Gold stocks are publicly traded investments focused on gold. The industry consists of the following types of entities:
- Mining companies: These companies explore for gold resources, develop mines, and sell gold and other metals.
- Gold-focused exchange-traded funds (ETFs): These funds own physical gold or shares of several gold mining companies.
- Gold streaming and royalty companies: These companies pay up-front fees to mining companies in exchange for:
- A percentage of the mine’s revenue, e.g., a mining royalty.
- The right to purchase the future production of a specific metal at a certain mine for a fixed price, e.g., a mining stream.
Gold is a safe-haven metal. Investors buy gold to hedge against risks such as rising inflation, geopolitical events, and financial crises. These factors can cause the price of gold to be volatile.
They can also drive its price much higher. Gold had rallied by late 2025 (up more than 50% in the past year) to more than $4,000 an ounce at one point, driven by inflationary and geopolitical concerns. However, pricing volatility has been high as investors weighed a potential recession with rising interest rates, inflation, tariffs, and other factors.
There are many benefits to buying gold stocks instead of the physical metal to reap the potential rewards of investing in gold. Gold companies can potentially generate higher total returns than an investment in physical gold because they can expand their production and reduce costs. Those factors can help gold mining companies grow their profits. Rising earnings can help drive stock prices up faster than the price of gold.
However, not all gold stocks outperform physical gold. Investors need to carefully choose the best gold stocks to buy.
Top gold mining stocks
Dozens of companies focus on mining gold, giving investors many options. Here are the top gold stocks to buy in 2025:
1. Barrick Mining
NYSE: B
Key Data Points
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 of six Tier One gold mines and is building a significant copper business. This portfolio positions the company to grow its production in gold equivalent ounces by 30% by 2030 from 2024's level.
Barrick complements its top-tier gold mining portfolio with a strong balance sheet. It has focused on paying down debt over the past several years through free cash flow and the sale of noncore assets. As a result, the company had the financial flexibility and strength to repurchase shares and pay an attractive dividend. The company pays a base dividend and a performance dividend, with the latter based on the amount of cash it has on its balance sheet at the end of each quarter.
2. Franco-Nevada Corporation
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 2025, 81% 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 provide it with the ability to generate lots of cash by selling the physical commodities it receives. That cash flow enables 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, hitting a milestone of 18 consecutive years in 2025. 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 $1.4 billion of available capital in late 2025 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 gold stock investment.
3. VanEck Gold Miners ETF
NYSEMKT: GDX
Key Data Points
The VanEck Vectors Gold Miners ETF holds the stocks of large gold mining companies. It's one of the largest gold ETFs, with about $23.2 billion in assets as of late 2025, when the ETF held shares in more than 50 gold mining companies. VanEck's top five holdings by value were:
- Agnico Eagle Mines (AEM +1.33%)
- Newmont Corporation (NEM +1.04%)
- AngloGold Ashanti (AU +2.34%)
- Gold Fields (GFI +3.26%)
- Barrick Mining (B +1.66%)
The five gold stocks made up almost 30% of the ETF's assets, with Agnico Eagle Mines accounting for 7.8%. Those top gold stocks have market capitalizations ranging from Agnic Eagle Mines' $81 billion to Barrick Mining's $56.1 billion. With the exception of Wheaton and Franco-Nevada, 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.
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 enables investors to benefit from a potential rise in the price of gold. Gold stocks can potentially outperform the price of gold as the mining companies grow their production and profitability.
- Inflation hedge: Gold stocks can help provide an inflation hedge for your portfolio.
- Diversification: Investing in gold stocks can help add more diversification to 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 the price of gold, they also run the risk of underperforming its price due to things like mine development cost overruns, financial issues, and mismanagement.
- Market risk: Because gold stocks are publicly traded investments, they have market risk. A broad stock market decline could cause gold stocks to fall.
Picking the best gold stocks
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, as well as 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 associated with mining physical gold. However, they often have lower upside potential compared to a mining company with a strong growth profile.
- Gold ETFs: ETFs are more convenient and cost-effective options for investing in gold stocks. A gold ETF offers broad exposure to the sector by owning either shares of gold mining companies or physical gold. A physical gold ETF is similar to owning gold bars or coins, while a mining ETF offers a higher reward potential beyond the price of gold as the underlying companies increase their 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.
Related investing topics
How to invest in gold stocks
Anyone can invest in gold stocks. Here's a step-by-step guide on how to add them to your portfolio:
- 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.
FAQ
About the Author
