In this article, we will discuss the 11 Best Mineral Stocks to Buy According to Hedge Funds.
In response to China’s dominance in the rare earth magnet supply chain, the U.S. government is increasing its emphasis on boosting domestic critical mineral production. This is evident from The Pentagon’s immediate action, securing a direct equity stake in MP Materials, which owns and operates the Mountain Pass mine, the only rare earth mine and processing facility in the country. This acquisition makes the U.S. government the largest shareholder. Furthermore, they are seeking other U.S. mining companies to explore more acquisition opportunities, aiming to reduce reliance on foreign sources of critical minerals. These critical minerals are essential for the country’s defense and technology sectors.
Shifting to the broader minerals markets, a significant policy shift in the country has led copper prices to surge, now nearing their record highs. Effective August 1, 2025, Trump announced plans to impose a 50% tariff on copper imports. Although the market hasn’t fully priced in these tariffs yet, Michael Widmer, Commodities Strategist at Bank of America, spoke to CNBC, expressing his belief that the impact will get factored in over time. He notes that these tariffs, which are expected to affect copper and copper derivative products, will cause a ripple effect across the entire supply chain, including upstream, downstream, and mid-stream companies, eventually driving increased prices for consumers. He also emphasized the need for greater smelting capacity within the U.S., which is exporting more scrap copper than it’s importing refined copper at the moment. However, developments in this regard are expected to take place in the long term, he notes.
Moving on to the gold market, on July 22, 2025, prices surged by 1.5% overnight, reaching their five-week high and surpassing $3,400 per ounce. This increase follows the drop in the U.S. dollar index to below $98, and the expected rate cut in September 2025. Meanwhile, strong investment demand has driven this surge, with ETFs experiencing record purchases in June. Following this uptick, most of the global banks and brokerages have set optimistic price targets for the second half of 2025, with Citi being the only one, expects gold to drop below $3,000 per ounce. The average consensus price target is around $3,500 per ounce, while Morgan Stanley is most bullish, setting a price target of $3,800 per ounce by Q4 2025. As of July 22, 2025, silver is also soaring, nearing its 14-year high.
With this backdrop, let’s move on to our list of the 11 Best Mineral Stocks to Buy According to Hedge Funds.
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Methodology
To curate our list of the 11 Best Mineral Stocks to Buy According to Hedge Funds, we used the Finviz screener to find companies operating in the gold, silver, iron, aluminum, coking coal, and lithium sectors. We ranked these stocks based on hedge fund sentiment, using Insider Monkey’s hedge fund database, which tracks the activity of over 1,000 hedge funds. Finally, we present the list of the 11 Best Mineral Stocks to Buy According to Hedge Funds in ascending order based on the number of hedge funds holding each stock.
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. Vale S.A. (NYSE:VALE)
Number of Hedge Funds: 37
Vale S.A. (NYSE:VALE) has attracted significant hedge fund interest, making it one of the 11 Best Mineral Stocks to Buy According to Hedge Funds.
On July 2, 2025, Barclays increased its price target on Vale S.A. (NYSE:VALE) from $12.75 to $13, maintaining an ‘Overweight’ rating. The analyst’s optimism stems from favorable market conditions for miners, marked by potential price increases for copper, stable iron ore market, and a weakening U.S. dollar.
Meanwhile, expectations of interest rate cuts beginning September 2025 further drove the analyst’s optimism. Based on CME FedWatch data, a 78% probability was set for a 25-basis-point cut in July 2025, which has yet to materialize. At the same time, with the same probability, a 75-basis-point cut is expected for the calendar year.
With its Iron Solutions segment, Vale S.A. (NYSE:VALE) is engaged in the production and sale of iron ore and iron ore pellets. Meanwhile, its Energy Transition Materials segment is engaged in the production of nickel and its by-products. It is included in our list of the Best Material Stocks.
10. Coeur Mining, Inc. (NYSE:CDE)
Number of Hedge Funds: 38
Due to strong hedge fund interest, Coeur Mining, Inc. (NYSE:CDE) is among the 11 Best Mineral Stocks to Buy According to Hedge Funds.
On July 1, 2025, Roth Capital increased its price target on Coeur Mining, Inc. (NYSE:CDE) from $10 to $12, maintaining a ‘Buy’ rating, amid favorable gold and silver prices.
The analyst forecasts that the gold price is expected to increase from the previous forecast of $3,100 to $3,294 per ounce for Q2. Meanwhile, for Q3, it is projected to increase from $2,350 to $3,300, and for Q4, Roth Capital expects it to grow from $2,300 to $3,150.
On the other hand, the analyst projects price of silver to grow from $31 to $33.22 in Q2 2025. For Q3 and Q4, respectively, the price is expected to increase from $27.65 to $35.50, and from $27.06 to $35.00 per ounce.
These price revisions come amid the strong growth momentum of gold equities, which have increased 46% on a YTD basis, while the broader market has returned a 14.54% gain. Meanwhile, Coeur Mining, Inc. (NYSE:CDE) has seen its share price gain 65.12% and 46.43% on a YTD and 1-year basis.
Operating sites in Palmarejo, Rochester, Kensington, Wharf, Silvertip, and Las Chispas, Coeur Mining, Inc. (NYSE:CDE) produces gold and silver while also exploring for silver, zinc, lead, and other related metals. It is included in our list of the Best Material Stocks.
9. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Funds: 39
Kinross Gold Corporation (NYSE:KGC) has attracted significant hedge fund interest, making it one of the 11 Best Mineral Stocks to Buy According to Hedge Funds.
On July 15, 2025, CIBC increased its price target on Kinross Gold Corporation (NYSE:KGC) from $16 to $21, maintaining an ‘Outperform’ rating. This follows a bullish rating issued earlier by Jefferies. The company’s strong financial health is cited, with expectations of healthy free cash flow in the current year and the upcoming year, having reduced its net debt significantly to $540 million.
Kinross Gold Corporation (NYSE:KGC) expects a stable gold production, with plans to reach 2 million ounces, generating increased value for it. This optimism flows into analysts’ revised estimates that project 11% and 16.5% increased growth in the company’s earnings for FY25 and FY26, respectively.
Kinross Gold Corporation (NYSE:KGC) is a gold miner, dealing in assets located in the United States, Brazil, Chile, Canada, and Mauritania. It is included in our list of the Best Material Stocks.