3 Top Gold Stocks to Buy in December for Diversification

Here are three top gold stocks every long-term investor may want to consider right now for diversification and defensiveness.

Gold bars

Image source: Getty Images

As the TSX continues to hover around all-time highs, investors who have stuck with a buy-and-hold strategy over the long-term continue to be rewarded. Indeed, the performance of the market has been nothing short of spectacular. However, having some allocation dedicated to gold stocks or other market hedges is always a good idea.

For those seeking diversification, here are three top gold stocks to consider right now.

Top gold stocks: Barrick Gold

Barrick Gold (TSX:ABX)(NYSE:GOLD) continues to be a top gold pick, and rightly so. It looks undervalued to me when compared to the price action of the metal. Gold trades at around US$1,800 during the time of writing, up from around $1,725 in September, and analysts expect this to continue through 2021 and continue going into 2022.

Indeed, gold is used to hedge inflation risks. Accordingly, demand from both individuals and investors is likely to rise. For Barrick, the price of gold is down by almost 40% from its 2020 highs, despite gold being off by about only 15%. Moreover, the company has a robust balance sheet, courtesy of several years of non-core asset sales and high profits from rebounds in gold prices.

That said, Barrick is poised to turn the tables around with fewer disruptions in the supply chain and operations. With indications the company will boost its gold productions due to multiple acquisitions, alongside reducing carbon emissions by 25%, there’s a lot to like about this gold miner. All things considered, Barrick is an ideal gold stock that has tremendous potential to outperform its peers in the case of a market correction.

Agnico Eagle 

Agnico Eagle (TSX:AEM)(NYSE:AEM) is another behemoth in the gold sector. The company is gearing up for a merger with Kirkland Lake Gold — a deal that should prove to be lucrative once gold prices start gaining momentum.

Agnico is a top-notch operator, managing operational costs well, despite facing the brunt of foreign exchange headwinds. Riding on the back of higher production, Agnico Eagle was able to keep overall expenses low this past quarter. Moreover, the company’s management team also updated its investors that its Odyssey underground project’s development is also on schedule and on track to meet budget.

Indeed, Agnico Eagle is a gold miner that has been able to deliver excellent revenue and earnings growth. Coupled with a decent dividend yield of around 2.5%, Agnico looks like a top gold play for 2022.


Newmont (TSX:NGT)(NYSE:NEM) is my third pick today. The company dabbles in copper, gold, and zinc in reserves located across the globe, including in North and South Americas, Australia, parts of Africa, with total reserves estimated to stand at around a whopping 94 million ounces. Its management is looking to achieve an average of eight million ounces a year for the next decade. So, it is expected that its gold business will remain strong moving on to the next few years.

Indeed, the company was able to generate nearly $730 million in cash flow along with a revenue of $2.9 billion and is on track for double-digit EPS this year. This is after significant production troubles in several of its mining sites due to pandemic induced restrictions and supply chain disruptions.

However, I think the outlook on this company will only improve in the coming years. Newmont trades at a reasonable valuation of less than 15 times FY2023 earnings estimates. Accordingly, this gold stock is one I think investors would do well to consider right now.

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 Chris MacDonald owns shares of Kirkland Lake Gold Ltd. The Motley Fool has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

A stock price graph showing growth over time
Metals and Mining Stocks

Why Cameco Stock Soared 23% This Year

Cameco stock continues to ride high on strong supply/demand fundamentals and growing momentum in the nuclear industry.

Read more »

growing plant shoots on stacked coins
Stocks for Beginners

1 Copper Stock to Buy as Copper Prices Shine

The price of copper continues to climb, and more copper production is on the way for this top stock up…

Read more »

silver metal
Metals and Mining Stocks

Buy the Dip: 1 Dividend Stock Due to Shine

This dividend stock's dividend just rose higher as the price of silver dropped, but don't let that scare you off…

Read more »

Metals and Mining Stocks

Iron Stomach? 2 Riskier Stocks That Could Pay Off Big Time in the Future

Two TSX stocks could deliver greater earnings to investors with higher risk appetites.

Read more »

Gold bullion on a chart
Metals and Mining Stocks

This Gold Stock Just Dipped 5%: Time to Buy?

This gold stock has been rising higher and higher but recently went through a 5% dip in share price. So,…

Read more »

Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)
Stocks for Beginners

Pan American Silver: Buy, Sell, or Hold?

PAAS stock (TSX:PAAS) is up 44% in the last year alone! But it's not all down to the rise in…

Read more »

Nuclear power station cooling tower
Metals and Mining Stocks

1 Canadian Mining Stock Worth a Long-Term Investment

Strong fundamentals should continue to boost Cameco stock's long-term outlook, as the nuclear industry's momentum continues.

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

Lundin Mining Stock: Buy, Sell, or Hold?

Lundin (TSX:LUN) stock saw its shares surge this last year with the price of copper, and more strong guidance could…

Read more »