Why Gold is the Investment of 2025

Gold has long been viewed as a safe haven, particularly in turbulent times. Over the past year alone, the precious metal's price has surged an impressive 41%! Some gold stocks have even more than doubled in price, and recent trends suggest they might still have room to grow. But which gold stocks are primed for a breakout?

How We Found the Best Gold Stocks

Using Stockcalc’s advanced screener, we identified the top 10 gold mining companies on the TSX, ranked by market capitalization. We then employed various valuation methods to assess their worth. Here are the key techniques we used:

1. **Discounted Cash Flow (DCF):** This technique estimates a stock's value based on its projected future cash flows, adjusted for time.

2. **Price Comparables:** This method benchmarks a company’s value against similar firms in the industry.

3. **Adjusted Book Value (ABV):** This approach recalculates a company’s book value using its long-term price-to-book ratio.

What’s Fueling Gold's Prices?

Several factors have propelled gold prices to new heights. Central banks, particularly in emerging markets like China and India, are ramping up their gold purchases to hedge against geopolitical instability and reduce exposure to the U.S. dollar. Inflation, low real interest rates, and recession fears have further increased gold's appeal as a hard asset. With expectations of more rate cuts and a weaker dollar, gold's demand is on the rise!

Analysts Predict an Upsurge in Gold Prices

Currently, gold is hovering around $3,700 per ounce, and analysts are optimistic! Many have adjusted their 2026 price forecasts upward, anticipating prices to stabilize or increase modestly, with estimates ranging from $3,700 to $4,700 per ounce.

Key Gold Mining Stocks to Watch

Here's a glimpse of some of the most promising gold stocks:

- **Newmont Corp. (NGT-T):** As the largest gold miner globally, Newmont boasts substantial production capabilities, selling approximately 5.9 million ounces in 2025. Our analysis indicates significant upside potential for the next year.

- **Wheaton Precious Metals Corp. (WPM-T)** and **Franco-Nevada Corp. (FNV-T):** These royalty companies are projected to see over 15% upside in the next 12 months, making them excellent options for investors seeking indirect exposure to gold.

- **Agnico Eagle Mines Ltd. (AEM-T):** With operations in multiple countries, Agnico is expected to produce between 3.3 and 3.5 million ounces in 2025.

- **Kinross Gold Corp. (K-T)** and **Lundin Gold Inc. (LUG-T):** Both companies have seen over 100% growth in the past year, although their valuation differences from current prices are more modest.

The Bottom Line on Gold Stocks

Now is a pivotal time to consider gold investments! As demand for gold continues to climb amidst economic uncertainties, these gold stocks may hold the key to significant returns.

Always remember, investing carries risks. Make informed decisions and consider the potential rewards of adding gold stocks to your portfolio!