| Best Gold Stocks for June 2024 | |||||
|---|---|---|---|---|---|
| Ticker | Company | Market Cap ($B) | Price ($) | 30-Day Return (%) | P/E Ratio |
| FCX | Freeport-McMoRan Inc. | 76.5 | 53.22 | 6.6 | 46.78 |
| RGLD | Royal Gold Inc. | 8.6 | 130.51 | 4.4 | 38.52 |
| NEM | Newmont Corp. | 48.5 | 42.08 | -2.7 | N/A |
| SSRM | SSR Mining Inc. | 1.1 | 5.34 | -4.3 | N/A |
What to Know About Investing in Gold
As of late May 2024, the price of gold was just below its all-time record high of nearly $2,500 per ounce. The price has been driven ever higher in the last year due to a combination of renewed interest in investing broadly, a surge in excitement about the precious metal itself, and concerns about the ongoing impact of inflation, among other factors.
With the price of gold at all-time highs, investors may be wondering if it still pays to invest in the precious metal. Of course, there is no guarantee that the price of gold will drop from these highs, and investors can still protect against inflation while holding the metal even at high prices. Another way to target gold indirectly, for those who may be concerned about the price of the metal itself, is by looking at companies involved in its production.
How We Chose the Best Gold Stocks
We looked specifically at gold mining companies trading on the New York Stock Exchange or the Nasdaq as we completed our ranking. To ensure that our list included established firms, we excluded those with stock prices under $5, or with a daily trading volume of under 100,000, or with a market capitalization of less than $300 million. We then ranked the remaining gold mining companies based on highest 30-day return.
Note that two of the companies in this list do not have P/E ratios listed. These two firms had net losses during the period in question, meaning that a P/E ratio calculation is impossible.
Gold Advantages and Disadvantages
Investing in gold mining companies provides some important benefits and drawbacks. Advantages of these companies include their potential as a leveraged play on gold; when the price of gold rises, the price of gold mining companies may rise at an even faster rate due to their important role in the production of gold for bullion and jewelry investments. Similarly, as gold prices rise, so too do the profits of these companies, giving an opportunity for them to reap substantial capital gains. Additionally, gold stocks tend to be much more liquid than physical gold investments, making them ideal for investors who may wish to adjust their exposure over time. Finally, gold companies do not require investors to pay storage and transport fees, typically necessary when buying or selling physical gold.
On the other hand, gold mining companies have some risks for investors as well. Many of these companies conduct operations in a number of other areas as well, making them not pure-play gold investments. Along with this, many gold miners operate in a number of different locations around the world. They are thus exposed to a range of different regulations. This can be difficult for investors to keep tabs on. Finally, there is no guarantee that if the price of gold rises, the price of the stocks of these companies will also rise.
While the stocks listed above are at the top of our list for this month, it’s important to note that past performance is not a guarantee of future returns.
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As of the date this article was written, the author does not own any of the securities listed above.