5 Best Gold and Silver Stocks Hedge Fund Investors Are Loving Right Now

Published on: Feb 24, 2024
Author: Caroline Kong

Gold prices have encountered some resistance recently due to the possibility that the Federal Reserve may lower interest rates later than expected. However, for long-term investors who are bullish on gold prices, this provides just the great opportunity to buy gold or gold stocks at low prices.

According to a report by the World Gold Council, gold consumption will grow by about 3% to 4899 tonnes in 2023, driven by large-scale central bank purchases and demand in the OTC market. In China, gold has become a popular investment option due to falling property prices and fewer other investment options. And China’s huge demand for gold has become an important catalyst for the precious metal.

Moreover, unlike gold prices which are now near all-time highs, many high-quality gold stocks are still struggling at low levels right now due to sluggish investor sentiment. For reference, here are the five gold stocks with shares under $25 and are attracting the most hedge fund investors.

  1. Barrick Gold Corp (NYSE:GOLD)

As one of the world’s top gold producers, Barrick Gold Corp (NYSE:GOLD) is the most popular gold stock among hedge funds. As of the end of the third quarter of 2023, 36 hedge funds out of 910 funds tracked by Insider Monkey owned shares of Barrick Gold Corp. In fact, Barrick Gold’s stock price nearly halved after hitting an all-time high in 2020. The company recently announced a new $1 billion share buyback programme after reporting mixed Q4 2023 earnings.

  1. Kinross Gold Corporation (NYSE:KGC)

Canada-based gold and silver mining company Kinross Gold Corporation (NYSE:KGC) ranks second among the best gold stocks with a share price under $25. Of the 910 funds tracked by Insider Monkey, 29 hedge funds own shares of Kinross Gold. The largest holding is Dmitry Balyasny’s Balyasny Asset Management, with a total of $30.2 million worth of Kinross Gold shares.

  1. Alamos Gold Inc (NYSE:AGI)

Shares of Canada-based Alamos Gold Inc (NYSE:AGI) are up 17% over the past year. Of the 910 funds tracked in Insider Monkey’s hedge fund database, a total of 23 hedge funds own shares of Alamos Gold. The most notable of these is Jean-Marie Eveillard’s First Eagle Investment Management, with a total of $108 million in Alamos Gold.

  1. Pan American Silver Corp (NYSE:PAAS)

Pan American Silver Corp (NYSE:PAAS) has a dividend yield of about 3%, which is not ordinary among gold stocks. As of the end of the third quarter of 2023, 22 hedge funds out of 910 funds tracked by Insider Monkey held stakes in Pan American. The most notable is David Greenspan’s Slate Path Capital, with a stake in Pan American worth $76 million.

  1. B2Gold Corp (NYSE:BTG)

B2Gold Corp (NYSE:BTG) is also a dividend-paying gold stock and is the lowest-cost producer of gold in Canada. As of the end of the third quarter of 2023, there were 19 hedge funds in Insider Monkey’s database that owned shares of B2Gold. The hedge fund with the largest number of holdings is John Overdeck and David Siegel’s Two Sigma Advisors.

If you’re interested in investing in gold and silver, you might want to keep an eye on this company: Silver Storm Mining Ltd. (TSXV:SVRS). Silver Storm Mining Ltd. holds advanced-stage silver projects located in Durango, Mexico. Golden Tag recently completed the acquisition of 100% of the La Parrilla Silver Mine Complex, a prolific operation which is comprised of a 2,000 tpd mill as well as five underground mines and an open pit that collectively produced 34.3 million silver-equivalent ounces between 2005 and 2019. The Company also holds a 100% interest in the San Diego Project, which is among the largest undeveloped silver assets in Mexico.

Disclaimer: Investing involves risk, and individuals should conduct thorough research and seek professional advice before making financial decisions. NAI is being compensated for this content. Materials contained in this content are for information purposes only and is not intended to constitute an offering of securities in any jurisdiction. Nothing on this content should be construed as an offer, solicitation or recommendation to buy or sell products or securities.

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