Is a gold stock a good long-term investment?

Gold stocks can be good long-term investments. For example, Franco-Nevada has outperformed the price of gold and the broader stock market since its initial public offering. However, not all gold stocks can deliver attractive investment returns due to the risks associated with mining, so investors need to choose their gold stock investments wisely.

Should I keep cash or gold?

The decision to keep cash or gold is a personal preference based on your beliefs about inflation, the economy, and the money supply. Over the long term, gold has outperformed cash. According to data from TradingView, the average annual return on gold has been 10.9% over the past quarter-century. Meanwhile, the average annual return on cash as measured by interest earned was 4.2%. However, the purchasing power of cash has steadily declined due to inflation.

What reasons are there not to invest in gold?

While there are many positive reasons to invest in gold, there are also several cons. These include the possibility that gold prices could fall; it's not always a great hedge against inflation or macroeconomic headwinds; and it can underperform stocks over the long term. Meanwhile, there are risks and costs associated with owning physical gold (e.g., insurance or theft). Investing in gold isn't for everyone. You should firmly believe that gold prices will rise before investing in gold.

What is the average return on gold stocks?

Over the last 20 years, the average gold mining stock has delivered a more than 5% compound annual return (as measured by the VanEck Gold Miners ETF). That has underperformed the price of gold (10.6% annualized return) and the S&P 500 (nearly 9% annualized return).

What if I invested $1,000 in gold 10 years ago?

If you invested $1,000 into gold a decade ago, that investment would be worth over $4,000 in early 2026 (a 300% or 15% annualized return).

Is it better to buy gold or gold stocks?

It's better to buy gold mining stocks rather than gold if your goal is to achieve returns that outpace gold's price over the long term (gold stocks have outperformed gold over the last decade, with an 18.2% annualized return compared to 14.9%). However, gold stocks are higher-risk investments and can underperform gold prices due to mining project cost overruns, excessive debt, and other issues. Given those risks, some investors might prefer to buy gold to earn returns matching its price gains before expenses.

Best Gold Stocks to Buy in 2026 and How to Invest

By Matthew DiLallo – Updated Mar 10, 2026 at 10:16 AM EST | Fact-checked by Robin Hartill, CFP

Key Points

Gold stocks provide investors with exposure to gold through mining, ETFs, and royalty companies.
Gold stocks can outperform physical gold as companies can increase production and profitability.
While investing in gold stocks can offer higher returns, they require careful selection due to higher risks.

Gold stocks are publicly traded investments that provide exposure to gold through mining companies, gold-focused ETFs, and streaming or royalty companies. Mining companies produce gold directly, while ETFs hold physical gold or baskets of gold mining stocks. Streaming and royalty companies finance mines in exchange for a share of future production or revenue.

Investors often turn to gold as a safe-haven asset during periods of inflation, geopolitical tension, or economic uncertainty. Those forces can make gold prices volatile, but they can also drive sharp rallies, as seen in early 2026 when gold surged amid inflation and global risks.

Gold stocks offer a different way to capture those moves. Unlike physical gold, gold companies can grow profits by expanding production and lowering costs, thereby generating higher returns. That upside isn’t guaranteed, though, making careful stock selection essential.

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Top gold mining stocks

Dozens of companies focus on mining gold, giving investors many options. Here are the top gold stocks to buy in 2026:

Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Barrick Mining (NYSE:B)	$68.0 billion	2.08%	Metals and Mining
Franco-Nevada (NYSE:FNV)	$43.5 billion	0.70%	Metals and Mining
VanEck ETF Trust - VanEck Gold Miners ETF (NYSEMKT:GDX)	$0.0 thousand	0.00%	Capital Markets
Newmont (NYSE:NEM)	$116.4 billion	0.93%	Metals and Mining
Agnico Eagle Mines (NYSE:AEM)	$90.3 billion	0.91%	Metals and Mining

Data as of May 16, 2026. Showing 5 of 5 tickers.

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1. Barrick Mining

NYSE: B

Barrick Mining

Today's Change

(-5.91%) $-2.55

Current Price

$40.61

Key Data Points

Market Cap

$68B

Day's Range

$40.06 - $41.73

52wk Range

$17.95 - $54.69

Volume

16M

Avg Vol

14M

Gross Margin

52.26%

Dividend Yield

2.08%

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Barrick Mining is striving to be the most valuable gold and copper mining company in the world. The Canada-based company focuses on operating Tier One mining assets, which Barrick defines as those with:

The ability to produce more than 500,000 ounces of gold per year.
At least 10 years of productive life remaining.
Low-cost operations as defined by total costs per ounce.

The company has a world-class portfolio with operations that span 17 countries and five continents. Barrick is also the largest gold producer in the U.S. The company announced plans in late 2025 to complete an IPO of its North American gold assets to maximize shareholder value.

Barrick expects to produce between 2.9 million and 3.25 million ounces of gold in 2026, as well as 190,000-220,000 tonnes of copper. The company sees the potential to grow its gold production to more than 3.4 million ounces by 2028 while increasing its copper output to more than 255,000 tonnes.

The company generated record cash flow in 2025, enabling it to strengthen its balance sheet to build a $2 billion net cash position. The company also had the financial flexibility to repurchase $1.5 billion in shares (3% of its outstanding shares) and significantly increase its dividend. Barrick set a new dividend policy in early 2026 to pay out 50% of its free cash flow in dividends.

2. Franco-Nevada Corporation

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NYSE: FNV

Franco-Nevada

Today's Change

(-5.30%) $-12.62

Current Price

$225.38

Key Data Points

Market Cap

$43B

Day's Range

$222.90 - $231.42

52wk Range

$152.89 - $285.67

Volume

1.1M

Avg Vol

821K

Gross Margin

76.56%

Dividend Yield

0.70%

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Franco-Nevada is a Canada-based gold-focused streaming and royalty company. It has a diversified portfolio, with agreements tied to gold, silver, the platinum group metals (PGMs), iron ore, and oil and gas. In 2026, over 80% of its revenue will come from gold and other precious metals.

A major benefit of Franco-Nevada's focus on royalties and streaming is that it reduces risk. It doesn't face the capital and operating cost overruns that have historically plagued mining companies. At the same time, Franco-Nevada's agreements position it to profit as its mining partners complete exploration and expansion projects.

Franco-Nevada's streaming and royalty contracts enable it to generate significant cash by selling the physical commodities it receives. That cash flow allows it to invest in new deals and pay a dividend.

Franco-Nevada has increased its dividend each year since its initial public offering (IPO) in 2008, reaching 19 consecutive years in 2026. The company also boasts a debt-free balance sheet -- a rarity in the mining industry -- giving it even more financial flexibility to invest in new royalty and streaming agreements. It had about $1.9 billion of available capital in early 2026 to invest in new royalty and streaming opportunities.

Because Franco-Nevada can profit from gold mining without exposure to the risks of mine development, its stock has historically outperformed the price of gold and other gold mining stocks. All of these factors make it an ideal way to invest in gold.

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3. VanEck Gold Miners ETF

NYSEMKT: GDX

VanEck ETF Trust - VanEck Gold Miners ETF

Today's Change

(-7.03%) $-6.60

Current Price

$87.35

Key Data Points

Day's Range

$86.83 - $89.55

52wk Range

$46.65 - $117.17

Volume

39M

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The VanEck Vectors Gold Miners ETF holds the stocks of large gold mining companies. It's one of the largest gold ETFs, with about $32.7 billion in assets as of early 2026, when the ETF held shares in more than 50 gold mining companies. VanEck's top five holdings by value were:

Agnico Eagle Mines (AEM -6.30%)
Newmont Corporation (NEM -6.25%)
Barrick Mining (B -5.91%)
AngloGold Ashanti (AU -9.88%)
Wheaton Precious Metals (WPM -6.37%)

The five gold stocks made up over 35% of the ETF's assets, with Agnico Eagle Mines accounting for 9.9%. Those top gold stocks have market capitalizations ranging from Newmont's $127 billion to AngloGold Ashanti's $55 billion. With the exception of Wheaton, these top holdings are the world's largest gold mining companies.

The gold ETF enables investors to easily own a diverse, high-quality group of large-scale gold companies. The ETF also has a reasonable expense ratio of 0.51%, making it a relatively cost-effective way to invest in many gold stocks.

4. Newmont

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NYSE: NEM

Newmont

Today's Change

(-6.25%) $-7.27

Current Price

$109.06

Key Data Points

Market Cap

$116B

Day's Range

$108.47 - $112.23

52wk Range

$49.99 - $134.88

Volume

11M

Avg Vol

9.4M

Gross Margin

55.12%

Dividend Yield

0.93%

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Newmont is one of the world's leading gold producers. It also mines copper, zinc, lead, and silver. Newmont has a dozen Tier One gold mining operations across eight countries.

In 2025, Newmont produced 5.7 million ounces of gold from its core portfolio and 5.9 million ounces overall. It also produced 28 million ounces of silver and 135,000 tonnes of copper.

Newmont has industry-leading gold reserves (118 million ounces) and resources (140 million ounces). It also has strong copper resources (13,000 tonnes) and resources (19,000 tonnes). The company's reserves support decades of production.

Newmont cashed in on higher gold prices in 2025 to generate a record $7.3 billion in free cash flow. It returned $3.4 billion to shareholders and repaid $3.4 billion of debt last year. Newmont also completed its non-core divestiture program, generating $4.5 billion in proceeds to strengthen its financial foundation, ending the year with a $2.1 billion net cash position.

5. Agnico Eagle Mines

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NYSE: AEM

Agnico Eagle Mines

Today's Change

(-6.30%) $-12.13

Current Price

$180.53

Key Data Points

Market Cap

$90B

Day's Range

$179.10 - $185.44

52wk Range

$107.18 - $255.24

Volume

129K

Avg Vol

2.5M

Gross Margin

60.15%

Dividend Yield

0.91%

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Agnico Eagle Mines is the largest mining company in Canada and the world's second-biggest gold producer. It operates mines in Canada, Australia, Finland, and Mexico.

Acquisitions have enabled Agnico Eagle to climb up the gold production leaderboard. In 2022, it completed a nearly $11 billion merger of equals transaction with Kirkland Lake Gold, adding several world-class mines to its portfolio. The company continued to consolidate the sector in 2023 with its acqustion ot Yamana Gold's Canadian assets. Agnico also bought O3 Mining in 2025.

The company produced over 3.4 million ounces of gold in 2025. Agnico Eagle expects to produce between 3.3 million and 3.5 million ounces of gold annually through 2028 at peer-leading costs. It has the resources and visible growth projects to increase production by 20% to 30% over the next decade, bringing it to over 4 million ounces.

Types of Gold Stocks

There are several different types of gold mining stocks:

Senior gold mining companies: Large-scale gold mining companies with operating mines that produce revenue.
Junior gold mining companies: Smaller golding mining companies and those with earlier-stage mining developments.
Gold streaming companies: These companies provide capital to gold miners to fund development and expansion projects. In exchange, they receive a percentage of a mine's future gold production at a discounted price.
Gold royalty companies: These companies provide capital to mining companies in exchange for a royalty (a percentage of a mine's revenue).
Gold ETFs: These investment funds invest in physical gold or gold mining stocks.

How to invest in gold stocks

Here's a step-by-step guide on how to invest in gold stocks:

Open your brokerage app: Log in to your brokerage account where you handle your investments.
Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Pros and cons of investing in gold stocks

Investing in gold stocks has benefits and drawbacks. Some of the pros include:

Potential outperformance: Investing in gold stocks can help investors benefit from a potential rise in gold prices. Gold stocks can outperform gold prices as mining companies increase production and profitability.
Inflation hedge: Gold stocks can help protect your portfolio from inflation.
Diversification: Investing in gold stocks can help diversify your portfolio and lower your risk profile.
Income: Many gold mining companies pay dividends, enabling investors to earn some income from a gold-related investment.

On the other hand, some cons of investing in gold stocks include:

Underperformance risk: While gold stocks can outperform gold, they also run the risk of underperforming it due to mine development cost overruns, financial issues, and mismanagement.
Market risk: Because gold stocks are publicly traded, they are subject to market risk. A broad stock market decline could cause gold stocks to fall.

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What to consider about investing in gold

There are lots of ways to invest in gold. Here are some factors to consider when evaluating the various options:

Gold mining companies: Gold miners benefit from rising gold prices and from their ability to increase production and reduce costs. Consequently, top gold mining companies can often outperform the price of gold. Investors should look for a top-tier gold miner that has a low cost structure, a manageable debt level, a visible production growth profile, and limited exposure to risky mining projects.
Gold streaming and royalty companies: These entities generally offer the best risk-reward potential among gold-focused investment options. They are well-positioned to benefit from higher gold prices without assuming the risks of mining physical gold. However, they often have lower upside potential compared to a mining company with a strong growth profile.
Gold ETFs: These funds are a more convenient and cost-effective way to invest in gold. A gold ETF offers broad exposure to the sector by either owning shares of gold mining companies or holding physical gold. A physical gold ETF is similar to owning gold bars or coins, while a mining ETF offers higher potential returns beyond the price of gold as the underlying companies increase production, though with a slightly higher risk profile. Because of the wide availability of gold ETFs, you don't have to be a stock-picking guru to participate in the gold industry's upside.

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FAQ

FAQ about investing in gold stocks

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Best Gold Stocks to Buy in 2026 and How to Invest

Key Points

Top gold mining stocks

1. Barrick Mining

Key Data Points

2. Franco-Nevada Corporation

Key Data Points

3. VanEck Gold Miners ETF

Key Data Points

4. Newmont

Key Data Points

5. Agnico Eagle Mines

Key Data Points

Types of Gold Stocks

How to invest in gold stocks

Pros and cons of investing in gold stocks

What to consider about investing in gold

Related investing topics

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FAQ

FAQ about investing in gold stocks

Is a gold stock a good long-term investment?

Is a gold stock a good long-term investment?

Should I keep cash or gold?

Should I keep cash or gold?

What reasons are there not to invest in gold?

What reasons are there not to invest in gold?

What is the average return on gold stocks?

What is the average return on gold stocks?

What if I invested $1,000 in gold 10 years ago?

What if I invested $1,000 in gold 10 years ago?

Is it better to buy gold or gold stocks?

Is it better to buy gold or gold stocks?

About the Author

Read Next

Stocks Mentioned

Premium Investing Services

Key Data Points

2. Franco-Nevada Corporation

Key Data Points

Key Data Points

4. Newmont

5. Agnico Eagle Mines

Types of Gold Stocks

How to invest in gold stocks

Pros and cons of investing in gold stocks

What to consider about investing in gold

5 Best Steel Stocks to Buy in 2026

Best Glass Stocks of 2026 and How to Invest in Them

Best Materials Stocks of 2026 and How to Invest in Them

Best Stocks to Buy in May 2026

FAQ about investing in gold stocks

Is a gold stock a good long-term investment?

Is a gold stock a good long-term investment?

Should I keep cash or gold?

Should I keep cash or gold?

What reasons are there not to invest in gold?

What reasons are there not to invest in gold?

What is the average return on gold stocks?

What is the average return on gold stocks?

What if I invested $1,000 in gold 10 years ago?

What if I invested $1,000 in gold 10 years ago?

Is it better to buy gold or gold stocks?

Is it better to buy gold or gold stocks?

Key Data Points

Key Data Points