American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Best gold stocks and ETFs to buy as its price surges

by admin April 22, 2025
April 22, 2025
Best gold stocks and ETFs to buy as its price surges

Gold price has continued to surge this year, becoming the best-performing major asset. It has soared by almost 30% and is nearing the important resistance point at $3,500. Analysts have boosted their gold forecasts, with Goldman Sachs estimating that it will hit $3,700. Some pros anticipate that gold will hit as high as $4,000 this year. 

Gold’s performance is a boon to companies and exchange-traded funds (ETFs) in the industry. This article looks at some of the best gold stocks and ETFs to buy and hold as the rally intensifies.

Wheaton Precious Metals Corp (WPM)

Wheaton Precious Metals is the best gold stock to buy because of its business model. This explains why the stock has jumped by 51% this year and 145% in the last five years, outperforming gold itself. 

WPM is a leading player in the gold industry, despite not engaging in mining itself. Instead, it owns rights to gold mines and earns revenue from the rights holders. This ensures that it is a high-margin company since it does not need many employees. 

For example, Wheaton made over $1.28 billion in annual revenue last year and a net profit of over $552 million. It then uses these profits to pay its shareholders and acquire more rights to gold mines. 

This business model explains why Wheaton Precious Metals always trades at a premium compared to other companies. It has a forward P/E ratio of 41, higher than popular growth companies like NVIDIA and Microsoft.

Franco-Nevada (FNV)

Franco Nevada is another good quality gold stock to uy and hold. Like Wheaton, the company does not do the heavy lifting. Instead, it finances gold mining companies in exchange of royalties. This is a good business model as it ensures that it does not spend a lot of money in wages and other operating expenses. 

Franco-Nevada is also a high-margin company. It generated over $1.1 billion in annual revenue last year and a net income of $552 million. This revenue will likely keep going up because of the soaring gold prices.

Franco-Nevada also trades at a premium, with its forward P/E ratio standing at over 40. This valuation is justified by its strong business performance and its history of returning funds to shareholders.

Royal Gold (RGLD)

Royal Gold is also one of the top gold stocks to invest in today. Like the other two, it is in the streaming and royalty industry, where it offers exposure to gold without operating the mines.

Royal Gold is a bit smaller than Wheaton and Franco-Nevada. It generated $712 million in revenue last year and a net profit of nearly $350 million, resulting in a margin of nearly 50%.

Royal Gold’s stock price has surged by over 56% in the last 12 months. It is also cheaper than the other two as it has a P/E multiple of 28, lower than the other’s 40%.

Top gold ETFs to buy

ETFs are also a good approach for investing in gold and capitalizing on its strong rally. The two most popular gold ETFs are the SPDR Gold Shares (GLD) and iShares Gold Trust (IAU). 

Since these ETFs are the same, it makes sense to buy IAU because of its cheaper expense ratio of 0.25%, which is cheaper than GLD’s 0.40%. That 0.15% spread can add up over time. 

Some analysts recommend investing in gold mining ETFs like the VanEck Vectors Gold Miners ETF (GDX), Sprott Gold Miners ETF (SGDM), and iShares MSCI Global Gold Miners ETF (RING).

The post Best gold stocks and ETFs to buy as its price surges appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Indian markets close: Sensex, Nifty log sixth straight gain; Banks, FMCG lead despite muted session
next post
European stocks slide as trade fears, Trump’s Fed criticism dampen post-holiday mood

Related Posts

Europe markets open: Stocks slip as markets digest...

August 22, 2025

Hiring stays strong for low earners — while...

June 2, 2024

Is it time to pull out of high-flying...

May 31, 2025

Is full self-driving real or just hype? Promise,...

June 9, 2025

European gas markets on the edge ahead of...

November 13, 2024

Trump’s 50% tariff on Brazil imports to brew...

July 12, 2025

Rolls-Royce share price surged: is Tufan Erginbilgiç just...

October 1, 2024

VYM ETF is up 20% in 2024: But...

December 18, 2024

Taiwan probes 11 Chinese firms, alleges SMIC poached...

March 29, 2025

Chinese stocks soar, posting best weekly gains since...

September 27, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • FBI raid on John Bolton’s home in Washington linked to classified documents

      August 25, 2025
    • Argentine senate deals blow to Milei’s austerity agenda with university budget boost

      August 25, 2025
    • Jackson Hole Symposium: what Powell said about economic effects of Trump’s tariffs

      August 25, 2025
    • At Jackson Hole, Fed Chair Powell signals possible cuts while warning of uncertainty

      August 25, 2025
    • Trump threatens to fire Fed Governor Lisa Cook amid mortgage fraud allegations

      August 25, 2025

    Categories

    • Business (3,763)
    • Investing (2,783)
    • Latest News (2,048)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved