8 Best Gold Stocks Of 2023 (2023)

The Best Gold Stocks of April 2023

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Torex Gold Resources Inc (TXG.TO)

8 Best Gold Stocks Of 2023 (1)

5-Year Forward EPS Growth Estimate

+182%

Sales Trend

7 years of rising sales

Solvency Ratio

160%

8 Best Gold Stocks Of 2023 (2)

5-Year Forward EPS Growth Estimate

+182%

Sales Trend

7 years of rising sales

Solvency Ratio

160%

Why We Picked It

Torex Gold is a Canadian company that primarily operates in Mexico. The shares trade on the Toronto Stock Exchange, and they also trade in the over-the-counter market (OTC) in the U.S. under symbol TORXF.

Over the last decade, the stock has traded in a large range between roughly $8 and as high as $35. The price is currently in the middle of the range near $18.

Torex has the highest estimated five-year EPS growth of the stocks included in this list. The company’s earnings can be erratic, yet EPS has been in an overall uptrend since 2018. Sales have been increasing since 2016 (allowing for up to a 10% drop in any given year if sales increase the next year once again).

A forward P/E ratio of 19.5 is reflective of the stock’s position within its range. P/E values have ranged between three and over 100 within the last five years. The high solvency ratio means the company has more than enough cash flow to cover its debts.

Torex has not increased its shares outstanding in the last few years. This is a favorable move, since many companies in the gold industry continue to issue shares for cash, diluting existing shareholders.

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Dundee Precious Metals Inc. (DPM.TO)

8 Best Gold Stocks Of 2023 (3)

5-Year Forward EPS Growth Estimate

+145%

Sales Trend

7 years of rising sales

Solvency Ratio

128%

8 Best Gold Stocks Of 2023 (4)

5-Year Forward EPS Growth Estimate

+145%

Sales Trend

7 years of rising sales

Solvency Ratio

128%

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Why We Picked It

Dundee Precious Metals is a Canadian mining company based in Toronto. The stock trades on the Toronto Stock Exchange, and shares also trade OTC in the U.S. under symbol DPMLF.

DPM has the second-highest EPS growth estimate on the list, after Torex. Sales had been increasing steadily every year since 2016, but dipped slightly in 2022. Like most gold miners, earnings can be erratic, fluctuating between positive and negative, although the company has posted three straight years of positive EPS.

The stock trended higher between 2018 and 2020, pulled back through much of 2021 and early 2022, and has been rallying in 2023.

Dundee pays a 2.3% dividend yield, and has increased the dividend each year since 2020.

Forward P/E is 10.0. That’s at the lower end of the five-year range which has seen P/E values fluctuate between four and 50 (above a 40 P/E has historically not been a good time to buy).

Outstanding shares have been increasing over the last several years. That isn’t ideal unless EPS remains steady or grows.

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8 Best Gold Stocks Of 2023 (6)

5-Year Forward EPS Growth Estimate

+10.6%

Sales Trend

4 years of rising sales

Solvency Ratio

32%

Why We Picked It

AngloGold Ashanti is based in Johannesburg, South Africa, and the company operates gold mines in Africa, Australia and the Americas.

AngoGold has a more modest earnings forecast than the companies above, but it also has a stronger record of increasing EPS. The company has posted positive EPS every year since 2015, while sales have been increasing overall since 2018 (slight dip in 2021 versus 2020).

AU’s share price has been largely range-bound for a decade. That said, it is one of the few gold stocks currently above its 200-day moving average. The stock has been pulling back in 2023 after a sharp rally in late 2022.

AngloGold pays a 2.4% dividend yield, but the dividend amount can vary drastically from year to year.

Current P/E is 28.7, which is moderate for the stock. P/E values have ranged between six and well over 400 during the last five years.

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DRDGold Limited (DRD)

8 Best Gold Stocks Of 2023 (7)

5-Year Forward EPS Growth Estimate

10.0%

Sales Trend

8 years of rising sales

Solvency Ratio

211%

8 Best Gold Stocks Of 2023 (8)

5-Year Forward EPS Growth Estimate

10.0%

(Video) These Are Our Top Gold Stock Picks for 2023: Paul Harris and Jeff Clark

Sales Trend

8 years of rising sales

Solvency Ratio

211%

Why We Picked It

DRDGold is another South African company that extracts and processes gold from two properties in South Africa.

The company has been steadily raising sales since 2015 with only a few minor hiccups. EPS has been positive the last four years, rising overall, but lower in 2022 vs 2021.

DRD rallied almost 900% between mid-2019 and mid-2020. It has been pulling back against that rally since. The company’s dividend yield is currently around 3.0%, but the dividend amount fluctuates each year.

The current P/E ratio is 11.2, one of the lowest readings over the last five years.

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Gold Fields Limited (GFI)

8 Best Gold Stocks Of 2023 (9)

5-Year Forward EPS Growth Estimate

+8.5%

Sales Trend

7 years of rising sales

Solvency Ratio

77%

8 Best Gold Stocks Of 2023 (10)

Why We Picked It

Gold Fields Limited is based in South Africa, and the company maintains gold mining operations in South Africa, Ghana, Australia and Peru.

Gold Fields has been a steady performer recently, increasing sales since 2016 and EPS since 2019. Analysts expect moderate yearly growth going forward.

GFI rallied through much of 2019 and 2020 and has settled into a range between $7 and $17 since then. The price is currently near the lower end of the range.

With a 3.9% dividend, it is the highest on the list, but as with many gold stocks, the payment amount varies from year to year.

GFI has a P/E ratio of 14.1 which is on the lower end of readings over the last five years. The lowest reading was just below 7.0 in late 2022.

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Franco-Nevada Corporation (FNV)

8 Best Gold Stocks Of 2023 (11)

5-Year Forward EPS Growth Estimate

+7.9%

Sales Trend

15 years of rising sales

Solvency Ratio

1,396%

8 Best Gold Stocks Of 2023 (12)

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5-Year Forward EPS Growth Estimate

+7.9%

Sales Trend

15 years of rising sales

Solvency Ratio

1,396%

Why We Picked It

Franco-Nevada Corp. is a gold streamer headquartered in Toronto, Canada. A streamer doesn’t mine gold, instead it buys contracts to sell other producer’s gold output.

FNV has increased earnings every year since 2018 and has increased sales each year for more than a decade. Analysts expect moderate annual EPS growth going forward.

Franco-Nevada is one of the few gold companies that can boast a steadily rising share price over the last decade. That said, FNV is in a range between $169 and $106 since 2020, and the price is currently in the middle of this range. For a long-term stock investment, this is one of the better choices due to the steady cash flow the company brings in and the generally rising sales, EPS and share price.

It pays a 1% dividend, and has steadily increased the dividend each year for well over a decade.

Unlike many other gold companies, FNV rarely trades at a cheap P/E. The current reading of 34.3 is one of the lowest readings in the last decade.

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SSR Mining Inc. (SSRM.TO)

8 Best Gold Stocks Of 2023 (13)

5-Year Forward EPS Growth Estimate

+3.0%

Sales Trend

Zero years of rising sales

Solvency Ratio

32%

8 Best Gold Stocks Of 2023 (14)

5-Year Forward EPS Growth Estimate

+3.0%

Sales Trend

Zero years of rising sales

Solvency Ratio

32%

Why We Picked It

SSR Mining is headquartered in Denver and mainly mines gold in the U.S., Canada and Argentina.

SSR has been posting positive earnings numbers since 2016. Sales had been seeing steady gains since 2018, but 2022 sales slipped lower year over year. Overall, the trajectory of sales and EPS is positive.

Since mid-2020, SSR’s share price has been ranging between $33 and $17, and the stock is currently near the bottom of that range. The stock trades a P/E ratio of 15.1—values from 9 to well above 30 are common, so the stock is moderately priced in that regard.

The stock pays a 2% dividend. Dividend payments commenced in 2021, and the company raised the dividend in 2022.

The stock listing in Canada (SSRM.TO) has a 3% per year EPS growth estimate over the next five years. For the listing in the U.S. (SSRM) analysts expect -27% yearly growth over the next five years. Definitely some conflicting information from analysts.

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Royal Gold, Inc. (RGLD)

8 Best Gold Stocks Of 2023 (15)

5-Year Forward EPS Growth Estimate

+1.6%

Sales Trend

9 years of rising sales

(Video) The 6 Best Gold Stocks To Buy Right Now!

Solvency Ratio

38%

8 Best Gold Stocks Of 2023 (16)

5-Year Forward EPS Growth Estimate

+1.6%

Sales Trend

9 years of rising sales

Solvency Ratio

38%

Why We Picked It

Royal Gold is a gold streamer based in Denver. Rather than mining gold, it purchases metal through contracts from miners.

Like FNV—the other gold streamer on the list—Royal Gold’s share price has risen steadily over time. It has the lowest expected annual forward earnings estimate on the list, but it has generally been a steady performer for more than a decade.

Sales have increased steadily over the last nine years, and EPS has increased since 2015 with the exception of 2018 when EPS was negative.

Since mid-2020 the stock has moved sideways between a high at $147.70 and a low at $84.54. The stock is currently near the middle of that range.

RGLD pays a 1.3% dividend and the dividend has increased every year since 2016.

The stock is trading a P/E ratio of 32.7. That’s a fair value. The lowest P/E over the last five years is 20, but P/E can easily climb well above 50 in this stock.

*All analysis and data are sourced from Trades That Swing, current as of March 13, 2023.

Methodology

Our curated list of the best gold stocks is built using strict criteria. The stocks outlined above are traded on U.S. or Canadian stock exchanges and meet the following requirements:

  • Gold revenue. All companies generate at least half of their annual revenue from gold.
  • High solvency ratios. All stocks have solvency ratios above 20%. This ratio shows our picks can meet their short-term and long-term financial obligations. Since gold companies may have large debt obligations, the solvency ratio checks to make sure they have enough cash flow to pay those obligations without running into trouble.
  • Positive EPS expectations. Analysts expect greater than 1% yearly EPS growth over the next five years. Very few gold stocks meet this simple criteria.
  • Positive and increasing sales and earnings. A demonstrated history of rising sales and earnings separates the best gold stocks from the rest.
  • Minimum stock criteria. Shares must be listed on U.S. stock exchanges, have prices of at least $5 and trade at least 200,000 shares daily.

We have included P/E ratios relative to the five-year trend as a secondary screening criterion. This provides some perspective on how each stock’s valuation looks now relative to recent history.

We also looked for companies with stable amounts of outstanding shares when possible. This was not a requirement, but it is nice to have.

Dividend yield was not a selection factor, yet all the stocks on the list but one pay a dividend. This helps show the companies have a strong enough financial position to pay a dividend.

Gold is a cyclical commodity, and companies in the industry also tend to generate cyclical results. Their profits rise when gold prices are high and decline when gold is cheap. Keep this in mind when using P/E ratios.

If you’re looking to hold gold stocks in your portfolio over the long term, you should be mindful of the industry’s volatile nature.

To learn more about our rating and review methodology and editorial process, check out our guide onHow Forbes Advisor Rates Investing Products.

Note: An experienced financial analyst selected the stocks above, but they may not be right for your portfolio. Before you purchase any of these stocks, do plenty of research to ensure they align with your financial goals and risk tolerance.

What Are Gold Stocks?

Gold stocks are public companies that extract, process, finance and trade gold. The best gold stocks on our list above are focussed on either gold mining or gold streaming.

Gold mining is the practice of extracting gold ore from the earth and processing it into gold bullion. Gold streaming is the provision of upfront financing to gold miners in exchange for the option to buy finished gold bullion at a discount in the future.

The share prices of gold stocks do not directly track the day-to-day price of gold in commodities markets, but their revenues are correlated with the gold prices. Investors who own gold stocks aim to benefit from changes in the price of gold without having to own or store physical gold themselves.

Advantages of Gold Stocks

  • You get exposure to the price of gold without having to own or store physical gold.
  • Gold stock prices may not be as volatile as the price of gold.
  • They can offer a potential hedge against inflation.

Risks of Gold Stocks

  • The price of gold tends to be inversely correlated to the U.S. dollar, so a strong dollar could hurt your investment.
  • Gold is a volatile commodity, so gold prices—and the profits of gold companies—can be unstable.
  • Companies that mine gold often operate in politically unstable countries, which could put your investment at risk.

How to Buy Gold Stocks

Investors can purchase gold stocks the same way they purchase any stock for their portfolio.

First, research gold companies and decide how much money you intend to invest in gold stocks. After doing your due diligence, log into your brokerage account.

From your brokerage account, choose the stock you want to buy, the price at which you want to purchase it and how many shares of the stock you wish to own. Once you have decided on these factors, you can purchase the stock. It will join the other investments in your portfolio.

As with any investment, however, it’s always recommended to consult with a financial advisor before making any final decision.

Which Is Better: Owning Gold or Gold Stocks?

Whether you choose to buy physical gold or gold stocks depends upon your own goals and requirements.

If you have the space to store gold and want to own a tangible asset, physical gold may be the better choice. However, if you’re simply looking to profit from changes in gold prices, gold stocks may be a better option.

Both physical gold and gold stocks have their own advantages and disadvantages. It’s usually recommended to consult a financial advisor before making any financial decision.

Gold Stock Frequently Asked Questions (FAQs)

What is the best gold stock to buy?

The best gold stock depends on your personal investing goals. Forbes Advisor has provided this list of what we believe to be the seven best gold stocks to own right now. However, each individual investor needs to examine their own investing approach and risk tolerance before deciding which is the best gold stock for them.

If you’re serious about purchasing gold stocks, discuss your ideas and strategy with a financial advisor.

When should you buy gold stocks?

The goal of purchasing any stock is to buy low and sell high. However, timing the market can be a difficult task. Do your due diligence, consult with a financial advisor and decide when the time is right for you to purchase gold stocks.

Are gold stocks a good investment?

Every investment has advantages and disadvantages—gold stocks are no different. It’s recommended that investors interested in purchasing gold stocks do their own due diligence and consult with a financial advisor before making a decision.

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Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

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Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

FAQs

8 Best Gold Stocks Of 2023? ›

Some experts say today's high gold prices will continue rising as inflation persists and the economy remains uncertain. For investors looking to take advantage of the ability to diversify with an asset like gold (which may perform well while others in their portfolio fall) now could be a good time.

Is investing in gold a good idea in 2023? ›

Some experts say today's high gold prices will continue rising as inflation persists and the economy remains uncertain. For investors looking to take advantage of the ability to diversify with an asset like gold (which may perform well while others in their portfolio fall) now could be a good time.

What is the best gold stocks to invest in? ›

So buying gold stocks is a great way for individual investors to get the exposure they need in their portfolios.
...
The Best Gold Stocks of May 2023.
Company (Ticker)Market Cap
Gold Fields (GFI)$14 billion
Royal Gold (RGLD)$8.8 billion
Franco Nevada (FNV)$30 billion
SSR Mining (SSRM.TO)$3.0 billion
4 more rows
May 1, 2023

What's the highest gold stock has been? ›

Barrick Gold - 38 Year Stock Price History | GOLD

Historical daily share price chart and data for Barrick Gold since 1985 adjusted for splits. The latest closing stock price for Barrick Gold as of May 12, 2023 is 19.18. The all-time high Barrick Gold stock closing price was 46.23 on April 21, 2011.

What is the prediction for gold mining stocks? ›

Stock Price Forecast

The 3 analysts offering 12-month price forecasts for GoldMining Inc have a median target of 3.17, with a high estimate of 3.67 and a low estimate of 1.84. The median estimate represents a +198.11% increase from the last price of 1.07.

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