In 2023, the price of gold took off. Geopolitical tensions, a weakening U.S. dollar and expectations of rate cuts, and other key factors contributed to this move. Accordingly, investors who expect this trend to continue into 2024 may look for ways to play this trend.
Indeed, if gold prices rise, gold miners are one of the best ways for investors to play this asset class. That’s because most miners have the majority of their costs fixed, with revenue fluctuating in direct proportion to gold prices.
So, for those looking to invest in gold, here are three gold mining stocks I think are worth considering right now.
Agnico Eagle
Agnico Eagle (TSX: AEM) is amongst the largest players in the gold mining business. It has a presence in Canada, Mexico, Finland, and Australia. The company is involved in the production, development, and exploration of gold and other metals and minerals. Recently, Agnico has expanded its nickel investments in Canada through the acquisition of 19.6 million units of Canada Nickel Company.
In December 2023, Agnico Eagle Mines Limited announced the acquisition of 19 million units of Firefox Gold. The company now expects its gold production to improve and the price of gold to increase between US$840 and US$890 per share.
If global economic conditions worsen, the price of gold continues to rise. Last year, gold outperformed several asset classes, which were triggered by the U.S. Fed’s pausing interest rate hikes, economic slowdown, and other factors.
Barrick Gold
Barrick Gold (TSX: ABX) is amongst the largest gold producers in the world, with its mines situated in Africa, South America, North America, and Australia. The major chunk of the company’s revenue comes primarily from the Carlin mine in the U.S.
In 2023, gold was up by more than 10%, while the share price of Barrick Gold Corporation was just up by 3%. Hence, the stock price of Barrick Gold Corporation is expected to take an uptrend if the geopolitical tension rises, resulting in a surge in gold prices.
Moreover, the company is the largest gold producer in Africa and aims to increase its gold mine outputs by up to 30% in the years to come.
Newmont
Newmont (TSX: NGT) is one of the prominent gold mining companies engaged in the business of mining and exploration of gold. It is operational with open pit mining assets in Canada, the United States, Argentina, Ghana, Mexico, Chile, the Dominican Republic, etc.
Recently, investors have noticed a slight dip in the stock price of Newmont Corporation, making it a golden investment opportunity. Analysts are expecting year-over-year growth of 32% based on its upcoming earnings reports. In 2024, customers will face elevated interest rates and a rise in commodity prices, triggering an uptrend in gold investments.
Hence, this can be the best time to make an entry in the current price dip due to some change in short-term business patterns.
Bottom line
Agnico Eagle Mines, Barrick Gold, and Newmont are the top three stocks that are expected to skyrocket. Amidst situations like rising geopolitical tensions, economic slowdown, and rising inflation, these stocks are expected to take a massive up trend due to a surge in gold demand.
If the stars align like many gold bugs think is possible in 2024, these are three stocks that can go on a tear. At the very least, I think they’re worth putting on the watch list right now.
