It is not a guaranteed thing, but it seems that historically, when gold prices rise, a downturn in the stock market typically follows. Gold prices have been doing really well throughout 2025. At the start of the year, the price of gold per ounce was around US$2,600. As of this writing, the rare yellow metal is worth around US$4,200 per ounce.
It might seem tempting to buy physical gold and take your money out of the market to let the value of your capital grow simply by holding gold. However, it makes your holdings relatively less liquid. If you suddenly decide to put your money back to work in the market, the time it takes to sell the gold, get the cash, and invest might be too long to leverage short-term trades.
I would advise investing in gold stocks instead. When buying gold stocks, you get exposure to gold prices through businesses related to gold without the illiquid aspect of buying gold bullion.
In my books, the ultimate gold stock to consider investing in is Barrick Gold (TSX: ABX).
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Barrick Gold
Barrick Gold is one of the top gold producers in the world. The $86.95 billion market-cap company engages in the production of gold, copper, and other precious metals. The company also has exploration and mining development operations. Throughout the year, gold prices have been on the rise. Higher gold prices mean better profit margins for gold producers. In turn, that can let the underlying business drive greater shareholder value.
Barrick Gold recently released its third-quarter earnings for fiscal 2024. The company reported a year-over-year growth of 31% in its quarterly earnings. The company’s adjusted earnings per share fell slightly below analyst expectations, but the dip has made it seem like a more attractive investment for those seeking undervalued stocks.
Rising gold prices and profit margins became quite apparent during the quarter. Barrick’s operating margins improved to 30.9%, displaying the company’s ability to control operational costs. As long as gold prices remain steady or keep rising, the company’s profitability should support substantial long-term growth in shareholder value.
Foolish takeaway
Barrick Gold also pays its investors quarterly dividends. As of this writing, Barrick Gold stock trades for $51.53 per share and pays investors US$0.175 per share each quarter, translating to a 1.9% dividend yield. While it might not offer high-yielding dividends, Barrick Gold stock offers the kind of capital gains to make up for it.
The company’s long-term outlook makes it seem like a solid investment right now. It is well-capitalized, has efficient operations, keeps improving its profit margins, and has what it takes to increase production through new projects and expansions. The rising demand for copper means its copper-producing segment will likely see more growth in the coming years.
Higher gold prices have resulted in an uptick in share prices for Barrick Gold stock, and I feel that there is more to come. It might be a good time to invest in its shares.
