Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
Trump tariffs and trade wars have been the headlines in the financial markets recently, and even though the U.S. and Canada reached an agreement to delay the implementation of tariffs for 30 days, uncertainty surrounding Trump’s tariffs on China and even the European Union remains. Therefore, investors still need to allocate safe-haven assets in the portfolios to hedge against inflation and potential stock market pullback risks.
With the price of gold hitting new all-time highs again after a strong 2024 performance, both retail investors and analysts are optimistic about the outlook. Here are two different ways to invest betting on higher gold prices in 2025.
A solid mining company like Agnico Eagle Mines (TSX:AEM) may be a better choice if one wants to gain in a market pullback rather than dampening potential declines. Gold mining stocks are more volatile and risky than physical gold. However, as one of the best miners, investors who own the stock will get better returns from this gold stock if the price of gold continues to rise this year.
Shares of Agnico Eagle Mines are currently trading at C$138, with a dividend yield of 1.7% and a price-to-earnings ratio of 17.3x. That’s a cheap valuation for a stock that has soared more than 114% in the past year. As long as the price of gold stays near all-time highs, owning Agnico Eagle Mines means more yield and passive income.
Sprott Physical Gold Trust (TSX:PHYS) is a closed-end fund (CEF) that is currently trading about 1.5% below its net asset value (NAV). For a closed-end fund, such a low discount could also lead to significant price volatility. Being able to buy physical gold at a discount before the trade war has really started is a smart move.
In the longer term, gold will always be a worthwhile safe-haven asset for investors, especially if tariff negotiations escalate and the economy begins to feel the pressure of tariff-related price increases. In any case, it pays to bet on rising physical gold prices by holding the Sprott Physical Gold Trust. For Canadian investors, this exchange-traded fund has a management fee of about 0.41 per cent, a relatively affordable level.
