Published on 20 Feb 2024 on Insider Monkey via Yahoo Finance
12 Best Gold Mining Companies to Invest In According to Analysts
In this piece, we will take a look at the 12 best gold mining stocks to buy according to analysts. If you want to skip our overview of the latest trends in the world of gold and minerals, then you can take a look at the 5 Best Gold Mining Companies to Invest In According to Analysts.
Gold serves as a safe-haven investment, sought by investors to mitigate risks associated with factors like inflation, geopolitical tensions, and financial instability. These variables often contribute to gold price volatility, as witnessed in 2022 and early 2023. Gold surged to over $2,000 per ounce during this period due to concerns regarding inflation and geopolitical uncertainties. However, the market experienced significant price fluctuations as investors evaluated the possibility of a recession against the backdrop of increasing interest rates, inflation, and other dynamics.
A Bloomberg report released earlier in 2023 unveiled a notable trend among global sovereign wealth funds and investors toward accumulating gold. Invesco's analysis was based on a survey encompassing 85 sovereign wealth funds and 57 central banks, collectively managing assets totaling around $21 trillion. The report underscored the sentiment surrounding gold, noting that "a significant portion of central banks express concerns about the precedent set by the US freezing of Russian reserves, with the majority (58%) agreeing that this event has heightened the appeal of gold." The survey findings underscored gold's enduring role as an inflation hedge, with a considerable number of central banks indicating intentions to bolster their gold reserves over the next three years.