How to Buy Gold Mining Stocks – Top 3 Gold Mining Stocks

Fact Checked by Gary McFarlane

The gold industry has always been huge. Although gold was originally seen as a status symbol for royalty or the wealthy, in the modern world, it’s equally prized by investors looking for a store of value. While gold can be seen as speculative or volatile, buying gold mining stock alleviates these issues. This is because gold mining stocks can outpace the returns offered by direct investment in the commodity and can also continue to rise in value when gold is falling. As such, it’s no wonder that so many investors are beginning to buy gold mining stocks instead of gold itself. If you want to join the trend, then you’re in the right place! We’ll be discussing precisely how to buy gold for beginners, the top brokers, and some of the best gold mining stocks to buy right now! 

#1 Broker to Buy Gold Mining Stocks – eToro

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How to Buy Gold Mining Stocks With eToro – Step by Step Guide 2021

If you need a hand getting started, don’t worry, we’ve got you covered! We’ll be providing you with the rundown on exactly how to buy gold mining stocks for beginners, so you can dedicate your time to the most important aspects of investing. 

  • Step 1: Open an eToro account: If you want to buy gold mining stocks, the first thing you’ll need to do is register with a reputable broker like eToro. To do this just type “eToro.com” into your browser, press “Join Now”, and fill in the form.
  • Step 2: Verify your identity: Because eToro is a regulated broker, you’ll need to confirm your identity. Luckily, this process is quick and easy. All you’ll need is a photo ID (passport, driving license) and proof of address (bank statement, utility bill). 
  • Step 3: Fund your account: Once your account has been verified, you’re almost ready to buy gold mining stock. But before you can do that, you’ll need to fund your eToro account. Simply click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro supports deposits using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill). 
  • Step 4: Buy gold mining stocks: After the funds have arrived in your account, you’re ready to buy gold mining stock! All you’ve got to do is type the name of the asset you’d like to purchase into the eToro search bar, press “Trade”, enter the number of shares you’d like to buy, and press “Open Trade”. You can manage and monitor your stocks from the “Portfolio” section of your account. 

Where to Buy Gold Mining Stocks – Top 3 Gold Mining Brokers

Taking the time to select a trustworthy brokerage is one of the most commonly overlooked aspects of buying stocks. So, to make the process a bit easier for our readers, we’ve included in-depth reviews on the top 3 brokers to buy gold mining stocks. 

1. eToro – All-Around Best Gold Mining Stock Broker 

If you’ve spent much time researching brokers, then the chances are you would’ve heard the name eToro mentioned, and for good reason! Founded in 2007, they’ve grown to become a leading global broker serving more than 20 million active users. They offer a good variety of features and as such, are a great platform to buy gold mining stocks. 

Security & Privacy

Security is one of the most crucial aspects of any trading platform, after all, nobody wants to wake up one day and see their brokerage account empty. To ensure this doesn’t happen, eToro uses SSL Encryption to obscure client data, preventing it from being used by hackers. To protect customers that get their accounts compromised, eToro gives everyone the option of enabling 2-factor authentication. This prevents important account actions from being completed until a code that gets sent to your mobile is inputted. Additionally, eToro is a regulated broker which means they follow rules designed to protect investors, outlined by authoritative bodies like the SEC.

Features

So as we’ve discussed, eToro is a secure trading platform but how does it stack up in terms of features? Well, they boast an incredibly diverse set of features that will be useful to traders of all skill levels. If you’re migrating from another platform, you’ll be happy to know that eToro supports all the major markets, meaning you can manage all your assets from one platform. If you want to brush up on your trading skills, then you can do so with the eToro Academy, eToro’s educational platform. They cover all the basics as well as some slightly more advanced topics, putting you in good stead when it comes to actually buying gold mining stocks. Worried about fees? Well, there’s no need to be, eToro offers commission-free trading on non-leveraged stocks, so you’ll get the best bang for your buck possible. On top of all this, eToro users can use CopyPortfolios to quickly diversify their portfolio with the press of just a single button. 

eToro Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $5
Inactivity Fee $10 (Monthly)

 

Pros

  • Commission-free
  • CopyPortfolio
  • Range of markets
  • SSL encryption
  • Regulated
  • 2FA

Cons

  • Missing support for MetaTrader

68% of retail investor accounts lose money when trading CFDs with this provider.

2. Robinhood – Easiest to Use Gold Mining Stock Trading Platform

If you’re new to the trading scene, you might be a bit overwhelmed by more advanced trading platforms like Webull and eToro. This is where a platform like Robinhood really shines. Robinhood does away with confusing tools and difficult-to-understand terminology, instead, focusing on delivering a great experience to beginners. 

Security & Privacy

Regardless of how experienced of a trader you are, nobody wants to use a platform with lackluster security. Seemingly, Robinhood understands this as they’ve taken the time to implement some pretty impressive security measures. Firstly, they follow guidelines set by the SEC to ensure client funds and data are correctly looked after. Robinhood also requires transactions to be confirmed by multiple sources, this greatly reduces the risk of a bad actor falsely validating transactions. Another way Robinhood looks after customers is with SIPC insurance. In the event of insolvency, SIPC insurance covers securities balances of up to $500,000 and cash balances of up to $250,000. However, if you’ve got more than that in your account, don’t worry. Robinhood also offers excess of SIPC insurance on balances up to $10 million. 

Features

As we mentioned, Robinhood focuses almost solely on delivering a great trading experience for beginners. Robinhood is currently only available on mobile, meaning you can trade on the go but you’ll need a smartphone just to use the platform. The app is simple to use and doesn’t require much getting used to, however, it does lack a lot of the features you would expect from a brokerage. Robinhood Gold fixes some of these issues by providing access to margin trading and “tier-2” market research. While useful for some, it’s up to you to decide whether these features are worth the $5 a month price tag. 

Robinhood Fees

Fee Type Amount
Trading Fee 0%
Credit/Debit Card Fee 3.99%
Spread Fee Variable

 

Pros

  • Regulated by the SEC
  • SIPC insurance
  • Excess SIPC
  • Multisig transactions
  • Simple to use
  • Mobile app 

Cons

  • Overly basic
  • Lacking some investment types

68% of retail investor accounts lose money when trading CFDs with this provider.

3. Webull – Most Secure Gold Mining Stock Broker

Webull is by a reasonable margin the youngest platform on our list, however, don’t let its age fool you, Webull is a comprehensive trading platform with heaps of powerful tools. They were founded in 2017 and in that small amount of time have managed to accumulate an impressive 11 million users. 

Security & Privacy

Security on Webull is second to none. Like any reputable brokerage in the modern world, they’re regulated by a leading authoritative body, in this case, the SEC. Client information is kept under lock and key using AES-256 encryption, rendering the data near-useless to anyone other than Webull. Much like Robinhood, in the event of Webull going bankrupt customers are protected by SIPC insurance, once again, for securities of $500k and cash balances of $250k. Additionally, Webull uses a piece of software called Plaid to protect users as they access their online banking. 

Features

Considering how quickly they’ve grown, I’m sure it’s of little surprise just how many features Webull has packed into their trading platform. Beginners can benefit from unfettered access to a practice account, which can be used to learn new trading strategies without having to spend real money. If you struggle to trade during market hours, Webull has you covered. They support pre/aftermarket trading between the hours of 4am and 8pm. To help incentivize users to join them, Webull offers a free stock valued between $3 and $1600 for completing basic account actions like depositing funds. For the most part, Webull is a solid platform, let down only by its lack of real-time support. 

Webull Fees

Fee Type Fee Amount 
Commision Fee 0%
Transaction Fee (Sells Only) 0.00051% (Min US$0.01)
Deposit Fee $0
Withdrawal Fee $0

 

Pros

  • SIPC insurance 500k securities 250k cash
  • AES-256 encryption 
  • Practice account
  • Premarket/aftermarket stocks
  • Free stocks
  • Plaid 

Cons

  • Lacking real-time support 

68% of retail investor accounts lose money when trading CFDs with this provider.

Buy Gold Mining Stocks – Broker Price Comparison

To help give you a better idea of how each broker stacks up against one another in terms of fees, we’ve included this handy table comparing the fee structure of each broker we’ve discussed. 

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $0 $10 monthly (after 12 months inactivity)
Robinhood $0 on trades of <50 shares. Up to $5.95 on trades over 50 shares  $0 $0 $0
Webull Commission 0% / 0.00051% (Min US$0.01) Transaction fee $0 $0 $0

Top 3 Best Gold Mining Stocks

Much like prospecting for gold, picking the right stocks to buy can be likened to searching for a needle in a haystack. However, it doesn’t have to be! We’ll be providing you with the rundown on some of the best gold mining stocks available right now! 

Barrick Gold Corporation (GOLD)

Barrick Gold Corporation is currently the second-largest gold mining company in the world. They operate mines all over the globe with a focus on setting up long-term (10+ year) operations. They aim to take the top spot as the number one gold producer in the world. As such, Barrick Gold definitely has a lot of potential when compared to other gold mining stocks. So without further ado, here are a few pros and cons to buying Barrick Gold stock. 

Advantages

Barrick Gold is aiming to be the most valuable gold mining company on the planet. With aspirations as lofty as that, there could be a lot of money to be made, should you believe they’ll achieve their goals. To help you make that decision, we’ve broken down a couple of things Barrick Gold has going for themselves. 

Debt Decreasing: It’s common for mining operations to accumulate large sums of debt due to massive operating costs. The issue is, this debt can quickly pile up and overwhelm a company if it has a bad year. Therefore, it’s great to see Barrick Gold reducing their total debt each year. Throughout 2017 and 2018 they were operating at around a 25% debt to equity ratio, however, in 2020 this has more than halved, dropping to just 11.5%. This is a great sign that Barrick Gold is in control of its finances and is here to stay. 

Low-Cost Operations:  Mining is an expensive business and these costs tend to get exacerbated with gold. As such it’s a big plus that Barrick Gold has plans in place to keep these costs as low as possible. They focus on setting up operations with at least 10 years of productivity remaining, reducing the costs of relocating. As of 2020, it costs Barrick Gold around $1000 to produce one troy ounce of gold, however, they aim to reduce this to just $800 by 2025. Meaning, even if the price of gold falls slightly, Barrick Gold should still be increasing profits. 

Disadvantages

Regardless of how well a company is performing or its goals, you can’t escape the financials. While it’s not uncommon for a mining company to incur more operating costs than a service-based company like Amazon, the stock price is largely tied to statistics like revenue and profit. 

Decreasing Quarterly Profit: Everything we’ve discussed is all well and good but a company is run for one reason, profit. Over the past four quarters, Barrick Gold’s gross profit has been continuously decreasing. It’s fallen from $1.465B in Q4 2020 to $1.058B in Q3 2021. While some of this can be attributed to the pandemic, we would hope to see this trend reversed over the next few quarters, otherwise, it’s likely the value of Barrick Gold is set to decrease further. 

Sibanye-Stillwater Ltd (SBSW)

Sibanye-Stillwater Ltd (previously called Sibanye Gold Ltd) is a precious metal mining company with operations all over the Americas and Africa. While gold makes up the majority of their earnings, they also mine platinum, palladium, copper, and lithium. Overall, Sibanye-Stillwater has been increasing revenue, profits, and growing rapidly, making it a great contender for the title of “best gold mining stock”. If they can keep this up Sibanye-Stillwater will likely see great success and we’ll see a large uptake in share price. 

Advantages

Thanks to their diversification Sibanye-Stillwater could definitely be a great gold mining stock to buy for beginners. Their financials are solid and they seem to be quickly increasing their production scale, meaning we could be set to see an increase in stock price soon. Here are a few reasons why Sibanye-Still water might be the best gold mining stock right now. 

Multiple Assets: While many of the best gold mining stocks are heavily tied to the production of gold, Sibanye-Stillwater has managed to somewhat break free from these reigns. Outside of gold, they mine a variety of assets including platinum, palladium, and rhodium. As a result of their diverse mining operations, they’re not tied solely to the price of gold and if it were to fall in value, they could simply ramp up their other operations to offset any losses. 

Lithium: The electric vehicle sector has been booming in recent years. With technology catching up to consumer needs, the production of EVs has increased significantly. This has led to an increased demand for lithium hydroxide, one of the main components in batteries for electric cars and coincidentally one of the main assets Sibanye-Stillwater produces. As EVs become the standard for transportation, the demand for lithium is set to increase, as are Sibanye-Stillwater’s profits. 

Disadvantages

No matter how good a stock seems on paper, it’s always crucial to thoroughly analyze the negatives and factor them into your decision-making process. To help you with this, we’ve broken down one of the main negatives to buying Sibanye-Stillwater stock. 

Slow Stock Growth: Although Sibanaye-Stillwater has been steadily increasing its profits and revenue over the past few years, its stock price has remained largely the same. While this could simply be a sign the stock is undervalued, it’s worth considering, especially if you’re looking to buy a gold mining stock for a short/medium-term investment. Over the past year, Sibanye-Stillwater’s stock price has fallen from $5181 to $5,071, a decrease of around 2%. 

VanEck Gold Miners ETF (GDX)

In terms of assets, the VanEck Gold Miners is the largest ETF focused on gold mining stock. They currently manage $14.6B worth of assets. The largest companies within the fund (by weight) are Newmont Corp (13.38%), Barrick Gold Corp (10.56%), and Franco-Nevada Corp (8.09%).  

Advantages

If you’re worried about losing money, ETFs offer a great alternative to directly buying stock. They are generally considered to be less risky than stocks and a better way of saving for the long-term (retirement, etc). So to help you decide if investing in the VanEck Gold Miners ETF is right for you, we’ve broken down some of the main benefits below. 

Low Risk: Generally speaking, gold mining ETFs carry less risk than directly buying gold mining stock. This is because they contain a range of assets, meaning, if one underperforms, the rest of the assets in the fund will balance out any losses. Due to this, buying gold mining ETFs can be ideal for beginners or those that can’t afford to take on much risk. 

Dividends: While HODLing can be an excellent strategy to accumulate long-term wealth, having some positive cash flow always helps. This is where dividend-paying stocks come into play. By ensuring part of your portfolio will pay you dividends you can enjoy regular payments, which can then be reinvested or used to purchase things you need. The VanEck Gold Miners ETF currently pays around $0.19 per share. 

Disadvantages

Low Reward: As the saying goes “with risk comes reward”. This remains true in the world of stocks. Over the past year, the VanEck Gold Miners ETF has fallen from around $34 to $33. While this is far from ideal if we zoom out to the 5-year returns we see a rise from $20 to $33, an increase of more than 55%. While these returns sound alright, they’re often overshadowed by the returns offered by buying gold mining stock directly.  

How to Buy Gold Mining Stocks with eToro

Learning how to buy gold mining stocks can be an arduous task, brokerages will often throw tonnes of jargon at you expecting you to know everything from the get-go. So to ensure our readers aren’t wasting their time getting to grips with an overly complex platform, we’ve provided a detailed explanation covering precisely how to buy gold mining stocks for beginners with leading brokerage, eToro. 

Step 1: Open an account with eToro

Before you can buy gold mining stocks, you’ll first need to register with a reputable broker. eToro blends security, features, and ease of use together into one neat package. To create an eToro account just type “eToro.com” into your browser, press “Join Now”, and fill in the form. 

68% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Verify your account

As a regulated broker, eToro needs to comply with strict laws surrounding money laundering, this provides several security benefits for customers but means you’ll need to verify your identity. Luckily, this process is simple, all you’ll need at hand is a photo ID (passport, driving license) and proof of address (bank statement, utility bill). 

Step 3: Fund your account

Once your account has been verified, you’re only one step away from buying gold mining stock. However, before that, you’ll need to fund your account. To do this just click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro supports deposits using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill). 

Step 4: Buy Gold Mining Stocks!

As soon as the funds have arrived in your account, you’re ready to buy gold mining stocks! Just type the name of the asset you’d like to purchase into eToro’s search bar, press “Trade”, enter the number of shares you’d like to buy, and press “Open Trade”. You can view, manage, and close your position from the “Portfolio” section of your account. 

Conclusion

The gold industry is huge. Gold itself has been viewed as a status symbol and solid investment for years, however, many savvy investors prefer buying gold mining stocks. Companies that produce gold tend to do well when the value of gold is increasing (makes sense, right?) However, they’re also able to weather the storm when gold is performing badly. This is because as long as their production costs decrease or volume mined increases, they’re able to offset any losses that would’ve occurred due to gold losing value. Ready to buy gold but unsure of which broker is right for you? eToro blends together simplicity, power, and security to provide users with a top-of-the-line trading experience, and best of all, they support every gold mining stock we’ve discussed today! Meaning, you can start investing right away! 

eToro – Best Broker to Buy Gold Mining Stock

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$50Exclusive promotion
Our score10
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors
0% Commissionstart TradingOur score 10

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About Jay Leonard PRO INVESTOR

Jay is a UK based cryptocurrency expert, specialising in fundamental analysis and medium to long term investments. He has a great deal of hands on experience in the space and a current focus on institutional adoption.