Want to Invest in Gold? Here’s the Best Way to Do it in 2024

Agnico Eagle Mines (TSX:AEM) and another gold stock are worth adding to your watchlist this winter.

| More on:
gold stocks gold mining

Image source: Getty Images

With gold prices creeping higher again amid macro uncertainties and hopes for (much) lower interest rates in the near future, it’s hard not to find Canada’s top gold mining plays intriguing. Undoubtedly, gold falls short of stocks when it comes to long-term returns.

That said, I view gold as an intriguing hedge for a portfolio that’s already diversified (in stocks and/or bonds and other fixed-income securities). With many investors looking to play gold for a potential breakout, investors may wish to hedge their bets with some of the gold plays while they’re still trading at a relative discount.

Indeed, there are many ways to play gold. You could head to your local gold dealer and purchase physical bullion. But then, you’ll have to ensure it’s securely stored, perhaps paying someone to hang onto your bullion. Personally, I’m a big fan of the mining plays right here while they’re trading at some pretty fair multiples.

Of course, mining plays can be more of a leveraged way to play a “safe” asset. And though the extra volatility (based on moves in gold prices) may not be everybody’s cup of tea, I think that the miners are worth betting on if you seek greater potential rewards.

At this juncture, with gold prices just north of US$2,000 per ounce, I view the top miners as a potentially more value-conscious way to bet on gold. Additionally, you may get paid a fat dividend, depending on which mining stock you select to stash in your portfolio.

Without further ado, let’s look at two gold stocks that I believe are among the best ways to bet on gold for 2024 and beyond.

Agnico Eagle Mines

Agnico Eagle Mines (TSX:AEM) is a wonderful value option, with shares going for around $66 per share. With a magnificent 3.2% dividend yield, AEM stock is also one of the richest yield plays in the gold-mining arena.

So, if you want to get paid to wait for gold to really shine, shares of AEM seem to be the best of the batch. Management has been solid, and past merger and acquisition moves could help unlock additional value for long-term shareholders.

More recently, the firm bought a minority position in Canada Nickel. Indeed, Agnico may be a gold-heavy miner, but gold isn’t the only thing the firm mines. The small investment in Canada Nickel is a relative drop in the bucket for the firm. However, over the long term, I think Agnico Eagle got a great bang for its buck. Either way, AEM stock is a stellar option for Canadian value hunters with an appetite for big passive income.

Barrick Gold

Barrick Gold (TSX:ABX) is another Canadian miner that has a generous dividend yield (sitting at 2.56% right here). The stock has been a choppy ride in recent years but seems too depressed, given how far gold prices have climbed in recent quarters.

Undoubtedly, Barrick stock could catch up in a big way as gold prices look to blast off even higher from here. The $36.9 billion company is quite sizeable and stands out as one of the cheaper ways to expose yourself to gold. Hedge or not, Barrick is a great value play going into February 2024.

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 Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Metals and Mining Stocks

bulb idea thinking
Stocks for Beginners

Cameco Stock Could Pop After Earnings: Is It a Buy Beforehand?

Cameco stock (TSX:CCO) has seen shares increase substantially in the last year, but is it all due to higher spot…

Read more »

value for money
Metals and Mining Stocks

1 Growth Stock Down 57% to Buy Right Now

Growth stock FM (TSX:FM) is a strong option for those wanting in after a major fall during the last year,…

Read more »

tsx today
Metals and Mining Stocks

TSX Today: What to Watch for in Stocks on Friday, February 2

Labour market data from the United States and corporate results will remain on TSX investors’ radar today.

Read more »

tsx today
Metals and Mining Stocks

TSX Today: What to Watch for in Stocks on Thursday, February 1

Weak metals prices could drive TSX mining stocks lower at the open today, as investors continue to digest the Fed’s…

Read more »

A miner down a mine shaft
Metals and Mining Stocks

2 Top TSX Mining and Materials Stocks to Buy for February 2024

Here are two of the best dividend-paying TSX mining and materials stocks you can buy in February 2024.

Read more »

tsx today
Metals and Mining Stocks

TSX Today: What to Watch for in Stocks on Monday, January 29

TSX stocks may remain volatile, as investors shift their attention to the latest corporate earnings.

Read more »

tsx today
Metals and Mining Stocks

TSX Today: What to Watch for in Stocks on Friday, January 26

As the market continues to fluctuate between ups and downs, the TSX Composite benchmark just reached its highest closing level…

Read more »

Gold bars
Metals and Mining Stocks

Could IAMGOLD Stock Help You Retire a Millionaire?

IAMGOLD (IMG) stock could add more gains to a recent 15% rally. But its Côté Gold project's success may not…

Read more »