In this article: 12 The best precious metal stocks to invest in now. Check out our article for an overview of these stocks. Five The best precious metal stocks to invest in now.
Precious metals are in the spotlight amid rising geopolitical tensions in the Middle East and surging demand for gold in China and India. Against a backdrop of stubborn inflation and a strong job market, gold remains weak despite expectations that the Federal Reserve will need to reduce its targeted number of rate cuts this year or postpone its plans to cut rates altogether. It is updating its high price. But precious metals investors are facing a tough time. Gold futures prices continue to soar despite the lack of significant inflows into gold ETFs like iShares Gold Trust Micro (IAUM) and SPDR Gold MiniShares Trust (GLDM) . What will push up the gold price in 2024? One explanation cited by many experts is possible demand from China, where people are buying gold to protect their investments amid a downturn in the real estate industry. A recent report in the Wall Street Journal quoted Chris Mancini, associate portfolio manager at Gabelli Gold Fund (GOLDX), as saying that current demand for gold is driven by physical buyers of the precious metal in China. He said he was coming.
Precious Metals Outlook for 2024: The Case for Bears and Bulls
Metals trading firm MKS PAMP had already flagged possible challenges for the Federal Reserve to meet its inflation target this year in its 2024 Precious Metals Outlook report. The report said the biggest risk was a rebound in inflation, which could result in a scenario of “prolonged increases in inflation.” However, given expectations for interest rate cuts in the first half of this year, the report offered a rosy outlook for gold, saying the base case average target price for gold is $2,050 an ounce. Compare this to the latest gold price of $2340. Looking at the per ounce numbers as of April 13, you begin to understand why analysts are having a hard time understanding this year's surge in gold prices. The MKS report puts the probability of this scenario at 50% and says it would occur in the event of a “slow landing” in which the Fed begins lowering rates in the first half of 2024. But since this scenario is not expected to materialize, what is the bear case for gold as the Fed may change its plans? According to the MKS report, there is a long-term bullish scenario (currently If demand for gold from Asia remains weak (which seems likely), the average price of gold will be $1,600 an ounce.
Germany-based Heraeus also said in its precious metals outlook earlier this year that interest rates will determine the precious metal's trajectory this year, with the company expecting gold prices to remain between $1,880 and $2,250 an ounce. There is.
Silver Outlook for 2024
Silver moves much the same as gold when it comes to broad price movements on the back of macroeconomic news, but the fact that silver is not only treated as a safe-haven asset, but also widely used in the industry, It makes silver interesting. For example, the Heraeus report states that the use of silver in photovoltaics (PV) is still on the rise, with the company predicting that demand for silver for solar PV will rise by up to 190 Moz this year, driven by China's PV industry. He says he expects it to reach .
Powerful buying opportunity for gold investors
This year's surge in gold prices has baffled analysts, but any correction in precious metals prices could raise concerns for investors, as geopolitical tensions in the Middle East, the Russia-Ukraine war, and the upcoming US election act as catalysts. Many believe this will create new purchasing opportunities. . A recent report from Bloomberg quotes Philip Newman, managing director of consultancy Metals Focus, as saying that the gold market is “overextended” and could lead to a “liquidation selloff.” Stated. But analysts said such liquidations could create a “very strong buying opportunity.”
Photo by Gold-bar-jingming-pan on Unsplash
Performance of precious metal stocks
SPDR Gold Trust (NYSEARCA:GLD) is up about 13% so far this year, but how has an ETF focused on precious metals performed? iShares MSCI Global Gold Miners ETF (NASDAQ: RING) is up 11% this year, compared to the S&P 500's gain of about 8%. Over the past year, RING is down his 2%, compared to a 23% rise for the broader market. The ETF's top holdings include Newmont Corporation (NYSE:NEM), Barrick Gold Corp. (NYSE:GOLD), and Agnico Eagle Mines Limited (Ontario) (NYSE:AEM).
In this article, we scanned Insider Monkey's database of 933 hedge funds and their stock holdings and selected the 12 precious metals stocks with the highest number of hedge fund investors. Why pay attention to hedge fund sentiment? The top 10 consensus stocks selected by hedge funds have outperformed the S&P 500 index by more than 140 percentage points over the past 10 years (Please see here for the detail).
12. AngloGold Ashanti (NYSE:AU)
As of the end of the fourth quarter of 2023, 13 of the 933 hedge funds tracked by Insider Monkey held shares in AngloGold Ashanti, a gold mining company headquartered in South Africa.
11. Gold Fields Limited (NYSE:GFI)
Number of hedge fund investors: 19
Headquartered in South Africa, Gold Fields Limited (NYSE:GFI) is one of the world's largest gold mining companies. The stock price has increased about 22% over the past year.
As of the end of Q4 2023, 19 hedge funds out of 933 hedge funds tracked by Insider Monkey reported owning shares of Gold Fields Limited (NYSE:GFI).
10. Sibanye Stillwater Limited (NYSE:SBSW)
Number of hedge fund investors: 21
According to Insider Monkey's database of 933 hedge funds, 21 hedge funds were long in Sibanye Stillwater Ltd. (NYSE:SBSW) at the end of Q4 2023. The largest stake in Sibanye Stillwater Ltd (NYSE:SBSW) is owned by Cliff Anes. AQR Capital Management owns $34.3 million in shares of Sibanye Stillwater Ltd (NYSE:SBSW).
Sibanye Stillwater Limited (NYSE:SBSW) recently announced that 3,000 employees and 1,000 contractors will lose their jobs due to the planned restructuring of its gold mining operations in South Africa.
9. Pan American Silver Corp. (NYSE:PAAS)
Number of hedge fund investors: 22
Pan American Silver Corp. (NYSE:PAAS) stock has increased about 23% since the beginning of the year. Roth MKM recently released a list of top-ranked silver mining stocks. Pan American Silver Corporation (NYSE:PAAS) was one of them. Ross-MKM believes that if silver prices recover, silver stocks could catch up with and outperform gold stocks.
8. Royal Gold Co. (NASDAQ:RGLD)
Number of hedge fund investors: 23
With more than 20 years of consistently increasing dividends, Royal Gold (NASDAQ:RGLD) is one of the best precious metal stocks to buy, according to hedge funds. A total of 23 hedge funds in Insider Monkey's database reportedly own shares in Royal Gold Inc. (NASDAQ:RGLD) at the end of last year. The largest stakeholder in Royal Gold Corp. (NASDAQ:RGLD), with a $444 million stake, was Jean-Marie Eveillard's First Eagle Investment Management.
The company discussed guidance and other key business insights during its fourth quarter earnings call:
“Centerra also provided production guidance of 180,000 to 200,000 ounces of gold and 55 million to 65 million pounds of copper for 2024. Centerra expects this production to be even throughout the year. Pueblo In Viejo, we reported yesterday that construction and commissioning of the factory expansion had begun.''It was substantially completed at the end of December, and equipment issues we had in the second half of the year have been resolved, and we are working on rebuilding the crushing or stockpiling feed conveyor.'' Our plan, which we aim to complete in the second quarter, is based on Barrick's share of production in PV, with Barrick targeting 420,000 to 490,000 ounces of gold production in 2024.
Approximately 165,000 ounces of silver were deferred during the quarter, for a total of 854,000 ounces of silver at the end of December. In a report yesterday, Barrick said the focus in the first quarter was on the continued stability and optimization of the flotation circuit, which he expects will result in higher and more consistent silver recoveries. I commented. This optimization exercise will likely take some time and the recovery of deferred silver ounces will depend on the outcome of this exercise. Cortez expects to increase production from 130,000 ounces this year to about 400,000 ounces annually in 2028, with Barrick announcing in mid-December that it received the Gold Rush record of decision. He also yesterday announced Cortez's 2024 guidance of 620,000 ounces. Up to 680,000 ounces, including donations from the Gold Rush. ”
Please read the full transcript of the financial results conference here.
Like RGLD, hedge funds have flocked to Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Agnico Eagle Mines Limited (Ontario) (NYSE:AEM). There is.
7. Wheaton Precious Metals Corporation (NYSE:WPM)
Number of hedge fund investors: 28
Canada-based Wheaton Precious Metals Corporation (NYSE:WPM) is one of the top precious metals stocks to invest in in 2024. Ross MKM recently added Wheaton Precious Metals Corporation (NYSE:WPM) to its list of top silver stocks. Wheaton Precious Metals Corporation (NYSE: WPM) recently increased its dividend by 3.3%.
6. Franco-Nevada, Inc. (NYSE:FNV)
Number of hedge fund investors: 30
Of the 933 hedge funds in Insider Monkey's database, 30 funds hold shares in Canadian-based gold-focused royalty and streaming company Franco-Nevada Corporation (NYSE:FNV). was in possession. The largest stake in Franco-Nevada Corporation (NYSE:FNV) is Jean-Marie Eveillard's First Eagle Investment Management, which owns $349 million in Franco-Nevada Corporation (NYSE:FNV) stock. belongs to.
In addition to FNV, hedge funds have also acquired Newmont Corporation (NYSE:NEM), Barrick Gold Corporation (NYSE:GOLD), and Agnico Eagle Mines Limited (Ontario) (NYSE:AEM). .
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Disclosure. none. 12 The best precious metal stocks to invest in now Originally published on Insider Monkey.
