Buy Gold Stocks – Invest in the Best Gold Stocks Today!

Fact Checked by Gary McFarlane

One of the best ways to gain exposure to gold is via stocks. In many cases, this will come in the form of gold mining companies. Additionally, you can also invest in this precious metal via gold royalty firms or ETFs.

In this guide, we discuss the best gold stocks to consider right now. We also walk you through the process of how to buy gold stocks online without paying any trading commission.

Table of Contents

#1 Broker to Buy Gold Stocks – eToro

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How to Buy Gold Stocks – A Quick Guide For 2021

Learning how to buy gold stocks is actually very straightforward. When going through a user-friendly broker like eToro, not only can you buy gold stocks at 0% commission, but the process shouldn’t take more than five minutes.

Here’s what you need to do:

  • Step 1: Open an Account with eToro – Get the ball rolling by opening an account with eToro. This will require some basic personal information alongside your email address and cell phone number.
  • Step 2: Upload Your ID – You can complete the KYC process near-instantly at eToro by uploading a copy of your government-issued ID.
  • Step 3: Deposit Funds – Deposit from just $50 into your eToro account so that you can proceed to buy gold stocks  Supported payment types include a debit/credit card, online banking, Paypal, and Neteller.
  • Step 4: Search for Gold Stock – Enter the name of the gold stock into the search box. When you see the correct company, click on the ‘Trade’ button.
  • Step 5: Buy Gold Stocks – You should now see an order box populate on-screen. Enter the size of your investment stake into the relevant box and confirm the position by clicking on ‘Open Trade’.

By following the simple walkthrough above, you can buy gold stocks in under five minutes without paying a single cent in trading commission.

67% of retail investor accounts lose money when trading CFDs with this provider.

Best Gold Stocks to Buy Now – List of the Best Gold Stocks

Below you will find a list of the best gold stocks to buy right now.

  1. Barrick Gold – Gold Mining Stock With Operations in 13 Different Countries
  2. Kinross Gold – Top Gold Mining Stock That Pays Dividends
  3. Franco-Nevada – Gold Stock Involved in Royalties and Streaming
  4. VanEck Junior Gold Miners ETF – Invest in 100+ Gold Mining Stocks
  5. Newmont Mining Corp – Huge Gains in Recent Years and Attractive Dividends

Scroll down to find out more about why each gold stock is worth considering.

How To Buy Gold Stocks – Choose a Broker

The only way to buy gold stocks in a safe and cost-effective manner is to find a regulated online broker that offers low fees. The best platforms in this respect can be found below:

  • eToro – Overall Best Place to Buy Gold Stocks
  • Capital.com – Trade Gold Stocks at 0% Commission

Not sure which investment platform to consider? Scroll down to read our detailed reviews.

What are Gold Stocks?

Make no mistake about it – there are plenty of ways to invest in gold. For instance, you might consider buying physical gold bullion or coins. Alternatively, you can also gain exposure to gold through an ETF that is backed by a physical supply of the precious metal. With that said, perhaps an even more efficient way to invest in gold is via stocks.

what are gold stocks

Put simply, you will be buying shares in companies that are directly involved in the gold industry. In the vast majority of cases, this will consist of gold mining companies. Additionally, there are also firms that specialize in gold royalties and streaming. You then have ETFs that give you access to a diversified basket of gold stocks.

As the best gold stocks come in various shapes and sizes, we’ll explain each option in more detail in the sections below.

Gold Mining Stocks

As noted above, the most common method to buy gold stocks is via mining companies. The common denominator here is that the company will have various gold mining sites – perhaps both domestically and internationally.

  • The firm in question makes money not only by mining gold but selling it in the open marketplace.
  • Naturally, this means that the firm can enjoy larger operating profits when the global value of gold is on the up.
  • It should be noted that gold mining stocks can represent a high-risk investment.
  • This is because you are wagering in the hope that the company is successful in its mining operations.
  • After all, companies can invest millions of dollars into a specific mine, only to find that the location yields little to no output.

The best way to mitigate the risks of buying stocks in gold mining companies is to ensure that you are well diversified.

Gold Royalty and Streaming Stocks

You then have companies that are involved in gold royalties and streaming. The former refers to the process of paying an up-front fee in return for a share of a specific mine’s output. This is a win-win situation for both parties involved. For instance, while the mining company receives much-needed funding for a new venture, the royalty firm will enjoy a share of potential revenues without needing to risk too much capital.

what are gold stocks?

Those involved in royalties will typically offer gold streaming services too. In a nutshell, this will see the company agree to purchase gold from a specific mine at some point in the future, at a pre-defined price. Once again, this benefits both parties. While the mining company ensures that it has a buyer for its future output, the streaming firm can secure a favorable purchase price in advance.

As we cover in more detail shortly, one of the largest companies in the world to specialize in gold royalty and streaming is Franco-Nevada – an NYSE-listed entity with a market capitalization of over $35 billion.

Gold Stocks via ETF

We briefly mentioned above that the most risk-averse way to buy gold stocks is to ensure that you diversify well.

  • This means buying a wide variety of gold stocks from several sectors – covering firms involved in mining, royalties, and streaming.
  • Plus, this also means investing in gold stocks that are active in a plethora of regions, rather than being exposed to a small number of domestic locations.

Taking all of this into account, one of the best ways to buy gold stocks is through an ETF. Through a single trade, your chosen ETF provider will hold shares in dozens, if not hundreds of gold stocks.

You will likely receive a quarterly dividend payment from the ETF, which covers any capital gains that the provider generates when purchasing and selling shares.

Best Gold Stocks to Buy Now – Full Analysis

Attempting to find the best gold stocks for your portfolio can be a challenging undertaking. After all, you will need to do plenty of research on the respective company before parting with any funds. As many gold companies – especially those involved in mining, are somewhat small in nature, this can make the process even more daunting.

If you need a little bit of inspiration, below you will find an analysis of the best gold stocks to buy right now – as per our own research findings.

1. Barrick Gold – Gold Mining Stock With Operations in 13 Different Countries

Founded in 1983 and headquartered in Canada, Barrick Gold is one of the world’s largest gold mining companies. At the time of writing, the firm has active mining operations in over 13 countries. In terms of accessing Barrick Gold, the stocks are listed on the NYSE. You would have paid just over $14 per share towards the end of 2020.

buy barrick gold stocks

12 months later the same shares are trading at $19 – so that’s 1-year returns of 35%. What we also like about this top-rated gold stock is that the firm has since announced that it expects its operating costs to decline in the coming years. At an expected drop to $800 per oz from $1,000 per oz, this could reduce costs by 20%.

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Kinross Gold – Top Gold Mining Stock That Pays Dividends

Kinross Gold is another popular gold stock that is stationed in Canada, albeit, the firm is actively involved in other mining regions. This includes Russia, Brazil, Ghana, and China. Launched in 1993, Kinross Gold is listed on the NYSE with a market capitalization of over $7 billion. Those invested in this top-rated gold stock have enjoyed impressive returns in recent years.

Kinross Gold stock price

Back in late 2016, the shares were trading at $3 each. Fast forward to late 2021 and the stocks have since breached highs of almost $9. This represents  growth of approximately 300% in less than a year of trading. If you’re seeking the best gold stocks for dividends, Kinross Gold has you covered. At the time of writing, the stock is offering a running yield of 1.;91%.

67% of retail investor accounts lose money when trading CFDs with this provider.

3. Franco-Nevada – Gold Stock Involved in Royalties and Streaming

We briefly mentioned earlier that some gold stocks are involved in royalty and streaming services. At the forefront of this is Franco-Nevada – which is listed on both the NYSE and Toronto Stock Exchange (TSE). We found that the firm is one of the best gold stocks to invest in from a growth perspective.

franco-nevada stock nyse

For instance, had you purchased Franco-Nevada stocks when they were first listed on the NYSE in 2007, you would have paid just $15 per share. Fast forward to 2021 and the stocks have since surpassed $163. This means that in just over 14 years of trading, Franco-Nevada stocks have increased by almost 1,000%. Plus, much like Kinross Gold, Franco-Nevada pays dividends.

67% of retail investor accounts lose money when trading CFDs with this provider.

4. VanEck Junior Gold Miners ETF – Invest in 100+ Gold Mining Stocks

If you’re looking to invest in the best gold mining stocks but don’t quite know which companies to choose – you might want to consider an ETF. One of the most popular options in this respect is the VanEck Junior Gold Miners ETF – which gives you indirect access to over 100 gold stocks that are actively involved in mining operations.

VanEck Junior Gold Miners ETF

To give you an idea of some of the gold stocks held by this ETF, this includes Endeavour Mining Corp, Evolution Mining Ltd, and Harmony Gold Mining Co Ltd.  The VanEck Junior Gold Miners ETF is listed on the NYSE Arca, so you can enter and exit a position at any given time during standard market hours. This gold stocks ETF is up 31% during the 12 months prior to writing this page.

67% of retail investor accounts lose money when trading CFDs with this provider.

5. Newmont Mining Corp – Huge Gains in Recent Years and Attractive Dividends

Founded in 1921, Newmont Mining Corp is one of the most established gold mining companies in the US. Listed in the NYSE, this company enjoys a huge market capitalization of over $44 billion. Not only has this top-rated gold stock generated huge growth in recent years, but it also pays an attractive dividend.

newmont mining stocks

Regarding the former, Newmont Mining Corp was trading at just over $31 in the five years prior to writing this page. Since then, the stocks have surpassed $75, which translates into growth of over 140%. In terms of dividends, this gold stock is offering a running yield of almost 4% based on current market conditions – which is very attractive.

67% of retail investor accounts lose money when trading CFDs with this provider.

Investing vs Trading Gold Stocks

There are many ways that you can invest in gold stocks. For instance, you might decide to buy a collection of gold stocks and allow them to mature over several years. This could potentially give you the best chance possible of riding out market waves.

On the other hand, you might also decide to take a shorter-term approach to gold stocks, where you will look to monetize from volatile pricing swings.

Let’s explore both options so that you buy gold stocks in a manner that suits your investment goals.

Invest in Gold Stocks

The easiest way to buy gold stocks is to make a purchase and then keep the shares in your portfolio for many years.

  • In fact, the general rule of thumb when investing via a long-term strategy is to keep your stocks for five years at a minimum.
  • This will allow you to avoid focusing on short-term pricing swings.
  • By investing in gold stocks in the long run, you might also stand the chance of earning dividends.
  • As noted earlier, the likes of Newmont Mining Corp are currently yielding almost 4% in dividends – which is significantly higher than the industry average.

This would then allow you to use your dividends to invest in other gold stocks.

Trade Gold Stocks

Gold stocks are prone to some of the highest volatility levels in the stock market. This is no different from the spot price of gold itself, which is known for its volatile and speculative nature.

This is, however, welcome news for those that prefer to trade stocks on a short-term basis. For example, you might consider a swing trading strategy, which will see you buy and sell gold stocks over the course of a few days or weeks.

trade gold stocks at etoro

Some investors also engage in gold day trading. This means that you will enter a gold stock position and close it a few minutes or hours later. Either way, your objective when trading gold stocks is to make small but frequent gains.

The best way to trade gold stocks online is through a broker that offers CFDs. This is because you can choose from a long or short position and even apply leverage. Many brokers in this space – such as eToro and Capital.com – offer 0% commission trading on gold stocks.

How to Choose the Best Gold Stocks for my Portfolio?

In order to choose the best gold stocks for your portfolio, you need to draw up a shortlist of core variables. This should include the specific industry that the gold stock is involved in, where it has its operations, past performance, and whether or not it pays dividends. 

We explore these key metrics in more detail in the sections below.

Type of Gold Stock

First and foremost, make sure you understand exactly what type of gold stock you are buying.

  • For example, the likes of Gold Barrick and Newmont Mining Corp are directly involved in gold mining operations.
  • They both have mining fields in various parts of the world, which helps from a diversification and risk-mitigation perspective.
  • On the other hand, you then have companies like Franco-Nevada, which is involved in gold royalties and streaming.
  • Many would argue that this segment of the gold arena is somewhat less vulnerable to volatility in comparison to mining companies.

In turn, the upside potential on your investment might be more conservative.

Operations

You then need to assess how diversified your chosen gold stock is. For example, if you buy gold stocks in a mining company that is exclusively focused on one location – the risks are super high. After all, if the mining operation returns sub-par output levels, you will likely find that this is negatively impacted in its share price.

On the other hand, if the company is well-diversified across many countries and regions, then this is a much better option in terms of risk management.

Size of Company

The next thing that you need to look at in your search for the best gold stocks is the size of the respective company. This is more important than you think, as many companies active in the gold mining industry are small in nature. This means that the firm will have a modest market capitalization and thus – wild volatility levels are much more likely.

good gold stocks to buy

At the other end of the spectrum, you have firms like Newmont Mining Corp and Franco-Nevada, which both have market valuations that run into the billions of dollars. This means that purchasing shares in these gold stocks will come with less risk than those with a small market capitalization.

Past Performance

Past performance is never a sure-fire way to predict the future price of gold stock. It does, however, at least give us an indication as to what sort of trajectory the company is on.

For example, Barrick Gold has been performing very well recently, with the stocks generating growth of over 35% in the past 12 months alone. This indicates that the markets are bullish on this stock.

But, if your chosen gold stock has been moving in the wrong direction in recent months, then this would suggest that something is amiss with the company. This could be anything from less than desired cash flow levels or a new mining field that has underproduced.

Dividends

It’s also worth thinking about whether or not you seek gold stocks that pay dividends. This will typically depend on how established the gold company is and whether or not it holds sufficient levels of cash.

On the other hand, if you are investing in a smaller-cap company involved in gold mining, then it’s unlikely that a dividend policy will be in place. This is because the gold mining company in question will need to reinvest its retained profits to help the firm grow.

Benefits of Gold Stocks

If you’re unsure whether or not gold stocks are right for your portfolio, the sections below will discuss some of the main benefits of investing in this marketplace.

Liquid Investment

One of the main benefits of buying gold stocks – as opposed to purchasing and storing physical bullion or coins, is that your investment is liquid. This means that at any given time during standard market hours, you can cash out your gold stocks. This is in stark contrast to buying physical gold, which can only be sold in person.

Secure

Another benefit of buying gold stocks is that you do not need to worry about the security of your investment. This is unlike buying physical gold, which is always at risk of damage or even theft.

Easy to Diversify

There is a huge number of gold stocks to choose from, which makes it easy to diversify. You can build a portfolio of mining companies, alongside firms involved in royalties and streaming. You can also invest in an ETF that invests in gold stocks on your behalf. This removes the need for you to research gold stocks yourself – as this role is reserved for the ETF provider.

Small Investments

Gold stocks are also great for those of you that wish to invest small amounts. This is especially the case when using a beginner-friendly broker like eToro, which offers fractional shares. This means that irrespective of how much a single share is trading at, you can invest from just $50. This also links back to the previous discussion on diversification, as you can buy plenty of different gold stocks without needing to break the bank.

Hedging

Gold is one of the first asset classes that investors turn to when the broader economy is looking somewhat uncertain. After all, gold is viewed by many as a safe haven. As such, the best gold stocks in this marketplace will often allow you to hedge your bets against other industries – such as tech, banking, and retail.

Drawbacks of Gold Stocks

Before you buy gold stocks, you also need to consider the drawbacks that this marketplace presents.

Volatility

Even the best gold stocks suffer from above-average volatility levels. On the one hand, this is in direct correlation to the volatility seen by the precious metal itself. That is to say, the price of gold often experiences wild pricing swings throughout the day, which in turn, follows through to stocks operating in this space.

best gold stocks to buy

With that said, gold stocks are often volatile because a lot often rides on mining operations. For instance, a firm might invest millions of dollars into a new mining field, only to find that it is home to far less product than the company anticipated. Ultimately, if you’re not comfortable with high levels of volatility, gold stocks might not be right for your portfolio.

Over-Reliance on Gold Price

Another major drawback with gold stocks is that companies are far too reliant on the price of gold. This does make sense when you consider that gold firms will benefit from wider profit margins when the price of the gold is on the up. But, if the price of gold is going through a downward period, then this will all but certainly have a negative impact on the wider value of stocks in this industry.

Mismatch Between Gold Prices and Stocks

We should also mention that there is often a mismatch between gold stocks and the market value of the commodity itself. For example, just because the spot price of gold is on the up, this does not mean that your chosen stocks will follow suit. On the contrary, gold stocks are companies that have a bottom line.

In other words, if the firm is suffering from high debt levels and a weak balance sheet, the markets might view the gold stock as high risk. In turn, this could result in a market sell-off, and thus – the share price of the company will decline.

Access to Data

Seasoned investors will rely on data provided by the companies they invest in. However, in the case of smaller gold mining companies that are listed on less liquid exchanges, access to reliable data can be challenging. This is because the rules governing smaller exchanges are a lot more flexible, so this often leaves gold investors in the dark.

Where to Buy Gold Stocks – Full Broker Reviews

You need a good broker on your side when it comes to buying gold stocks online. The best platforms that we came across can be found below.

1. eToro – Overall Best Place to Buy Gold Stocks

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eToro is home to thousands of stocks – many of which are involved in the gold industry. In fact, all of the best gold stocks that we reviewed today are available on eToro. Not only this, but you can invest in stocks at eToro without needing to pay any trading commissions. As a broker that supports fractional shares, you only need to buy $50 worth of gold stocks.

This is the case regardless of how much the stocks are trading at. Plus, eToro gives you access to 17 stock exchanges – so diversification is simple. In addition to stocks, eToro is also home to gold ETFs. Outside of the gold department, eToro lists plenty of index funds, forex markets, and even cryptocurrencies. You can get started with an account at eToro with just $50. Supported payment methods include bank transfers, debit/credit cards, and e-wallets.

etoro review

If you’re a fan of passive investing, eToro offers a popular Copy Trading tool. Once you have chosen a suitable investor, this tool allows you to copy the individual’s trades automatically. You can also invest in pre-made portfolios that are managed by the eToro team. Regulation is very strong at this top-rated platform, with eToro holding licenses with the FCA, SEC, CySEC, and ASIC. The broker has a long-standing track record too – not least because it has been offering online trading services for over 14 years.

Pros

  • Invest in stocks at 0% commission and ZERO stamp duty
  • Minimum investment per stock is $50
  • Supports debit/credit cards, e-wallets, and UK bank transfers
  • Regulated by the FCA and covered by the FSCS
  • Used by over 20 million people
  • Perfect for beginners
  • Social and copy trading tools

Cons

  • Perhaps too basic for technical traders
  • No support for MT4 or MT5

 67% of retail investor accounts lose money when trading CFDs with this provider.

2. Capital.com – Trade Gold Stocks at 0% Commission

capital.com review

Capital.com is an online broker that allows you to trade CFDs. This means that you can buy and sell gold markets without needing to own or store anything. This top-rated broker offers more than 4,000 financial instruments in total. In addition to standard spot prices, you can also trade gold stocks. Furthermore, and perhaps most importantly, you can trade stocks with leverage. Most account holders will be offered leverage of 1:5 when trading stocks, albeit, higher limits might be available depending on your location.

What we also like about Capital.com is that it allows you to profit from both rising and falling gold prices. This is because you can enter with a sell order should you wish to short the respective company. Alternatively, if you think the gold stock will rise in value, you will enter with a buy order. All trading positions at Capital.com can be executed on a 0% commission basis. In exploring the spreads offered by this CFD broker, we found them to be competitive across the board.

capital.com review

In addition to stocks, you can also trade ETFs, forex, cryptocurrencies, bonds, index funds, and more. The minimum amount required to open an account with Capital.com is $20. You will, however, need to deposit funds with a debit/credit card or e-wallet to benefit from this low minimum, Otherwise, if using a bank wire transfer, the minimum jumps up to $250. Much like eToro, Capital.com is heavily regulated – so safety should not be a concern. This includes licenses with ASIC, CySEC, NBRB, and the FCA.

Pros

  • Top-rated spread betting and CFD broker
  • Licensed by the FCA, ASIC, CySEC,and NBRB
  • $20 minimum deposit (debit/credit cards and e-wallets)
  • 0% commission on all markets
  • Tight spreads and no fee on deposits or withdrawals
  • Supports thousands of financial markets
  • Convenient for newbies

Cons

  • Experienced traders might consider the broker too basic
  • $250 minimum deposit on bank transfers

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.77% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.

How to Buy Gold Stocks – Detailed & Explained in Full

In the final section of this comprehensive guide, we are going to show you how to buy gold stocks at top-rated broker eToro without paying any trading commissions. All you need to complete the process is a minimum deposit of $50 – and you’re good to go.

Step 1: Open a Broker Account

Visit the eToro website and elect to open an account. After proving some personal information and contact details, you will need to confirm your email address and telephone number.

how to join etoro

Next, you will be asked a few quick questions about your prior trading experience. This ensures that eToro knows which financial products are suitable for your skillset – such as leverage.

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Verify Identity

Upload a copy of your passport or driver’s license to get verified. Additionally, eToro needs a document that proves your stated home address. This can be the likes of a bank statement or utility bill.

Step 3: Deposit Funds

The minimum deposit requirement at eToro is a modest $50. You can fund your account instantly when using a debit or credit card. e-wallets like Paypal and Skrill are also processed instantly.

Deposit Funds

Take note, bank wire deposits can take several days to process.

Step 4: Search for Gold Stocks

You will now need to search for the gold stock that you want to buy. For instance, in the image below, you will see that we are searching for Barrick Gold.

buy gold stocks etoro

Once you find your chosen stock, click on the ‘Trade’ button.

Step 5: Buy Gold Stocks

Finally, in the ‘Amount; box, enter your investment size. The minimum when buying stocks at eToro is just $50. 

buy gold stocks etoro

Click on the ‘Open Trade’ button to complete your investment. If the button states ‘Set Order’, this means the market is currently closed. eToro will simply execute the trade when the market is open again.

How to Buy Gold Stocks – Conclusion

The process of buying gold stocks has never been easier – especially with brokers like eToro offering fractional investment from just $50. The key challenge is knowing which gold stocks to buy. After all, this industry is super volatile at times, so in-depth research is crucial. 

Nevertheless, if you want to buy gold stocks right now – the process at eToro takes less than a few minutes. Plus, this top-rated broker – which is heavily regulated, offers 0% commission on all of its supported gold stocks and ETFs.

1
$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

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About Kane Pepi PRO INVESTOR

Kane Pepi writes for several high profile publications such as InsideBitcoins, the Motely Fool, and Learnbonds. Based in Malta, Kane is extremely skilled at complex subjects related to financial matters - including a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and actively engaged in Doctorate Degree research, for the money laundering threats of the blockchain economy.