Published on 24 Mar 2024 on Insider Monkey via Yahoo Finance
13 Most Profitable Gold Stocks To Invest In
In this article, we discuss the 13 most profitable gold stocks to invest in. To skip the detailed analysis of the industry, go directly to the 5 Most Profitable Gold Stocks To Invest In.
The close of 2023 saw a surge in gold prices driven by the widespread belief that the precious metal serves as a hedge against inflation, prompting investors to seek refuge amid economic uncertainty. That same year, gold prices experienced a notable surge of over 13%, coinciding with a 3% increase in demand for the yellow metal compared to the previous year, reaching 4,899 metric tons. This data, sourced from the World Gold Council, encompasses purchases made by central banks as well as demand from various sectors including industries, jewelry makers, and investors. The SVB crash and conflicts in the Middle East have further heightened demand for the precious metal throughout the year, consequently leading gold stocks to achieve significant gains. According to a Bloomberg report from earlier in 2023, data from Invesco indicated a notable trend of global sovereign wealth funds and investors increasing their gold holdings. The insights from the report were based on a survey encompassing 85 sovereign wealth funds and 57 central banks, managing assets totaling approximately $21 trillion.
Exchange-traded funds (ETFs) that mirror the price of gold also recorded strong performances. The SPDR Gold Shares ETF (NYSE:GLD) saw a gain of 6.06% year-to-date, while the iShares Gold Trust ETF (NYSE:IAU) climbed 4.6%. Many analysts describe the investment environment supporting gold's recent performance as a Goldilocks scenario, characterized by "just right" conditions. Bill Baruch, president of commodities brokerage firm Blue Line Futures, suggesting that gold's movement signals the beginning of a "multi-year bull market in metals." This statement is supported by VanEck's report that illustrated the direct correlation between gold prices and gold stocks.