soar.

Unlike miners facing labor or permitting risks, RGLD’s model avoids operational volatility, offering stability in uncertain times. New streams, like the Cortez project, and recent acquisitions expand its growth pipeline. Royal Gold’s exposure to by-product metals like copper further enhances revenue diversity.

The gold streamer has a proven track record of disciplined capital allocation and shareholder returns, making it a standout choice for gold’s rally.

About the Author Rich Duprey →

After two decades of patrolling the dark corners of suburbia as a police officer, Rich Duprey hung up his badge and gun to begin writing full time about stocks and investing. For the past 20 years he’s been cruising the markets looking for companies to lock up as long-term holdings in a portfolio while writing extensively on the broad sectors of consumer goods, technology, and industrials. Because his experience isn’t from the typical financial analyst track, Rich is able to break down complex topics into understandable and useful action points for the average investor. His writings have appeared on The Motley Fool, InvestorPlace, Yahoo! Finance, and Money Morning. He has been interviewed for both U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, and USA Today.