Why Gold Stocks Are Getting a Second Wind in Canada

Gold just topped US$4,000, so here’s why Barrick and Equinox could be practical ways to ride the rally without owning bullion.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published October 8, 2025 4:20 pm EDT

| More on: ABXEQX

Key Points

Gold's surge is driven by inflation fears, low real yields, central-bank buying, and geopolitical risk that boost safe-haven demand.
Barrick (ABX) offers scale, strong free cash flow, buybacks, and a dividend, making it a lower-risk gold exposure.
Equinox (EQX) is higher-upside but riskier, growing through acquisitions with production ramps and higher debt to monitor.

Well, it happened. The price of gold has surged all the way past US$4,000 per ounce as of writing. But there’s a lot to unpack here. First off, the reason behind the price of gold rising is more from macro effects as well as institutional demand, making gold a safe-haven asset.

Persistent inflation and the prospect of low or negative real yields make gold more attractive as a store of value. Trade tensions, conflicts and global risk also push investors towards the material. Plus, the central bank is buying, increasing gold reserves as a form of diversification.

But that doesn’t necessarily mean investors should pour all their cash into gold. Yet it doesn’t mean you should ignore it either. That’s why today, we’re going to look at two investments where investors can benefit from gold, while still seeing future growth.

ABX

First up, we have a gold stock that’s long been a safe investment, no matter the market. Barrick Gold (TSX:ABX) is one of the world’s largest gold and copper miners, with large operations across Nevada, Canada, Latin America, and Africa. Its strength was recently seen during the second quarter, with gold production up 5% over the first quarter, and copper production up 34%!

What’s more, operating cash flow hit $2.5 billion in the first half of 2025, with free cash flow up a whopping 107%! Barrick went on to repurchase $268 million in stock in the second quarter, approving a $0.15 per share quarterly dividend. And with Donlin interest selling for $1 billion, and drilling programs underway, there is continued expansion for investors to watch.

What investors should like about Barrick stock is its material free cash flow growth, substantial buybacks, and the dividend. It shows that management is actively converting improved commodity prices into operational gains and shareholder returns. And that doesn’t look like it’s slowing down, with a pipeline of projects coming through and a solid reserve. Altogether, Barrick stock is having a solid second wind that investors can collect on.

EQX

Then we have Equinox Gold (TSX:EQX), a multi-asset gold producer rapidly scaling through acquisitions and greenfield development. It holds operating mines in Canada, Brazil, the U.S., and Central America, with a focus on growing to top-tier scale. This focus came about during its second quarter, with consolidated production of 219,122 ounces, including from its recent acquisition of Calibre Mining.

Mining rates in the quarter rose 23% quarter over quarter, with cast costs per ounce at about $1,478, improving from the first quarter. While it still holds net debt of $1.37 billion, management stated the third quarter should be a major inflection with full contributions from Calibre as well as its Valentine mine.

Overall, there is a lot of scale coming down the pipeline thanks to its acquisitions as well as near-term production inflection. The company has also seen operational improvement, and cash flow and portfolio actions have increased its strength as a miner. Altogether, Equinox stock looks like a strong gold stock, only getting stronger from recent acquisitions now online.

Bottom line

Together, these are a powerful pair of gold stocks. Barrick offers a lower risk second wind thanks to multi-asset production improvements and strong free cash flow, as well as benefits from buybacks and dividends. Equinox, meanwhile, has a possible second wind, though with a higher upside. Though these hinge on rapid, successful ramp-ups of recent acquisitions. So, as always, be sure to consider your own investment needs and risk tolerance before making any investment.