Are gold stocks 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 over the past 20 years has been 15%. 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 10 years, the average gold mining stock has delivered a compound annual return of more than 12.5% (as measured by the VanEck Gold Miners ETF). That has underperformed the price of gold (nearly 13% annualized return) and the S&P 500 (over 13% 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 almost $3,350 in mid-2026 (a 234% or 12.8% annualized return).

Is it better to buy gold or gold stocks?

Over the last decade, it has been better to buy gold than gold stocks. The price of gold has risen at an annualized rate of 12.8%. That compares to a 12.6% annualized total return for the average gold stock during that period (as measured by the VanEck Gold Miners ETF). However, some mining stocks have outperformed gold during that period due to their ability to grow their production and pay dividends. For example, Agnico Eagle Mines has delivered a 14.2% annualized total return during that period. Given these performance differences, investors need to identify gold stocks they believe will outperform gold over the long term.

5 Best Gold Stocks for 2026 and How to Invest

Key Points

Gold stocks provide an investment option distinct from owning physical gold, allowing potential outperformance through production and profit expansion.
Top gold stocks include industry leaders like Barrick Mining, which is expanding and innovating for higher gold and copper output.
Investors can diversify their portfolios and manage risks via gold ETFs and shares in major gold mining companies like Franco-Nevada.

Loading paragraph...

Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Barrick Mining (NYSE:B)	$67.3 billion	2.29%	Metals and Mining
Franco-Nevada (NYSE:FNV)	$42.6 billion	0.74%	Metals and Mining
VanEck ETF Trust - VanEck Gold Miners ETF (NYSEMKT:GDX)	$0.0 thousand	0.00%	Capital Markets
Newmont (NYSE:NEM)	$108.7 billion	1.00%	Metals and Mining
Agnico Eagle Mines (NYSE:AEM)	$83.4 billion	1.02%	Metals and Mining

Data as of Jun 23, 2026. Showing 5 of 5 total entries.

Loading ticker_table...

Loading paragraph...

NYSE: B

Barrick Mining

Today's Change

(-0.45%) $-0.18

Current Price

$40.16

Key Data Points

Market Cap

$67B

Day's Range

$39.67 - $40.38

52wk Range

$20.35 - $54.69

Volume

424.2K

Avg Vol

12.8M

Gross Margin

52.26%

Dividend Yield

2.29%

Loading company_card...

Loading paragraph...

NYSE: FNV

Franco-Nevada

Today's Change

(0.67%) $1.47

Current Price

$220.73

Key Data Points

Market Cap

$43B

Day's Range

$214.47 - $221.10

52wk Range

$152.89 - $285.67

Volume

806.7K

Avg Vol

853K

Gross Margin

76.56%

Dividend Yield

0.74%

Loading company_card...

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, around 85% 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. The company expects to grow its gold equivalent ounces from 519,000 in 2026 to more than 555,000 in 2030, with significant upside potential from the potential restart of the Cobre Panama mine and future investments.

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 and has about $3.4 billion of total available capital in mid-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.

Loading paragraph...

NYSEMKT: GDX

VanEck ETF Trust - VanEck Gold Miners ETF

Today's Change

(-1.30%) $-1.07

Current Price

$81.44

Key Data Points

Day's Range

$80.14 - $81.67

52wk Range

$50.32 - $117.17

Volume

17.4M

Loading company_card...

Loading paragraph...

NYSE: NEM

Newmont

Today's Change

(-1.92%) $-1.99

Current Price

$101.80

Key Data Points

Market Cap

$109B

Day's Range

$99.62 - $101.92

52wk Range

$55.37 - $134.88

Volume

8.3M

Avg Vol

8.5M

Gross Margin

55.12%

Dividend Yield

1.00%

Loading company_card...

Loading paragraph...

NYSE: AEM

Agnico Eagle Mines

Today's Change

(0.07%) $0.12

Current Price

$166.78

Key Data Points

Market Cap

$83B

Day's Range

$162.57 - $166.80

52wk Range

$114.60 - $255.24

Volume

126.1K

Avg Vol

2.5M

Gross Margin

60.15%

Dividend Yield

1.02%

Loading company_card...

Loading paragraph...

Investing in gold stocks: FAQ

Loading faq...

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.

5 Best Gold Stocks for 2026 and How to Invest

Key Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Related investing topics

5 Best Steel Stocks to Buy in 2026

Best Glass Stocks of 2026 and How to Invest in Them

7 Best Materials Stocks for 2026 and How to Invest

Best Stocks to Buy in June 2026

Investing in gold stocks: FAQ

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

Key Data Points

5 Best Steel Stocks to Buy in 2026

Best Glass Stocks of 2026 and How to Invest in Them

7 Best Materials Stocks for 2026 and How to Invest

Best Stocks to Buy in June 2026

Investing in gold stocks: FAQ

Are gold stocks a good long-term investment?

Should I keep cash or gold?

What reasons are there not to invest in gold?

What is the average return on gold stocks?

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

Is it better to buy gold or gold stocks?

1. Barrick Mining

2. Franco-Nevada Corporation

3. VanEck Gold Miners ETF

5. Agnico Eagle Mines

How to invest in gold stocks

Benefits and risks of investing in gold stocks

Should you invest in gold stocks?

Related investing topics

FAQ

5 top gold stocks for 2026

Key Data Points

Key Data Points

Key Data Points

Key Data Points

4. Newmont