11 Best Gold Stocks For Inflation

Published on February 6, 2024 at 2:10 pm by Sheryar Siddiq in Hedge Funds, News

Gold stands as one of the oldest investment assets in history, with opinions about its value varying among investors. Nevertheless, its unique role in markets as a store of value sets it apart from nearly all other assets. Acting as a safe-haven metal, gold offers a hedge against geopolitical instability and financial turbulence, providing investors with a secure asset to protect their purchasing power and guard against currency devaluation, such as that of the US dollar. Like any commodity, gold’s price is influenced by the dynamics of supply and demand. However, its utility extends beyond being a mere store of value or investment. A significant portion of gold demand arises from its use in jewelry and various industrial applications, including electronics and medical devices. Consequently, fluctuations in the growth or contraction of these sectors inevitably impact the demand for gold.

According to a Bloomberg report earlier in 2023, information provided by Invesco revealed a trend of global sovereign wealth funds and investors accumulating gold. Invesco’s findings were based on a survey of 85 sovereign wealth funds and 57 central banks, collectively managing around $21 trillion in assets. Regarding gold, the report highlighted that “a significant portion of central banks express apprehension about the precedent established by the US freezing of Russian reserves, with the majority (58%) concurring that this incident has heightened the attractiveness of gold.” The survey results emphasized that gold continues to serve as an inflation hedge, with a notable proportion of central banks intending to increase their gold holdings over the next three years.

In addition, Netherlands-based ING Group stated in a report that the upward trend in gold prices observed in 2023 due to geopolitical tensions and uncertainties is anticipated to persist in 2024. The report notes that gold prices surged following the outbreak of conflict in Israel earlier in the year. Despite tensions easing in the Middle East, gold prices remain high. ING Group predicts that the Federal Reserve will commence reducing interest rates in May 2024, with a total expected reduction of 150 basis points throughout the year, and an additional 100 basis points in early 2025. According to ING, these rate cuts are projected to bolster gold prices in 2024.

With that in mind, today we will explore some of the best gold stocks for inflation, with prominent choices including Newmont Corporation (NYSE:NEM), Barrick Gold Corp (NYSE:GOLD), and Agnico Eagle Mines Limited (NYSE:AEM).

A closeup view of a large gold mine, illustrating the company’s gold properties.

Our Methodology

For our list of the best gold stocks for inflation, we scanned Insider Monkey’s database of 910 hedge funds and picked 11 dividend-paying gold stocks with the highest number of hedge fund investors. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

11. Sibanye Stillwater Ltd (NYSE:SBSW)

Number of Hedge Fund Investors: 16

Dividend Percentage as of February 2: 8.12%

Sibanye Stillwater Limited (NYSE:SBSW) stands as a multinational mining and metals processing Group, boasting a diverse portfolio of mining and processing operations, projects, and investments spanning five continents. Renowned as one of the world’s foremost primary producers of platinum, palladium, and rhodium, it also holds a prominent position as a top-tier gold producer. In addition to these accomplishments, the company is a significant producer of other platinum group metals (PGMs) like iridium and ruthenium. Furthermore, it extracts chrome, copper, and nickel as valuable by-products of its operations.

On November 9, Sibanye Stillwater Limited (NYSE:SBSW) made headlines by announcing its agreement to acquire US metals recycler Reldan for $211 million. Reldan, headquartered in Pennsylvania, is renowned for its recycling operations, particularly in re-processing various waste streams, including industrial waste.

Among the hedge funds monitored by Insider Monkey, AQR Capital Management, headquartered in Connecticut, stands out as a key shareholder in Sibanye Stillwater Limited (NYSE:SBSW), holding 5 million shares valued at over $31 million.

One of the best gold stocks to invest in, Sibanye Stillwater Limited (NYSE:SBSW) ranks among the likes of Newmont Corporation (NYSE:NEM), Barrick Gold Corp (NYSE:GOLD), and Agnico Eagle Mines Limited (NYSE:AEM).

10. Osisko Gold Royalties Ltd (NYSE:OR)

Number of Hedge Fund Investors: 18

Dividend Percentage as of February 2: 1.20%

Osisko Gold Royalties Ltd (NYSE:OR), a Canadian company, specializes in holding royalties in gold, silver, and diamond mines, primarily through net smelter returns and streams. Additionally, the company engages in investments in mineral exploration companies through the purchase of shares.

On November 8, Osisko Gold Royalties Ltd (NYSE:OR) announced a quarterly dividend of CAD 0.06 per share. This dividend was set to be paid on January 15 to shareholders of record as of December 29. As of February 2, the stock’s dividend yield stood at 1.20%.

In the third quarter, 18 hedge funds held a stake in Osisko Gold Royalties Ltd (NYSE:OR)’s stock. Millennium Management was the most significant shareholder of the company, with 8.85 million shares worth $104.019 million.

Palm Valley Capital Management commented on Osisko Gold Royalties Ltd (NYSE:OR) in its first quarter 2023 investor letter. Here is what it said:

“We did not purchase any new holdings for the Fund during the first quarter. In January, we sold one position: Osisko Gold Royalties Ltd (NYSE:OR). Osisko reported record royalty and streaming revenues as it has steadily grown its portfolio of assets, which is skewed toward Canada—considered to be the highest quality jurisdiction for miners. The company recently deconsolidated the results of mining developer Osisko Development from its financials, clarifying Osisko Royalties’ business model for less familiar investors. Each quarter, we update the company’s NAV based on the underlying value of each of its key royalty and streaming interests, in addition to the net financial assets it holds. Osisko’s share price exceeded our estimate of NAV, so we sold the position.”

9. B2Gold Corp (NYSE:BTG)

Number of Hedge Fund Investors: 19

Dividend Percentage as of February 2: 5.88%

B2Gold Corp. (NYSE:BTG) is a Canadian company specializing in the exploration and development of gold resources. With operations spanning multiple countries, including Colombia, Mali, Namibia, the Philippines, Uzbekistan, Finland, and Canada, the company engages in exploration, development, and production activities.

In November 2023, B2Gold Corp (NYSE:BTG) released its Q3 results. The adjusted earnings per share (EPS) for the period were reported at $0.05, falling short of estimates by $0.02. However, revenue experienced a significant increase of approximately 21.7% year over year, reaching $477.89 million, exceeding estimates by $12.55 million.

A total of 19 hedge funds tracked by Insider Monkey reported having stakes in B2Gold Corp (NYSE:BTG). The biggest hedge fund stakeholder of B2Gold Corp (NYSE:BTG) was John Overdeck and David Siegel’s Two Sigma Advisors which owns a $34.3 million stake in B2Gold Corp (NYSE:BTG).

8. Pan American Silver Corp (NYSE:PAAS)

Number of Hedge Fund Investors: 22

Dividend Percentage as of February 2: 3.05%

Formerly known as Pan American Minerals Corp, Pan American Silver Corp. (NYSE:PAAS) is a diversified metals mining company involved in the exploration, development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines. Its operations span across Canada, Mexico, Peru, Argentina, and Bolivia.

On December 11, BMO Capital resumed coverage of Pan American Silver Corp. (NYSE:PAAS) with an Outperform rating and a $25 price target. The firm highlighted several positive aspects of the company, including its successful acquisitions and robust mine operations, ultimately deeming it “well-valued.”

As of September 2023 end, 11 out of the 910 hedge funds polled by Insider Monkey had invested in Pan American Silver Corp. (NYSE:PAAS). David Greenspan’s Slate Path Capital owned the biggest stake among these which was worth $76 million.

7. Royal Gold, Inc. (NASDAQ:RGLD)

Number of Hedge Fund Investors: 23

Dividend Percentage as of February 2: 1.40%

Royal Gold, Inc. (NASDAQ:RGLD) is recognized as one of the foremost precious metals streaming and royalty companies globally. The company specializes in acquiring and managing precious metal streams, royalties, and similar production-based interests.

On November 14, Royal Gold, Inc. (NASDAQ:RGLD) announced a 6.7% increase in its quarterly dividend to $0.40 per share. The dividend was payable by January 19 to shareholders of record as of January 5. As of February 2, the stock’s dividend yield stood at 1.40%.

Furthermore, on November 1, Royal Gold, Inc. (NASDAQ:RGLD) reported its Q3 non-GAAP earnings per share (EPS) of $0.76, while its revenue increased by 5.5% year-over-year (YoY) to $138.62 million. This revenue surpassed analysts’ estimates by $11.33 million.

As of the end of the third quarter of 2023, 23 hedge funds were long Royal Gold Inc (NASDAQ:RGLD). The biggest stakeholder of Royal Gold Inc (NASDAQ:RGLD) was Jean-Marie Eveillard’s First Eagle Investment Management which owns a $386 million stake in Royal Gold Inc (NASDAQ:RGLD).

6. Wheaton Precious Metals Corp (NYSE:WPM)

Number of Hedge Fund Investors: 24

Dividend Percentage as of February 2: 1.29%

Wheaton Precious Metals Corp. (NYSE:WPM) is a Canadian multinational company with a primary focus on precious metals streaming. The company holds a significant position in the production and sale of precious metals, particularly silver, with over 26 million ounces produced and more than 29 million ounces sold. These metals are typically sourced as by-products from the primary operations of other mining companies.

On December 6, Canaccord analyst Carey MacRury reaffirmed a Buy rating on Wheaton Precious Metals Corp. (NYSE:WPM) stock and increased the price target to C$74 from C$67.

A total of 24 hedge funds tracked by Insider Monkey were long Wheaton Precious Metals Corp (NYSE:WPM). The biggest stakeholder of Wheaton Precious Metals Corp (NYSE:WPM) during this period was Jean-Marie Eveillard’s First Eagle Investment Management which owns an $851 million stake in Wheaton Precious Metals Corp (NYSE:WPM).

Much like Newmont Corporation (NYSE:NEM), Barrick Gold Corp (NYSE:GOLD), and Agnico Eagle Mines Limited (NYSE:AEM), Wheaton Precious Metals Corp (NYSE:WPM) is one of the best gold stocks for inflation.

5. Franco-Nevada Corporation (NYSE:FNV)

Number of Hedge Fund Investors: 27

Dividend Percentage as of February 2: 1.37%

Franco-Nevada Corporation (NYSE:FNV), headquartered in Toronto, Ontario, Canada, is a gold-focused royalty and streaming company boasting a diversified portfolio of cash-flow-producing assets. As of February 2, the stock offered a dividend yield of 1.34%.

On December 4, BMO Capital adjusted the price target for Franco-Nevada Corporation (NYSE:FNV) to C$200 from C$214 while maintaining an Outperform rating on the shares.

According to Insider Monkey’s database, hedge fund sentiment towards Franco-Nevada Corporation (NYSE:FNV) was positive. In the third quarter of 2023, 27 funds had investments in the stock, compared to 23 funds in the previous quarter. Holding nearly 2.26 million shares valued at over $301.556 million, First Eagle Investment Management emerged as the largest stakeholder in the company.

4. Kinross Gold Corporation (NYSE:KGC)

Number of Hedge Fund Investors: 29

Dividend Percentage as of February 2: 2.22%

Kinross Gold Corporation (NYSE: KGC) is a Canadian mining company specializing in gold and silver, founded in 1993 and headquartered in Toronto, Ontario, Canada. Currently, Kinross operates six active gold mines. The company has showcased robust financial performance in recent quarters, consistently exceeding analyst earnings per share estimates.

According to Insider Monkey’s Q3 2023 database, 29 out of 910 hedge funds had investments in Kinross Gold Corporation (NYSE: KGC). Jim Simons’ Renaissance Technologies emerged as the largest shareholder, holding shares valued at $128 million.

3. Barrick Gold Corp (NYSE:GOLD)

Number of Hedge Fund Investors: 36

Dividend Percentage as of February 2: 2.64%

Barrick Gold Corporation (NYSE:GOLD), headquartered in Toronto, Ontario, Canada, is a prominent mining company specializing in gold and copper production. With operations spanning across 16 sites in 13 countries, the company maintains a global presence.

In the third quarter of 2023, Barrick Gold Corporation (NYSE:GOLD) reported net earnings of $368 million, accompanied by an increase in gold production to 32.4 tons, compared to 31.5 tons in Q3 2022. Additionally, the company completed the acquisition of 7 million warrants to acquire additional shares in Hercules Silver Corp. (TSXV:BIG) on November 10, 2023, for approximately $4.76 million.

Insider Monkey’s database reflected positive hedge fund sentiment towards Barrick Gold Corporation (NYSE:GOLD)’s stock. In the third quarter of 2023, the number of hedge funds bullish on the stock increased to 36, up from 32 in the previous quarter. Ken Griffin’s Citadel Investment Group was among the top stakeholders in the company.

2. Agnico Eagle Mines Ltd (NYSE:AEM)

Number of Hedge Fund Investors: 38

Dividend Percentage as of February 2: 3.37%

Agnico Eagle Mines Limited (NYSE:AEM), a Canadian gold producer, operates mines in Canada, Finland, Australia, and Mexico, with additional exploration and development activities in the United States. The company maintains full exposure to elevated gold prices by refraining from forward gold sales. Analysts have rated the firm’s shares as Strong Buy on average, with an average share price target of $50, indicating an upside potential of $15.

Insider Monkey analyzed the shareholdings of 910 hedge fund portfolios during the September quarter of 2023 and identified 38 funds that acquired and held shares of Agnico Eagle Mines Limited (NYSE:AEM). The largest shareholder among these was First Eagle Investment Management, managed by Jean-Marie Eveillard, with an investment valued at $283 million.

1. Newmont Corporation (NYSE:NEM)

Number of Hedge Fund Investors: 49

Dividend Percentage as of February 2: 4.80%

Headquartered in Greenwood Village, Colorado, Newmont Corporation (NYSE:NEM) ranks among the largest global gold mining companies, tracing its roots back to 1921. The corporation owns and operates gold mines situated in various regions, including Nevada, Colorado, Ontario, Quebec, Mexico, the Dominican Republic, Australia, Ghana, Argentina, Peru, and Suriname.

Recently, Newmont Corporation (NYSE:NEM) unveiled plans to generate $2 billion in cash through the sale of mines and divestment of projects subsequent to its acquisition of Australia’s Newcrest Mining. The completion of this approximately $15 billion deal on November 6 elevated the company’s valuation to around $50 billion, incorporating five active mines and two advanced projects into Newmont’s portfolio.

As of the third quarter of 2023, Insider Monkey’s analysis of shareholdings revealed that 49 out of 910 hedge funds had acquired shares of Newmont Corporation (NYSE:NEM). Among these investors, First Eagle Investment Management, under the leadership of Jean-Marie Eveillard, emerged as the most substantial shareholder, holding 18.28 million shares valued at $675.48 million.