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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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Barrick Mining (NYSE:B)	$77.3 billion	1.83%	Metals and Mining
Franco-Nevada (NYSE:FNV)	$50.6 billion	0.58%	Metals and Mining
VanEck ETF Trust - VanEck Gold Miners ETF (NYSEMKT:GDX)	$0.0 thousand	0.00%	Capital Markets
Newmont (NYSE:NEM)	$129.3 billion	0.85%	Metals and Mining
Agnico Eagle Mines (NYSE:AEM)	$113.7 billion	0.73%	Metals and Mining

Data as of Mar 11, 2026. Showing 5 of 5 tickers.

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NYSE: B

Barrick Mining

Today's Change

(0.72%) $0.33

Current Price

$46.14

Key Data Points

Market Cap

$77B

Day's Range

$45.95 - $47.18

52wk Range

$17.00 - $54.69

Volume

12M

Avg Vol

15M

Gross Margin

48.22%

Dividend Yield

1.83%

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NYSE: FNV

Franco-Nevada

Today's Change

(-0.22%) $-0.59

Current Price

$262.43

Key Data Points

Market Cap

$51B

Day's Range

$262.00 - $269.33

52wk Range

$140.03 - $285.67

Volume

41K

Avg Vol

822K

Gross Margin

71.99%

Dividend Yield

0.58%

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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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NYSEMKT: GDX

VanEck ETF Trust - VanEck Gold Miners ETF

Today's Change

(0.91%) $0.93

Current Price

$103.37

Key Data Points

Day's Range

$103.10 - $105.74

52wk Range

$40.26 - $117.17

Volume

22M

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NYSE: NEM

Newmont

Today's Change

(1.66%) $1.94

Current Price

$118.90

Key Data Points

Market Cap

$129B

Day's Range

$117.00 - $120.34

52wk Range

$42.91 - $134.88

Volume

Avg Vol

9.7M

Gross Margin

49.78%

Dividend Yield

0.85%

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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.

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NYSE: AEM

Agnico Eagle Mines

Today's Change

(0.97%) $2.19

Current Price

$226.94

Key Data Points

Market Cap

$114B

Day's Range

$226.50 - $231.80

52wk Range

$94.77 - $255.24

Volume

Avg Vol

2.8M

Gross Margin

56.39%

Dividend Yield

0.73%

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FAQ about investing in gold stocks

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers 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.

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.

Best Gold Stocks to Buy in 2026 and How to Invest

Key Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

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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

Stocks Mentioned

Our Guides

Premium Investing Services

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?

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 March 2026

Key Data Points

1. Barrick Mining

2. Franco-Nevada Corporation

3. VanEck Gold Miners ETF

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

Related investing topics

FAQ

Top gold mining stocks

Key Data Points

Key Data Points

Key Data Points

Key Data Points

4. Newmont