5 Best Gold Stocks to Buy in 2021

In this article we discuss the 5 best gold stocks to buy in 2021. If you want to read our detailed analysis of the gold mining industry, go directly to the 10 Best Gold Stocks to Buy in 2021.

5. Barrick Gold Corporation (NYSE: GOLD)

No. of Hedge Fund Holders: 22

This is a gold mining company that also deals with the development of gold mines, as well as selling precious metal. It also deals with copper production and has investments in the Canadian oil and gas industry. First Eagle Investment Management, held by Jean-Marie Eveillard was its largest hedge fund investor with more than 26.8 million shares.

• Barrick Gold recently signed an agreement that would allow Papua New Guinea to have majority shareholding in Porgera gold mine, scheduled to resume operations.
• PNG stakeholders will own 51% of the Porgera mine, while Barrick Niugini Ltd will own the remaining stake.
• James Marape, the Prime Minister of Papua New Guinea, revealed that the deal will help set the pace for other projects in the region.
• Barrick’s weak stock price performance has been viewed as a strong buy opportunity for investors, especially considering the new deal.

Here is what GoodHaven Capital Management has to say about Barrick Gold Corporation in their Q4 2020 investor letter:

“Barrick’s recent results have been consistent with our expectations. Barrick has begun inching up the dividend as planned, which should continue increasing absent them finding a large acquisition (they want more copper assets) or a materially lower price of gold. We’d also expect periodic special dividends during stronger gold price environments. At current gold prices we estimate normalized free cash flow at Barrick of over $1.60/share. The company is now about net-debt free. We see plenty of upside and absent a collapse in gold not too much downside. Missing from much of the public discussions about gold, but potentially interesting, is the supply/demand backdrop. As the Wall Street Journal (8/16/20) recently said “gold is amongst the rarest metals in the earth’s crust and much of the easier to get to ore has already been mined. What is left is harder to find and more expensive to extract…” According to the World Platinum Council, it was forecasted that there will be a supply and demand imbalance of 1.2 million ounces globally. The potential macro tailwinds that could add value to an alternate currency like gold including currency concerns, excessive debt and continuing negative real interest rates are still out there. While the shares performed well for the year they were weak in the second half and now stand more attractively priced.”