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.

Gold stocks are publicly traded companies that mine gold or have gold-related investments. 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 their profits by expanding production and lowering costs, thereby generating higher returns. That upside isn’t guaranteed, though, making careful stock selection essential.

Here's a look at some of the best gold stocks to invest in this year.

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5 top gold stocks for 2026

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 gold 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).

Additionally, investors can consider gold ETFs. These funds invest in physical gold or gold mining stocks.

With so many options, it can be hard for investors to choose the right one for their portfolio. Here are five top gold stocks to consider in 2026:

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Barrick Mining (NYSE:B)	$69.2 billion	2.23%	Metals and Mining
Franco-Nevada (NYSE:FNV)	$43.8 billion	0.72%	Metals and Mining
VanEck ETF Trust - VanEck Gold Miners ETF (NYSEMKT:GDX)	$0.0 thousand	0.00%	Capital Markets
Newmont (NYSE:NEM)	$112.8 billion	0.97%	Metals and Mining
Agnico Eagle Mines (NYSE:AEM)	$86.5 billion	0.98%	Metals and Mining

Data as of Jun 18, 2026. Showing 5 of 5 total entries.

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1. Barrick Mining

NYSE: B

Barrick Mining

Today's Change

(-2.76%) $-1.14

Current Price

$40.15

Key Data Points

Market Cap

$69B

Day's Range

$39.73 - $42.22

52wk Range

$20.35 - $54.69

Volume

684K

Avg Vol

13.5M

Gross Margin

52.26%

Dividend Yield

2.23%

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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 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, with the IPO expected by the end of 2026.

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 over 255,000 tonnes.

The company generated record cash flow in 2025, enabling it to strengthen its balance sheet to build a $2.4 billion net cash position by the first quarter of 2026. The company also had the financial flexibility to authorize a $3 billion share repurchase program and significantly increase its dividend. Barrick set a new dividend policy in early 2026 to pay out about 50% of its free cash flow in dividends.

2. Franco-Nevada Corporation

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NYSE: FNV

Franco-Nevada

Today's Change

(-3.06%) $-6.94

Current Price

$219.99

Key Data Points

Market Cap

$44B

Day's Range

$217.61 - $231.31

52wk Range

$152.89 - $285.67

Volume

31.5K

Avg Vol

876.3K

Gross Margin

76.56%

Dividend Yield

0.72%

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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, 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.

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3. VanEck Gold Miners ETF

NYSEMKT: GDX

VanEck ETF Trust - VanEck Gold Miners ETF

Today's Change

(-2.44%) $-2.06

Current Price

$82.30

Key Data Points

Day's Range

$81.47 - $86.57

52wk Range

$50.32 - $117.17

Volume

27M

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NYSE: NEM

Newmont

Today's Change

(-2.06%) $-2.18

Current Price

$103.49

Key Data Points

Market Cap

$113B

Day's Range

$102.64 - $107.58

52wk Range

$55.37 - $134.88

Volume

339.3K

Avg Vol

Gross Margin

55.12%

Dividend Yield

0.97%

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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 (149 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 has been cashing in on higher gold prices. It generated $3.1 billion in free cash flow during the first quarter of 2026 and returned $2.7 billion to shareholders through dividends and repurchases. Newmont ended the first quarter of 2026 with a $3.2 billion net cash position. The company's robust cash flows and strong balance sheet enabled it to authorize an additional $6 billion share repurchase program in 2026.

5. Agnico Eagle Mines

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NYSE: AEM

Agnico Eagle Mines

Today's Change

(-3.62%) $-6.27

Current Price

$166.72

Key Data Points

Market Cap

$87B

Day's Range

$166.01 - $176.43

52wk Range

$114.60 - $255.24

Volume

109.3K

Avg Vol

2.6M

Gross Margin

60.15%

Dividend Yield

0.98%

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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 acquisition of Yamana Gold's Canadian assets. Agnico also bought O3 Mining in 2025. In 2026, the company proposed consolidating the Finland Central Lapland Greenstone Belt in three separate transactions to transform its Finland platform into a 500,000-ounce-per year gold production hub within the next decade.

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.

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. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
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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Benefits and risks 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.
Geopolitical risks: Many of the best gold mines and deposits are in developing countries, exposing miners to various risks such as tax changes, export restrictions, nationalization, and forced mine shutdowns.

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Should you invest in gold stocks?

There are lots of ways to invest in gold. You should consider the one that best fits your investment goals and risk tolerance.

For example, gold mining stocks benefit from rising gold prices and from their ability to increase production and reduce costs. However, they risk underperforming gold due to mining cost overruns and other company-specific issues. Meanwhile, gold streaming and royalty companies generally offer the best risk-reward potential among gold-focused investment options, though they often have lower upside than a mining company with a strong growth profile. Finally, gold ETFs 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. 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

Investing in gold stocks: FAQ

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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.

5 Best Gold Stocks for 2026 and How to Invest

Key Points

5 top gold stocks for 2026

1. Barrick Mining

Key Data Points

2. Franco-Nevada Corporation

Key Data Points

3. VanEck Gold Miners ETF

Key Data Points

Key Data Points

5. Agnico Eagle Mines

Key Data Points

How to invest in gold stocks

Benefits and risks of investing in gold stocks

Should you invest in gold stocks?

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Best Stocks to Buy in June 2026

FAQ

Investing in gold stocks: FAQ

Are gold stocks a good long-term investment?

Are gold stocks 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

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

5 top gold stocks for 2026

Key Data Points

2. Franco-Nevada Corporation

Key Data Points

Key Data Points

5. Agnico Eagle Mines

Key Data Points

How to invest in gold stocks

Benefits and risks of investing in gold stocks

Should you invest in gold stocks?

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?

Are gold stocks 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

4. Newmont