Much of the chatter on Wall Street so far this year has been about the phenomenal rise of Bitcoin. The cryptocurrency has exploded almost 78% higher since the beginning of the year. While great for Gen Z traders, Bitcoin holds little store of value for many investors, and if the electric grid and the internet ever go down, Bitcoin could be in big trouble.
One asset that has held its value for centuries is gold. It has risen quietly to just below the all-time highs that were printed in 2020 and 2022. One of the best ideas for worried investors has always been to seek positions in commodities, and the best areas for investors to look at are the top gold miners and royalty companies. While gold has exploded higher in 2023 as the worries of a financial sector meltdown have lingered, it has backed up some recently, offering investors another chance to grab the glittering bullion.
This is what Citigroup had to say about the outlook for gold going forward: “We upgrade our 2023 and quarterly baseline bullion price forecast to be more consistent with our published 0-3 month and 6-12 month topside point-price targets of $2,100/oz and $2,300/oz.” Citigroup also noted that investor positioning has lagged the recent move higher. On the macro front, the bank sees lower nominal and real yields, a weak U.S. dollar trend and tail hedge overlays all as supportive for a higher average gold price range going forward.
We screened our 24/7 Wall St. gold mining research universe looking for the top stocks, and the following six are rated Buy, come with respectable dividends and look like great ideas for worried investors now. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Agnico Eagle Mines
This is one of Wall Street’s most preferred North American gold producers. Agnico Eagle Mines Ltd. (NYSE: AEM) is a senior Canadian gold-mining company that has produced precious metals since 1957. It primarily produces and sells gold deposits, as well as explores for silver, zinc and copper deposits.
Its eight mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these regions, as well as in the United States, Sweden, Latin America and Australia. Its flagship property comprises 100% owned LaRonde mine located in the Abitibi region of northwestern Quebec.
The company and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983.
Shareholders receive a 2.75% dividend. The BofA Securities price target on Agnico Eagle Mines stock is $60, and the consensus target is higher at $62.98. Shares ended Monday trading at $57.49 apiece.
Barrick Gold
This is another top company in the sector, and its stock still offers a very solid entry point. Barrick Gold Corp. (NYSE: GOLD) and Randgold Resources completed their merger on January 1, 2019. This created the world’s largest gold company in terms of production, reserves and market capitalization.
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