2 Gold Miners to Hedge Your Portfolio With

Physical gold, while a strong hedge against market downturns and inflation, can be difficult to invest in and manage. Gold miners offer a decent alternative.

Gold is usually the first asset class investors look into when they need to hedge their portfolios against negative market dynamics or inflation, even though there are more contrarian options nowadays (including crypto).

What’s ironic is that it might be part of both the cause and the effect when it comes to the gold stocks soaring higher during the pandemic. However, gold’s ability to retain its value is usually the primary catalyst.

But even though gold and gold stocks offer good returns only under specific market conditions, they can still be of great use, even for long-term investors. They can anchor the portfolio during market downturns and prevent it from plummeting.

And if you are amiable to a short-term holding, these stocks can offer better returns in a couple of years than many linear growth stocks in half a decade.

With that in mind, there are two gold miners you should look into.

A mid-cap gold miner

With a market capitalization of $3.4 billion, Vancouver-based Equinox Gold (TSX: EQX)(NYSE:EQX) is a mid-cap gold miner with an entirely Americas-focused portfolio of gold-producing assets. This is somewhat different from larger gold miners, many of which have extensive operations in Africa. It has mines in Canada, the U.S., Mexico, and Brazil.

Another point (apart from a geographically diversified portfolio) in this gold miner’s favour is that the insiders hold a huge number of its shares. This shows the confidence of the people working for/with the company in its profitability and long-term potential. The company also has minimal debt and enough cash/short-term investments to balance out the debt.

It doesn’t pay dividends, but its capital-appreciation potential is quite promising during both troubled and bull markets. The stock saw a steady rise between the end of 2018 and before the 2020 crash (about 180%). After the market crash, the stock rose over 90% in fewer than six months.

A small-cap gold miner

Calibre Mining (TSX: CXB) has been around for a relatively long time, and its stock has seen strong up and down tides in the last two decades. However, the last time the stock traded in double digits was in 2004. Still, it managed quite powerful growth spurts when the market conditions were favourable. In the previous five years alone, it has seen two major and two minor growth phases.

The major growth phases pushed the value up over 170% and 400%, respectively, and the second one took fewer than nine months. The smaller growth spurts were for about 50% and 40%, respectively, and the second one is still going on.

The stock is also quite attractively valued right now, and if it’s anything like its last major growth run, you might consider buying this mid-tier producer.

Foolish takeaway

Not all gold stocks are worth buying only during a market crash. The bull market performance of the two gold stocks above indicates that the right gold stocks can offer adequate growth during healthy markets as well.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

financial chart graphs and oil pumps on a field
Stocks for Beginners

What $10,000 in Freehold Royalties Could Add to Your Income Over a Year

Freehold could produce about $634 in annual income from a $10,000 budget, with commodity prices still influencing the payment.

Read more »

copper wire factory
Stocks for Beginners

Ivanhoe Sits on 43,000 Tonnes of Unsold Copper as Prices Stay High: Is the Stock a Buy?

Ivanhoe holds 43,000 tonnes of unsold copper at Kamoa-Kakula. Does this make the miner a buy for your portfolio right…

Read more »

top TSX stocks to buy in november 2026
Metals and Mining Stocks

Top Motley Fool Stocks to Buy in November 2026

Unbridled optimism is now being served with a dose of skepticism, and you know what that means: It's time to…

Read more »

todder holds a gold bar
Metals and Mining Stocks

Alamos Gold Tumbled 12.5% in 5 Days: Should Gold Investors Be Worried?

Alamos Gold fell 12.5% in five days after Q3 results and slipping gold prices. See what went wrong at Island…

Read more »

telecom towers concept for wireless technology
Stocks for Beginners

Europe’s Carbon Border Tax Could Reshape Canadian Steel: This Producer is Spending to Get Cleaner

Algoma’s electric-furnace transition could improve its competitive position, while current losses make this a recovery investment.

Read more »

A plant grows from coins.
Stocks for Beginners

European Financing Is Coming for Canadian Resources: This Copper Stock Has the Scale to Benefit

Teck offers producing mines and a development pipeline, while new European financing still needs approved borrowers.

Read more »

panning for gold uncovers nuggets and flakes
Metals and Mining Stocks

Why Gold, Silver, and Copper Miners Keep Sliding, and What It Means for TSX Mining Stocks

Falling precious-metal prices have rattled TSX miners, but these two producers still offer strong long-term potential.

Read more »

quantum correlation
Stocks for Beginners

Europe Wants Canada’s Critical Minerals: This TSX Stock Already Makes the Finished Product

Neo has started shipping the magnets Europe needs, giving investors something tangible behind the summit headlines.

Read more »