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Commodity Investing

Gold Stocks List: 7 Materials Companies to Own in 2020

The commodities sector is a hot one right now, and many advisory services are putting up gold stocks lists. If you’re new to the sector or working on balancing your portfolio, gold stocks should definitely be on your radar.

As you look at the top gold stocks out there, remember there are several different types of gold stocks to consider. This includes gold mining companies, brokers, royalty or streaming companies and more. The type of company you hold shares in plays a role in your exposure to commodities. So it’s good to consider each type of company and its operations before investing.

Best gold stocks list for your portfolio

The Best Gold Stocks List for 2020

What are the most popular gold stocks in 2020? We’ve compiled a list of gold stocks that represent all types of companies within the commodities industry. Each have a proven record for success and a bright future ahead of them. Here are the seven best gold companies to invest in this year:

  • Franco-Nevada Corp. (NYSE: FNV)
  • Wheaton Precious Metals Corp. (NYSE: WPM)
  • Kirkland Lake Gold Ltd. (NYSE: KL)
  • Barrick Gold (NYSE: GOLD)
  • Agnico Eagle Mines (NYSE: AEM)
  • Eldorado Gold Corp. (NYSE: EGO)
  • Newmont Corp. (NYSE: NEM)

Franco-Nevada Corp.

Franco-Nevada Corp. owns royalties and streams in gold mining and other commodity and natural resources, making it a safe investment for people who want gold exposure in their portfolio. The company has been a paragon of stability over the last five years, sustaining a CAGR of 23% since 2015. With a P/E ratio of 120, it’s one of the more expensive plays in this sector. But, it might be worth the price for the stability alone.

Wheaton Precious Metals Corp.

Wheaton Precious Metals Corp. is more of a silver company than a gold mining stock, but it has a presence in the gold market. The company has done well over the last five years. But 2020 has been especially kind to the stock, with gains of 75% YTD! With a market cap of just over $21B, this company is a large cap player that will shine in any portfolio—especially as a play to diversify into commodities.

Kirkland Lake Gold Ltd.

Kirkland Lake Gold Ltd. is a gold mining company with several profitable mines throughout Canada and Australia. And it stands out as a shining star on this gold stocks list. Despite dipping earlier in 2020, the stock has rebounded and gained in the last six months, showing strong indicators of growth in the future to come. It’s one to watch as more institutional investors throw their weight behind the company.

Barrick Gold

With the ticker symbol “GOLD,” it’s immediately clear that Barrick Gold is a reputable player in this industry. With 16 operating sites in 13 countries, this is about as global of an investment as you could want in your portfolio. The company is up nearly 50% in 2020 alone — an impressive feat for a company with a market cap of nearly $50B. The company’s reputability and strong integration into supply chains makes it one of the best gold stocks worth investing in.

Agnico Eagle Mines

For those who want a little dividend action with their commodities exposure, Agnico Eagle Mines is a welcome investment. The 1% dividend may not seem like much, but it’s a strong sign for this large cap growth stock’s continued success into the future. After lagging with the industry in early 2020, the stock is up 29% YTD. The best part? It still only has a P/E ratio of 38, making it an affordable play.

Eldorado Gold Corp.

Interested in a small cap company to round out your gold investments? Eldorado Gold Corp. has a $2B valuation and a share price hovering around $10. But it might not be long before this gold miner is firmly in large cap range. The company has had some downturn over the last few years, but is trending in the right direction in 2020 with strong revenue of over $600 million and net income above $80 million.

Newmont Corp.

The world’s largest gold mining company, Newmont Corp. is one of the most stable stocks in the commodities sector. Its affordable P/E of 12 and 1.6% dividend make it an attractive buy, as does the growth of 44% it’s seen in 2020 so far. With global exposure and strong supply chain integration, few companies on our gold stocks list are safer than this one to add to your portfolio.

Best Gold Stocks List for You

As commodities continue to heat up in 2020, you may want to consider this gold stocks list for your portfolio. In fact, you can gain immediate access to trending stocks updates through the Investment U e-letter below. Sign up today and take advantage of this FREE newsletter that provides stock market insights from some of Wall Street’s most renowned experts.


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