After Trump won the presidential election, the stock market was strong, with higher-risk, higher-return investments soaring, while risk-averse and hedging investments lost momentum, at least on a relative basis. As a result, precious metals investors seemed to take a step back.
Nonetheless, any recent weakness in gold should be viewed more as a buying opportunity rather than a signal to abandon safe-haven assets in favor of high-growth stocks. While it’s unclear whether gold prices will face more short-term pain, various risks may support a rebound in gold prices to new highs in the coming years. Factors such as geopolitical risks and the untimely return of high inflation could pave the way for further increases in gold prices. Instead of investing in physical gold bars or tracking gold prices through exchange-traded funds (ETFs), well-managed gold mining companies may offer greater value. For investors looking for a more affordable way to re-enter the gold market, the following gold mining stocks are worth considering.
First, there is the gold mining stock Agnico Eagle Mines (TSX: AEM), which has seen significant buying from investors this year. As the stock price approaches historical highs, one can’t help but wonder whether this top gold mining company still holds value. So far this year, the company’s stock price has risen nearly 59%. If you believe that gold prices will rise in the new year, buying this stock could be wise. The stock offers a dividend yield of 1.84% and a price-to-earnings ratio of 16.9, making it a low-cost entry into one of the best gold mining companies in the industry.
If you are seeking greater value, Barrick Gold (GOLD) might be worth a look. This stock has recently pulled back nearly 16% from its 52-week high near $29. Although Barrick Gold’s stock is still down nearly 36% from its peak in 2020, it has potential for an uptick, especially if gold prices continue to rise slightly in 2025.
With an expected price-to-earnings ratio of 9.7 and a generous dividend yield of 2.17%, Barrick Gold may be a top value stock worth considering for purchase. Recently, analysts have been consistently downgrading Barrick Gold’s stock rating, partly due to high costs and moderate output from some of its mines (such as those in Nevada). However, some analysts believe that this negative sentiment is exaggerated.
