Gold hits record prices: which 3 stocks are benefiting?
In 2024, gold is experiencing extraordinary growth and its price has climbed to an all-time high. Investors are looking for safe havens in times of economic uncertainty, and gold is one of their main choices. What are the reasons for this sharp rise and how can investors profit from this trend?
The gold price has risen 33.5% in the past year, taking it to a new record high of $2,583.64 per ounce in September 2024. This sharp rise is the result of several factors, including falling inflation and expectations that the US Federal Reserve (Fed) will cut interest rates. Inflation is approaching the Fed's 2% target after a string of economic data suggesting slowing growth in the US economy. This is leading investors to look for safe ways to protect their investments from potential economic turmoil, and gold is often considered just such a safe haven.
Similar to gold, the price of silver has also been rising, increasing by more than 32% over the past year. Interestingly, the weakening US dollar and expectations of a change in the Fed's monetary policy have further boosted the price of these precious metals.
SPDR Gold Shares ETF $GLD-0.8%
SPDR Gold Shares
GLDOne way investors can take advantage of the rise in the price of gold is through the SPDR Gold Shares ETF (GLD). This fund tracks the price of gold without the need for physical ownership of the precious metal, and has a net expense ratio of 0.4%. The GLD's low expenses and ease of investing make it an attractive option for those looking to profit from the rising price of gold.
GLD is up nearly 27% in 2024, with the fund recently reaching new all-time highs. Strong investor interest suggests that growth may continue, as evidenced by the inflow of capital into the fund over the past three months.
Newmont $NEM-3.0%
Newmont Corporation (NEM) is the largest gold mining company in the United States, with a market capitalization in excess of $61 billion. The company has a global footprint and mines other metals in addition to gold, such as copper, silver and zinc, giving it some diversification.
Newmont shares are up nearly 33% in 2024, thanks in part to strong revenue and earnings growth. The company's dividend yields 1.88%, providing investors with steady income. Analysts expect the company's earnings to continue to grow, making it an attractive option for investors looking for a combination of growth and income.
Barrick Gold $GOLD-3.7%
Another major company in the gold mining sector is Canada's Barrick Gold (GOLD), which has a market capitalization of nearly $36 billion. In addition to gold, Barrick is also involved in copper mining, which has strong global demand.
Shares of Barrick Gold are up more than 13% in 2024, and the company offers a stable dividend of 1.95%. Barrick is also showing strong financial results, with its latest earnings report beating analysts' expectations, which, along with its diversified portfolio, makes Barrick an attractive option for investors looking to benefit from both growth and regular income.
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