Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions achieve financial freedom through our website, podcasts, books, newspaper columns, radio programs and premium investment services. Fundamentally, one of the factors that support NEM as a long-term bet among the best gold stocks to buy is that it is not just based on precious metals. Newmont mines a significant amount of copper every year, an already important product that is becoming even more important. For example, copper plays an important role in the manufacture of electric vehicles.
Another factor for NEM to consider is its potential for passive income. Currently, the company has a future performance of 3.67%, while the average performance in the materials sector is 2.82%. In addition, many analysts consider AEM to be one of the best gold mining stocks to buy because of its strong financial situation. The company has strong strengths in its balance sheet and, best of all, it offers an attractive profitability picture.
For example, its return on equity (ROE) is almost 6.5%, while the sector's median has currently fallen into negative territory. Today, Gold Fields has a wide reach in terms of its mining operations. In addition to its domestic market, its presence extends to the Americas, Australia and West Africa. Like other major names among the best gold stocks to buy, GFI enjoys a strong financial position.
While it's true that your balance sheet could use some work, the company scores highly compared to profitability metrics. For example, its operating margin of 37.4% is well above the industry median of 6.9%. In addition, its ROE is 20.5%, which again compares favorably with that of the industry, since the sector's median is in negative territory. In general terms, royalty and streaming companies tend to be more stable than pure mining companies, which is why FNV ranks high among the best gold stocks to buy now.
In fact, the company has several excellent components within its finances. It should be noted that Franco-Nevada has no debts and scores incredibly well in terms of profitability indicators. Of course, given that the OCANF is listed in what many analysts consider penny stock territory, extreme vigilance must be exercised. Even so, there is a reason why the Sprott Junior Gold Miners ETF has OceanaGold in its shares.
Mostly, I think it has to do with their surprisingly strong financial profile. The company combines strong strengths in its books and presents a favorable profitability picture. They are well positioned to benefit from rising gold prices without taking on the risks associated with physically mining gold. Therefore, buying gold stocks is a great way for individual investors to gain the exposure they need in their portfolios.
Investors buy gold to protect themselves against risks such as rising inflation, geopolitical events and financial crises, which can cause the price of gold to be volatile. The gold ETF allows investors to easily own a diverse and high-quality group of large-scale gold companies. One of the reasons streaming companies are often among the best gold stocks to buy is because they promote predictable costs for investors. Impulse investing is a factor-based investment strategy that involves investing in stocks whose price has risen faster than the market as a whole.
A gold ETF offers extensive exposure to the sector by owning shares in gold or physical gold mining companies. Regardless of what you think of gold, analysts agree that gold stocks can play an important role in a diversified investment portfolio. The ETF also has a reasonable expense ratio of 0.51%, making it a relatively profitable way to invest in many gold stocks. Interestingly, Agnico stands out from the other best gold mining stocks to buy because of its long-standing policy of not selling any of its future gold production in the future in the future.
Gold stocks represented by an exchange-traded fund (ETF), the VanEck Gold Miners ETF (GDX), underperformed the overall market over the past year. While it may be strange to start with a list of the best gold stocks to buy now with one caveat, investors should know that the precious metals narrative is extremely risky. Buying gold stocks instead of physical metal has many benefits to take advantage of the advantages of investing in gold. To see the last two ideas on this list of the best gold stocks to buy, I'm going to focus on the speculative side of the spectrum.
Although the company barely makes the list of the top 10 gold miners, its fundamentals and decent gold production make it an attractive option. . .