Gold is still king when it comes to precious metals investment. While other metals, notably palladium, are enjoying an increase in attention from commodities investors this year, gold is still the classic choice for spreading risk in a portfolio. The following four gold miners represent some of the strongest choices for this traditional safe-haven asset, especially if high returns form a key part of a long-term strategy.
This gold stock has rocketed in three years
Investors looking to buy shares in a gold miner with an exceptional three-year track record should look no further than Kirkland Lake Gold, a favourite in commodities circles and a top pick for gold exposure. The popular miner has seen its share price rocket by a staggering +600% since 2016, giving shareholders looking for high returns over a relatively short space of time plenty to work with.
Kirkland Lake’s projection of up to a million ounces of gold output this year could lead to another price surge. Incorporating high-grade gold production across two strategic, cost-efficient projects in Canada and Australia, Kirkland Lake avoids some of the geopolitical tensions inherent in mining in at-risk zones while offering the opportunity for steep capital appreciation.
Pure-play Colombian and Canadian gold stocks have seen steep returns
For a play on Colombian gold, an investor should consider the high returns on offer from Gran Colombia Gold. The Canadian gold miner is a solid mid-tier choice for a pure play on the productive gold mines of Colombia. Drawing material from the Segovia and Marmato Operations, Gran Colombia is the most significant underground gold and silver miner in the region.
While picking up shares in a specific geographic location can introduced risk from overexposure, adding Gran Colombia to a mix of other gold stocks is a potentially lucrative play for some extra upside. Its significance in the region also adds some defensive clout. Investors seeking high returns from a gold investment should consider Gran Colombia’s share price growth of 178% over the past three years.
Canadian investors looking to buy gold stocks that offer a lot of growth over a long period of time should consider stacking shares in Wesdome Gold Mines. Newcomers to the TSX scanning through gold miners may not realize that this popular name in metals stocks comes with a three-decade track record of unbroken mining operations in the country.
Wesdome has a strong domestic focus, making it a good choice for investors wary of cross-border tensions or international trade disputes. Indeed, for a Canadian stock that is a pure-play not only on precious metals but also on nation of operations, Wesdome is a solid pick. Over the last three years, it’s grown its share price by 172%.
The bottom line
The three gold stocks listed in this article represent some of the highest-returning miners of precious metals on the TSX. For a play on safety and capital gains, it would be hard to find three better stocks to add to a portfolio light on commodities and built around growth.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Victoria Hetherington has no position in any of the stocks mentioned.