People have looked to gold (NYSE:GOLD) as a sanctuary during turbulent market times for years. By purchasing the stocks of firms involved in exploration and mining, many investors have increased their exposure to the precious metal. Franco-Nevada Corp., located in Canada, Newmont Corp., and Newcrest Mining Ltd., based in Australia, are a few of the industry’s key participants.
Over the past year, gold equities, as represented by the VanEck Gold Miners ETF (GDX), have underperformed in the overall market. Over the last 12 months, GDX has generated a total return of -20.8%, which is less than the Russell 1000 Index’s total return of -15.2%. All information in the tables, as well as the market performance figures and business developments below, are as of September 22, 2022.
The top five gold stocks with the best value, the quickest growth, and the most momentum are listed below.
Best Gold Stocks (NYSE:GOLD) for Value
Value investing is a factor-based investment technique that entails selecting stocks that you think are undervalued compared to their inherent value, often by evaluating the stock’s price about one or more key company measures. The price-to-earnings (P/E) ratio is a frequently used measure of value. Value investors hold that if a company is undervalued about its inherent value—in this example, as determined by its P/E ratio—then the stock price may increase more quickly than that of rivals as the price catches up to the firm’s value.
The stocks with the lowest 12-month trailing P/E ratio are those listed above.
Centerra Gold Inc.: Centerra Gold is a gold and copper mining and exploration business with its headquarters in Canada. It operates, explores, develops, and buys gold and copper resources in Turkey, British Columbia, Canada, and other countries. The firm had approximately 4.9 million ounces of proven and probable gold mineral reserves as of December 31, 2021. Centerra said on September 6 that Paul Wright, a director, will take over as president and chief executive officer (CEO) in Scott Perry’s absence. Wright formerly served as Eldorado Gold Corp.’s president and CEO. The process of finding a new CEO is underway.
The intermediate gold producer Torex Gold Resources Inc. is situated in Canada. It explores, develops, and operates the 29,000 acre Morelos Gold Property, which is 100% owned by it and located in Mexico’s Guerrero Gold Belt. The El Limón Guajes Mine Complex, which consists of open-pit and underground mines as well as a processing plant, and the advanced-stage Media Luna project are the company’s main assets. Additionally, Torex shares are traded OTC in the U.S. under the ticker TORXF.
Mining and metals processing firm Sibanye Stillwater Ltd. is situated in South Africa. Gold, copper, zinc, and platinum group metals are the main targets of its activities. It operates overseas, including in the United States, Australia, South Africa, and Zimbabwe. In 2021, the business generated 1.1 million ounces of gold.
I-80 Gold Corp.: I-80 Gold is an exploration, development, and production-focused gold mining corporation with activities mostly in Nevada. It also has four additional sites in various phases of development, in addition to being the sole owner of the 12,000-acre Lone Tree property in northern Nevada. The business announced on August 30 that high-grade deposits had been found at its Ruby Hill location in Nevada. According to i-80, the zone will ultimately yield base metals, silver, and gold.
Victoria Gold Corp.: Victoria Gold is a gold mining business established in Canada. It is the only owner of the Dublin Gulch property, which includes the Eagle Gold Mine, in the center of Yukon. With a reserve of 2.7 million ounces of gold as of December 31, 2021, the Eagle Gold Mine is anticipated to produce 165,000 ounces of the gold year 2022. The ticker VITFF is used for OTC trading of Victoria Gold shares in the United States. Victoria Gold released its financial Q2 2022 results on August 12. Revenue increased by 9.2% YOY, while net income increased by more than 13 times. A factor affecting performance was a higher average realized price.
Best-Performing Gold Stocks (NYSE:GOLD)
These are the best gold stocks according to a growth model that weights quarterly YOY earnings-per-share (EPS) growth and quarterly YOY percentage sales growth equally when rating firms. The success of a corporation depends on both sales and profits. Due to this, evaluating businesses based on just one growth indicator leaves rankings open to accounting irregularities of the quarter (such as changes in tax legislation or restructuring charges), which might render one or both figures unrepresentative of the firm as a whole. As outliers, businesses with quarterly EPS or sales growth of greater than 2,500% were disqualified.
K92 Mining Inc.: K92 mining is a gold mining firm established in Canada. In Papua New Guinea, it manages the Kainantu Gold Mine. Additionally, 11 drill rigs owned by the business are used in exploratory operations in diverse areas. Shares of K92 are traded OTC in the U.S. under the symbol KNTNF. K92 announced on September 11 that it had been included in the TSX30 for 2022 on the Toronto Stock Exchange. The TSX30 program honors the 30 best-performing TSX stocks over a three-year period based on dividend-adjusted share price growth.
Yamana Gold Inc.: Yamana Gold is a producer of precious metals with headquarters in Canada. Properties that produce gold and silver are included in its portfolio from Canada, Brazil, Chile, and Argentina. It generated more than a million ounces of gold equivalent in 2021. For the year, silver production made up 12% of the company’s total output, while gold equivalent production made up 88%. Yamana Gold said on May 31 that Gold Fields Ltd. (GFI) would purchase Yamana. The $6.7 billion transaction is anticipated to finalize in the second part of 2022.
Osisko Mining Inc.: Based in Canada, Osisko Mining is a mineral exploration business that buys, explores, and develops gold-bearing assets there. Osisko is the owner of a number of mining assets, including a 100% stake in the Quebecian Windfall gold mine. Additionally, Osisko shares are traded OTC in the U.S. under the symbol OBNNF. In mid-September, the business stated that Windfall’s drill program had shown a “further potential increase of the resource base.”
Sandstorm Gold Ltd.: Refer to the business profile above. Note that this listing is for Sandstorm Gold shares that are listed on the Canadian exchange.
Alamos Gold Inc.: Alamos Gold is a gold producer with operations in Canada. It manages three mines in Mexico and Canada. In addition, it has ongoing projects in the United States, Turkey, Canada, and Mexico. The firm has around 1,700 employees. The ticker symbol for Alamos Gold in the United States is AGI.
United States Dollar’s Effect on Gold Stocks (NYSE:GOLD)
Since the advent of the gold standard in the 1880s, when paper money was firmly connected to a particular quantity of yellow metal, the U.S. dollar, or Greenback, has had a long-standing tie with the precious metal. The Greenback still strongly corresponds with gold—and consequently gold stocks—despite the previous president Franklin D. Roosevelt’s removal of the gold standard in 1933. This is because gold is valued in U.S. dollars.
A strong U.S. dollar often results in lower gold prices as demand from customers using other currencies declines. In contrast, as the value of the dollar declines, demand rises, and gold becomes more affordable for buyers from outside. Despite their frequent adverse correlation, the U.S. dollar and gold are capable of moving in the same direction. For instance, both assets may increase if investors seek safe-haven investments during times of global unrest. Gold is viewed as a hedge against inflation due to its limited supply, whereas the dollar is sought during periods of risk aversion due to its position as the world’s reserve currency.
Benefits of Including Gold Stocks (NYSE:GOLD) in Your Investment Portfolio
Holding gold stocks has two major benefits: leveraged upside and liquidity.
Leveraged Upside and Diversification: By purchasing gold stocks, investors may effectively make a leveraged wager on the price of the yellow metal. When gold prices climb, miners can boost productivity and raise their sales.
A “risk-on” equity portfolio benefits from the sector’s ability to partially hedge against inflation because gold stocks closely track the price of the metal.
Large discoveries of gold can raise the price of gold mining stocks dramatically, especially if a junior miner has a tiny market capitalization. For instance, the May 2021 announcement by the Canadian junior explorer Enduro Metals Corporation (ENDMF) of gold intersecting in one of its mines. Shares of the $32.43 million miner subsequently increased by more than a factor of two during the ensuing several months.
Featured Image: Depositphotos © Iurii
Author Valerie Remorosa 
