In this article, we discuss the 11 Best Gold Penny Stocks to Buy According to Hedge Funds (and Precious Metals Stocks).
On August 13, 2025, the gold price rose amid a weaker U.S. dollar and falling Treasury yields. Softer inflation data boosted expectations of a Federal Reserve rate cut in September, along with an additional easing later in the year. As a result, spot gold climbed 0.4% to $3,357.59 per ounce and U.S. gold futures for December delivery rose 0.3% to $3,408.50.
Gold turned more attractive for overseas buyers, thanks to the dollar index slipping to its two-week low, alongside a decline in benchmark 10-year yields. With these developments taking place, markets are now seeing a 97% chance of a September rate cut following July’s mild CPI figures and weak job data, which reinforced the Fed’s dovish outlook.
At the same time, geopolitical factors remain a concern amid the upcoming high-level talks between U.S., European, and Ukrainian leaders ahead of a meeting with Russia’s president. At the same time, the U.S. and China have extended their tariff deadline by another 90 days. Markets rallied following President Donald Trump’s announcement. Analysts believe that gold prices surging beyond $3,400 would be driven by geopolitical developments more than economic data. Meanwhile, silver climbed 1.6% to $38.48, platinum eased 0.1% to $1,335.19, and palladium rose 0.1% to $1,129.89.
With this backdrop, let’s shed light on our list of the 11 Best Gold Penny Stocks to Buy According to Hedge Funds (and Precious Metals Stocks).
A golden nugget illuminated under direct lighting, hinting at the value of precious metals.
Our Methodology
To curate our list of the 11 Best Gold Penny Stocks to Buy According to Hedge Funds (and Precious Metals Stocks), we used the Finviz screener to extract a list of gold companies trading with a share price under $5. Next, we ranked these stocks in ascending order based on the number of hedge funds holding stakes in each stock as of Q1 2025. We assessed the hedge fund sentiment using Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. Galiano Gold Inc. (NYSE:GAU)
Share Price: $1.56
Number of Hedge Fund Holders: 7
With significant hedge fund interest and a share price under $5, Galiano Gold Inc. (NYSE:GAU) secures a place on our list of the 11 Best Gold Penny Stocks to Buy According to Hedge Funds (and Precious Metals Stocks).
On July 14, 2025, Galiano Gold Inc. (NYSE:GAU) reported results from a deep step-out drilling initiative at the Abore deposit, which is a part of the Asanko Gold Mine in Ghana. Abore is located strategically along the haul road to the processing plant with 638,000 ounces in Measured and Indicated Resources.
Mineralization over a 1,200-meter strike length, extending 200 meters below the current Mineral Reserve pit shell and remaining open in all directions, was intercepted across all four holes in the 1,907-meter campaign.
The results highlight potential for bulk underground mining, posing significant expansion opportunities. Building on the Phase 1 momentum achieved in May, Galiano Gold Inc. (NYSE:GAU) has initiated a Phase 2 infill drilling program. Under this second phase, the company will further test extensions immediately below existing Mineral Reserves and Resources.
Following the results, Scotiabank reiterated its ‘Hold’ rating on Galiano Gold Inc. (NYSE:GAU) with a $2.54 price target.
Operating through its Asanko Gold Mine, Galiano Gold Inc. (NYSE:GAU) explores for and produces gold. It is included in our list of the Best Penny Stocks.
10. i-80 Gold Corp. (NYSE:IAUX)
Share Price: $0.584
Number of Hedge Fund Holders: 9
i-80 Gold Corp. (NYSE:IAUX) is one of the 11 Best Gold Penny Stocks to Buy According to Hedge Funds (and Precious Metals Stocks).
On August 13, 2025, i-80 Gold Corp. (NYSE:IAUX) reported its Q2 2025 results. The company’s revenue increased from $7.2 million a year earlier to $27.8 million, thanks to gold sales doubling to 8,400 ounces at a record $3,301 per ounce. Meanwhile, loss per share improved from $0.11 to $0.05, driven by a $13.1 million gross profit boost.
During the quarter, i-80 Gold Corp. (NYSE:IAUX) progressed with several projects. The company conducted drilling between existing drill holes at Granite Creek and Mineral Point. They also moved forward in getting permits for their Archimedes and Cove projects. IAUX also plans to complete the feasibility of Lone Tree’s autoclave upgrade by the fourth quarter of 2025. At the same time, $185.5 million has been raised since May to finance its three-phase growth plan.
Ahead of its Q2 2025 results, Scotiabank reiterated its ‘Buy’ rating on i-80 Gold Corp. (NYSE:IAUX) with a $1.45 price target, citing strong fundamentals.
i-80 Gold Corp. (NYSE:IAUX), a Nevada-based mining company, is advancing multiple gold projects toward production. It is included in our list of the Best Penny Stocks.
9. New Found Gold Corp. (NYSE:NFGC)
Share Price: $1.58
Number of Hedge Fund Holders: 9
With significant hedge fund interest and a share price under $5, New Found Gold Corp. (NYSE:NFGC) secures a place on our list of the 11 Best Gold Penny Stocks to Buy According to Hedge Funds (and Precious Metals Stocks).
On July 21, 2025, New Found Gold Corp. (NYSE:NFGC) reported a Preliminary Economic Assessment (PEA) for its Queensway Gold Project in Newfoundland and Labrador, Canada. The company holds a 100% stake in the project.
Phase 1 of the project entails a $155 million initial capital investment, which is expected to deliver 69.3 koz of gold annually at an AISC of $1,282 per ounce for the first four years. The production proceeds are then projected to fund the $442 million Phase 2 build-out to 172.2 koz/year at $1,090 per ounce for the following five years. New Found Gold Corp. (NYSE:NFGC) expects 1.5 Moz total production across the 15-year mine life, with first output expected in 2027, pending approvals.
With a gold price projected at $2,500 per ounce, after-tax NPV5% is estimated at $743 million. On the other hand, the expected gold price of $3,300 per ounce yields $1.45 billion in NPV.
Three days later, on July 24, Roth MKM reiterated its ‘Buy’ rating with a $5 target price.
New Found Gold Corp. (NYSE:NFGC), a gold mining company, holds a 100% interest in the Queensway Project in Canada. It is included in our list of the Best Penny Stocks.
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