What Are Gold Stocks?
Gold stocks refer to publicly listed companies that are active in the gold sector. They are primarily involved in the exploration, extraction, and refining of gold. The recent adoption of AI has opened the path for services companies that use AI to discover deposits. Gold storage companies provide an alternative method for indirect gold exposure. Still, investors should focus on exploration, extraction, and refining of gold via established and junior gold miners.
Why Should You Consider Investing in Gold Stocks?
Gold has always held fascination as a wealth and status symbol, but gold stocks also offer numerous practical benefits, and investors should consider adding them to their portfolios. Gold outperforms during economic uncertainty and geopolitical risk events, which adds downside protection to equity portfolios. Gold stocks also offer an inflation hedge and outperform during periods of US Dollar weakness.
Here are a few things to consider when evaluating gold stocks:
- Invest in a combination of established gold miners for stability and dividends, and junior miners, which carry greater risks but offer notable upside potential
- Analyze gold reserves of gold miners to gauge the longevity of their operations
- Focus 75% of your portfolio on gold stocks with mining operations in the top ten countries for gold production, with the remaining 25% on exciting global projects
What Are the Downsides of Gold Stocks?
Volatile gold prices pose the most notable risk, as they directly impact the profitability of gold stocks. While the last three years have witnessed high gold prices and all-time highs, which encouraged exploration and higher dividend yields, other periods have seen depressed prices. Long-term, gold is likely to march higher as the current global economic and political landscape faces graver risks than any period in the past seventy years.
Here is a shortlist of attractive gold stocks:
Caledonia Mining Corporation (CMCL)
Idaho Strategic Resources (IDR)
Newmont Corporation (NEM)
SSR Mining (SSRM)
New Gold (NGD)
McEwen Mining (MUX)
AngloGold Ashanti (AU)
Coeur Mining (CDE)
Kinross Gold (KGC)
Gold Fields (GFI)
Royal Gold (RGLD)
Hecla Mining (HL)
DRDGold (DRD)
Contango Ore (CTGO)
Seabridge Gold (SA)
Caledonia Mining Corporation Fundamental Analysis
Caledonia Mining Corporation (CMCL) owns a 64% stake in the gold-producing Blanket Mine, and 100% stakes in the Bilboes Sulphide Project, the Motapa, and Maligreen gold mining claims, all located in Zimbabwe. The Blanket Mine produces 75,000 to 80,000 ounces of gold annually.
So, why am I bullish on CMCL after its 50%+ rally?
The current annual output with gold at record highs offers an excellent free cash flow that CMCL can reinvest in its Bilboes Sulphide Project, the Motapa, and Maligreen gold mining claims. Caledonia Mining Corporation has outstanding returns on assets, equity, and invested capital. Its profit margins also rank among the best in the industry. Its latest earnings report featured record-breaking production numbers, valuations are cheap, and the dividend yield is a bonus for investors.
Caledonia Mining Corporation Fundamental Analysis Snapshot
The price-to-earnings (P/E) ratio of 14.80 makes CMCL an inexpensive stock. By comparison, the P/E ratio for the S&P 500 is 29.07.
The average analyst price target for CMCL is 27.50. It suggests no upside potential based on analyst estimates, but I expect upward revisions following its blockbuster earnings report.
Caledonia Mining Corporation Technical Analysis
- The CMCL D1 chart shows price action breaking out above its ascending 0.0% Fibonacci Retracement Fan level
- It also shows Caledonia Mining Corporation pushing above the upper band of its bullish price channel with increased upside momentum
- The Bull Bear Power Indicator has been bullish for over four weeks
My Call
I am taking a long position in CMCL between 26.70 and 28.54. Caledonia Mining Corporation reported a blockbuster quarter; gold prices are likely to push higher, and valuations remain cheap for this junior miner. The bullish trading volumes and momentum suggest more upside.
AngloGold Ashanti Fundamental Analysis
AngloGold Ashanti (AU) is a global gold mining company with eleven operations in Argentina, Australia, Brazil, the Democratic Republic of the Congo (DRC), Egypt, Ghana, Guinea, and Tanzania. It also has greenfield projects in Colombia and the US, as well as greenfield exploration in Argentina, Australia, Brazil, Egypt, Tanzania, and the US. It is the 7th largest gold miner based on 2023 production.
So, why am I bullish on AngloGold Ashanti after its 140%+ rally in 2025?
I like the AU acquisition of Egyptian gold producer Centamin, as it boosted reserves and production potential thanks to the large-scale, long-life, world-class Tier 1 Sukari mine and its 500,000 ounces annualized production capacity. Gold production for AU surged 21% year-over-year to 804,000 ounces in the second quarter of 2025. Valuations are attractive, and AngloGold Ashanti boasts superb operating statistics that should propel its share price higher.
AngloGold Ashanti Fundamental Analysis Snapshot
The price-to-earnings (P/E) ratio of 15.81 makes AU an inexpensive stock. By comparison, the P/E ratio for the S&P 500 is 29.07.
The average analyst price target for AngloGold Ashanti is 54.17. It suggests no upside potential based on analyst estimates, but I expect upward revisions following its latest production data.
AngloGold Ashanti Technical Analysis
- The AU D1 chart shows price action between its ascending 0.0% and 38.2% Fibonacci Retracement Fan
- It also shows AngloGold Ashanti inside a bullish price channel
- The Bull Bear Power Indicator has been mostly bullish since the second week of August with an ascending trendline
My Call
I am taking a long position in AngloGold Ashanti between 58.83 and 60.36. AU is an excellent dividend stock, and it has significantly improved its annualized production capacity while adding to its reserves. I also like the diversification of its operations and see more upside ahead.
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