Best Gold Stocks for August 2024

These are some of the best-performing stocks for companies involved in gold production

Gold is one of the oldest and most famous stores of value worldwide. While many investors think of buying bullion or jewelry as a hedge against market volatility—or consider accessing the precious metal through shares of an exchange-traded fund (ETF)—another way to gain exposure to gold is through companies that mine and produce it.

Key Takeaways

• The top gold mining companies for August 2024, based on 30-day returns, include Skeena Resources Ltd., SSR Mining Inc., and Seabridge Gold Inc.
• Gold mining companies provide a way for investors to gain access to the gold market without investing directly in physical gold.
• The price of gold is roughly $2,404 per ounce, down from an all-time high achieved earlier this year.

Below are the top gold stocks for August 2024, based on 30-day returns. We specifically focused on mining companies that include gold in their operations. We include a more detailed explanation below of our methodology for ranking gold stocks. All data are current as of July 30, 2024.

What to Know About Investing in Gold

As of late-July 2024, the price of gold was $2,404 per ounce, slightly below its all-time high reached earlier this year. The price has been driven ever higher in the last year due to a combination of renewed interest in investing broadly, a surge in excitement about the precious metal itself, and concerns about the ongoing impact of inflation, among other factors.

With the price of gold near all-time highs, investors may be wondering if it still pays to invest in the precious metal. Of course, there is no guarantee that the price of gold will drop from these highs, and investors can still protect against inflation while holding the metal even at high prices. Another way to target gold indirectly, for those who may be concerned about the price of the metal itself, is by looking at companies involved in its production.

How We Chose the Best Gold Stocks

We looked specifically at gold mining companies trading on the New York Stock Exchange or the Nasdaq as we completed our ranking. To ensure that our list included established firms, we excluded those with stock prices under $5, with less than 100,000 in average daily trading volume, or with a market capitalization of less than $300 million. We then ranked the remaining gold mining companies based on highest 30-day return, excluding any that had a negative return during the relevant time period.

Note that some of the companies on our list do not have a P/E ratio. This may be the result of net losses during the period in question, which make calculating a P/E ratio impossible.

Gold Advantages and Disadvantages

Investing in gold mining companies provides some important benefits and drawbacks. Advantages of these companies include their potential as a leveraged play on gold; when the price of gold rises, the price of gold mining companies may rise at an even faster rate due to their important role in the production of gold for bullion and jewelry investments. Similarly, as gold prices rise, so too do the profits of these companies, giving an opportunity for them to reap substantial capital gains. Additionally, gold stocks tend to be much more liquid than physical gold investments, making them ideal for investors who may wish to adjust their exposure over time. Finally, gold companies do not require investors to pay storage and transport fees, typically necessary when buying or selling physical gold.

On the other hand, gold mining companies have some risks for investors as well. Many of these companies conduct operations in a number of other areas as well, making them not pure-play gold investments. Along with this, many gold miners operate in a number of different locations around the world. They are thus exposed to a range of different regulations. This can be difficult for investors to keep tabs on. Finally, there is no guarantee that if the price of gold rises, the price of the stocks of these companies will also rise.

While the stocks listed above are at the top of our list for this month, it’s important to note that past performance is not a guarantee of future returns.

The Bottom Line

Gold mining stocks provide an indirect way to access the gold market. These companies, which do not necessarily move in tandem with the price of gold but are nonetheless closely tied to the precious metals market, allow investors to potentially benefit from a shift toward gold while still offering the possible benefits of an investment in a company rather than a commodity.

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As of the date this article was written, the author does not own any of the securities listed above.

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