| Best Gold Stocks for June 2024 | |||||
|---|---|---|---|---|---|
| Ticker | company | Market capitalization ($ billion) | Price ($) | 30-day return (%) | P/E Ratio |
| FCCX | Freeport-McMoRan | 76.5 | 53.22 | 6.6 | 46.78 |
| R.G.L.D. | Royal Gold Co., Ltd. | 8.6 | 130.51 | 4.4 | 38.52 |
| Nemu | Newmont Corporation | 48.5 | 42.08 | -2.7 | N/A |
| SSRM | SSR Mining Co., Ltd. | 1.1 | 5.34 | -4.3 | N/A |
What you need to know about investing in gold
As of late May 2024, the price of gold was just below its all-time high of around $2,500 per ounce. Over the past year, a combination of factors, including growing interest in investing in general, rising expectations for the precious metal itself, and concerns about the continuing effects of inflation, have driven the price of gold to unprecedented heights.
With the price of gold reaching an all-time high, investors may be wondering whether investing in the precious metal is still worthwhile. Of course, there is no guarantee that the price of gold will fall from these highs, and investors can protect themselves from inflation by holding onto gold even at high prices. For those concerned about the price of the metal itself, another way to indirectly target gold is to look at the companies involved in gold production.
How we picked the best gold stocks
To compile the rankings, we looked specifically at gold mining companies that trade on the New York Stock Exchange or Nasdaq. To ensure the list included established companies, we excluded companies with stock prices below $5, daily trading volumes below 100,000, or market capitalizations below $300 million. We then ranked the remaining gold mining companies based on their highest 30-day returns.
Note that two of the companies on this list do not have P/E ratios listed. These two companies had net losses during the period in question, making it impossible to calculate a P/E ratio.
The pros and cons of gold
Investing in gold mining companies has several important advantages and disadvantages. The advantages of these companies include their potential as a leveraged trade for gold. When the price of gold rises, the price of gold mining companies is likely to rise at an even faster pace due to their important role in producing gold for bullion and jewelry investment. Similarly, when the price of gold rises, the profits of these companies also increase, giving them the opportunity to make significant capital gains. Additionally, gold stocks tend to be much more liquid than physical gold investments, making them ideal for investors who want to adjust their exposure over time. Finally, gold companies do not require investors to pay storage or transportation fees that are typically required when buying and selling physical gold.
On the other hand, gold mining companies also pose risks for investors. Many of these companies also operate in other sectors, so they are not pure gold investments. In addition, many gold mining companies operate in different locations around the world. As such, they are subject to different regulations. This can be difficult for investors to monitor. Finally, there is no guarantee that if the price of gold rises, the stock prices of these companies will also rise.
While the above stocks have been featured on this month’s top list, it is important to note that past performance is no guarantee of future returns.
Comments, opinions and analyses expressed on Investopedia are for informational purposes only. Please read our warranties and disclaimers for more information.
At the time of writing, the author does not have a position in any of the securities mentioned.
