What are the biggest gold mining companies in the world? Although gold the commodity hasn’t done well over the last two quarters, there are still reasons to own it in a diversified portfolio. Up to this point, gold has been negatively affected due to the strong dollar, which has lowered the value of gold in dollar terms. The commodity has also been dinged due to the perception that interest rates will increase faster given President Trump’s policies. The President has favored more infrastructure spending as well as tax cuts, both of which might increase inflation from its current low level.
There is potential for inflation to increase faster than the target 2-3% range, however, and if that happens, investors could rotate some capital into gold as a safe haven. Similarly, if Trump follows through with his tough stance on China in terms of Taiwan and the South China Sea, times could be more uncertain and investors could buy gold. Lastly, Trump himself isn’t necessarily a big fan of the strong dollar (which hurts exports), and a weaker dollar could benefit gold as well.
While gold isn’t a particularly productive asset that pays a dividend or a coupon, many investors believe the commodity does offer value if an investor limits his/her allocation to a certain small percentage of the overall pie. Gold diversifies the portfolio, and it has historically offered security in times of great uncertainty. If gold the commodity does well, many investors believe the stock prices of gold miners could potentially do well as well, at least in the short term.
With that said, let’s take a look at the 10 biggest gold mining companies in the world, ranked in terms of annual gold production according to the Thomson Reuters GFMS gold survey for 2015. To put the numbers into perspective, the total amount of gold production in the world amounted to around 3,158 metric tons for that year. That’s an increase of less than one percent versus that for 2014. Some of the companies on the list include NYSE listed stocks such as Goldcorp Inc. (USA) (NYSE:GG), Barrick Gold Corporation (USA) (NYSE:ABX), Gold Fields Limited (ADR) (NYSE:GFI), Newmont Mining Corp (NYSE:NEM), and AngloGold Ashanti Limited (ADR) (NYSE:AU). For those of you interested, also check out the article, 10 Countries that Export the Most Gold in the World.