Gold stocks are companies that mine, sell, or finance the extraction of gold. They could be companies that mine in rivers and dirt for nuggets, flakes, and gold dust. Or they could be streaming and royalty companies that give mining companies the funds they need to find gold (for a percentage of the revenues).
As we journey into 2025, the global economy continues to face a myriad of challenges and opportunities, with investors keeping a keen eye on the precious metals market. Gold, historically a safe haven in times of economic uncertainty, maintains its luster not only as a tangible asset but also as a strategic investment within diversified portfolios. The allure of gold stocks, in particular, stems from their dual potential for value preservation and growth.
Canada’s share of global gold production is around 6.7%. In 2024, Canada was the fourth largest producer of gold in the world, thus gold stocks have an important place in a Canadian investor’s well-diversified portfolio. Let’s look deeper at gold stocks and see if they’re the right fit for you.
2025 Gold Trends in Canada:
- Sustained Exploration and Development: With Canada maintaining its position as a leading gold producer, the year 2025 is expected to witness continued exploration activities, particularly in the mining-friendly terrains of Ontario, Quebec, and British Columbia. These provinces, known for their rich mineral deposits and supportive regulatory environments, will likely see increased investment in mining technologies aimed at boosting extraction efficiencies and reducing environmental footprints.
- Global Demand Surge: According to the World Gold Council, global demand for gold surged by approximately 8% in 2024. This was driven by increased jewelry purchases, central bank reserves, and investment inflows into gold-backed exchange-traded funds (ETFs). This trend is expected to persist in 2025, fueled by geopolitical tensions, inflationary pressures, and the transition towards greener technologies—sectors that heavily rely on gold for their electronic and renewable energy applications.
- Technological Innovations: The integration of advanced technologies, such as AI-driven exploration tools and more sustainable mining practices, is transforming the Canadian gold production landscape. These technological advancements not only enhance the operational efficiency of mining companies but also appeal to investors focused on sustainability.
- Green Energy Transition: The shift to green technologies heightens the demand for gold in electronic and energy applications. Canadian gold stocks benefit from this trend as sustainability becomes a priority.
- Inflation and Economic Hedging: With inflationary concerns looming on the horizon, gold continues to be a favored hedge against economic instability. Canadian gold stocks offer a refuge as investors seek safety nets to preserve wealth amidst fluctuating economic conditions.
- Geopolitical Influences: Geopolitical tensions across the globe in early 2025 has led to uncertain markets, driving investors towards safer assets like gold. Canadian gold stocks are poised to see increased interest as Canada is seen as a stable and reliable jurisdiction for mining investments.
What are gold stocks?
Gold stocks are mining companies that focus primarily on the extraction and sale of gold.
When you invest in gold stocks, you’re investing in businesses, not the physical metal. You’re not buying gold bullions or coins or jewelry or any other form of physical gold. You’re buying shares of a gold company, and you’ll profit only when the value of your gold stock rises.
Gold stocks don’t always follow the price of gold. In other words, just because gold prices are low doesn’t mean your gold stocks will suffer. More accurately, your gold stocks will follow the performance of the underlying mining companies themselves.
This is actually good news for investors — when gold does poorly in the market, many mining companies can switch their focus to another mineral, which could keep investors interested and prevent the company from losing revenue.
Of course, not all mining companies are a good buy for investors. For a gold company to be a good investment, it should have:
- High cash flow
- Low or no debt
- Low operating costs
- High gold production that increases every year
Like other mining businesses, gold companies can cave under immense mining costs, so you’ll want to evaluate gold companies before you invest in them.
But finding a good company does bring the possibility of striking it rich like the gold miners of yore. That’s because gold stocks can provide an immense growth opportunity for investors that physical gold could never promise.
Unlike an ounce of gold — which will always remain an ounce of gold — a gold mining stock has unlimited upside. That means gold companies with good financials and solid business practices could theoretically keep rising in value, especially during times of turmoil and uncertainty.
Top Canadian gold stocks
Canadian investors are in luck: Canada has some of the best gold stocks in the world. Among top-performers, here are just a few gold stocks you might want to consider from the Toronto Stock Exchange (TSX).
| Gold Stock | Description |
| Barrick Gold Corporation (TSX:ABX) | One of the largest gold mining companies in the world with operations in 18 countries |
| Agnico Eagle Mines (TSX:AEM) | Large gold mining company with cost-efficient operations |
| Franco-Nevada Corporation (TSX:FNV) | Gold-focused streaming and royalty company with a hefty dividend |
Barrick Gold
Barrick Gold (TSX:ABX) remains the most prominent gold stock on the TSX, a position built on operating long-life, high-production mines that keep costs low and output steady. This disciplined structure has supported the company’s global footprint and helped it outperform through multiple market cycles. In 2025, that strength has been amplified by a historic surge in gold, which has rallied nearly 60% from about US$2,620 to more than US$4,200 per ounce.
Shares of Barrick are up more than 120% year to date and recently broke above a new 52-week high as strong commodity prices and robust free cash flow lifted the stock. The company increased its dividend and buybacks following a solid third quarter, while rising gold prices pushed the basic materials sector to the top of the TSX in 2025. Gold briefly peaked above US$4,380 per ounce in late October, helping Barrick outperform the broader market by a wide margin.
Operationally, the company continues to deliver. In the first half of 2025, revenue and net earnings rose 15% and 93% year over year to $6.8 billion and $1.3 billion, respectively, while free cash flow jumped 107% to $770 million. Barrick maintains a strong balance sheet, an $80+ billion market cap, and a 38-year dividend track record supported by a performance-based payout framework. Copper production growth has helped balance lower gold volumes while preserving overall cash generation. This makes Barrick Gold not just a special large-cap stock, but a relatively safe one for investors.
Looking ahead, Barrick’s long-term project pipeline and asset quality remain major competitive advantages. Management expects to replace more than 80% of the gold it mines in 2025, backed by strong reserve additions and exploration success across North America, Latin America, Asia Pacific, Africa, and the Middle East. Flagship developments such as Nevada’s extensive mining complex and the Reko Diq copper-gold project in Pakistan reinforce its growth outlook. With a durable business model and significant exposure to gold’s safe-haven demand, Barrick continues to stand out as the premier large-cap gold stock on the TSX.
Agnico-Eagle Mines
Agnico-Eagle Mines (TSX:AEM) remains one of the strongest large-cap gold producers, supported by efficient operations and high-quality assets across stable regions such as Canada, the United States, Mexico, and parts of Europe. This geographic strength sets it apart from miners operating in higher-risk jurisdictions and provides a steadier production profile. With rising gold and commodity prices lifting the broader sector, Canadian miners are trading at appealing valuations, leaving room for meaningful multiple expansion if metals remain strong.
The company continues to deliver standout financial results. Recent quarterly revenue climbed 31.5% year over year to $2.156 billion, while net income surged 224% on the back of higher gold prices and ongoing efficiency gains. Agnico maintains strong fiscal discipline with a current ratio of 1.75 and low debt levels, reinforcing its financial stability. Even after a major share-price run — rising from roughly $50 in 2023–24 to more than $200 today — the stock still trades at attractive levels, including less than nine times price-to-sales and roughly 20 times forward earnings.
Operational excellence remains Agnico’s defining strength. Its high-grade, high-volume mines generate some of the lowest all-in sustaining costs in the sector, enabling the company to outperform the price of gold itself over the past year. With gold expected by many analysts to remain in the US$4,000–5,000 range, Agnico is positioned to keep driving earnings higher and potentially increase dividends, even with the current yield sitting near 1%. Compared with Barrick Gold, Agnico offers a more concentrated portfolio in top-tier jurisdictions, trading at similarly compelling valuations.
Franco-Nevada Corporation
Franco-Nevada Corporation (TSX:FNV) stands apart from traditional gold miners like Barrick Gold and Agnico-Eagle Mines because it doesn’t operate mines directly. Instead, it runs a high-margin streaming and royalty model, providing upfront capital to mining companies in exchange for a share of future production or revenue at favourable terms. This structure offers significant upside to rising gold prices while avoiding many of the operational risks, cost inflation pressures, and geopolitical hazards faced by miners.
The company’s recent results reflect this steady, resilient approach. Franco-Nevada reported $275.7 million in revenue in Q3 2024, down 10.9% year over year, but continues to project full-year revenue between $1.05 billion and $1.15 billion. Its debt-free balance sheet and highly diversified cash flows give it one of the strongest financial foundations in the sector — a key advantage as gold prices fluctuate. With beta around 0.59, it delivers far lower volatility than traditional miners, making it attractive for investors seeking more defensive exposure to precious metals.
Gold’s aforementioned surge above US$4,000 per ounce in 2025 has strengthened the investment case for streamers like Franco-Nevada. Streaming companies benefit in both directions: they can be repaid in cash if prices fall or receive metals at below-market rates when prices rise, giving them a more favourable risk-reward profile than miners, which face amplified downside when gold dips.
Franco-Nevada is also a dividend stock, and a lucrative one at that. It has increased the dividend every year since the IPO on the Toronto Stock Exchange in late 2007. During the recent bull market for gold, the dividends have soared.
Investing in gold stocks vs. gold ETFs
For investors who shy away from choosing individual stocks, there is another option. You can also buy shares in a gold-focused exchange-traded fund (ETF).
This may sound complicated, but it really just means you’re investing in a collection of gold-focused companies. Instead of buying stock in one company, an ETF spreads your money across numerous investments (a mutual fund works the same way.). A gold ETF can be a cost-efficient way to achieve diversification, as a single share in an ETF exposes you to many companies. Often you’ll get a mixture of gold mining companies, streaming companies, and perhaps even companies that sell the precious metal outright.
The difference between gold stocks and ETFs comes down to risk. Gold stocks, like any investment in the stock market, can be volatile, which might make risk-averse investors uneasy.
On the other hand, because gold stocks are volatile, the upside potential can be immense if they rise in value. Gold ETFs can rise in value, too, but because you own very small quantities of any individual gold company in an ETF, you’ll likely see smaller gains.
Some popular gold ETFs include:
- iShares S&P Global Gold Index ETF (TSX:XGD)
- SPDR Gold Trust (NYSEMKT:GLD)
- iShares Gold Bullion ETF (TSX:CGL)
Are gold stocks right for you?
Gold stocks have long been considered a safe-haven against economic downturns, inflation, market volatility, and geopolitical events. Gold prices have increased significantly since late 2023, reaching new highs and outperforming the S&P 500. Time after time, investors have flocked to gold during particularly tumultuous events, pushing up the demand for gold and the value of gold stocks. For that reason, gold stocks could have a strategic place in your portfolio, helping you stay grounded during volatile times.
That said, investors should note that cryptocurrency and other precious metals are also considered safe-havens, and, in fact, could challenge gold’s performance over the long run. But if the tumultuous events of 2022 have shown us anything, it’s this — gold is here to stay. Gold stocks were among the best-performing stocks of the year, and their strong performance tells us cryptocurrency hasn’t yet replaced gold as the primary safe-haven asset.
One of the best ways to look for gold stocks is to find companies whose costs and debts are low, and that don’t engage in risky mining projects. The stocks mentioned above are a good place to start, but if you want to dig further, look for gold companies that have lots of cash and a solid plan to expand production.
You might also want to consider royalty and streaming companies, as these companies often benefit from the price of gold, without taking on the risks of digging for it.