SUPERNEWS

Macro

Gold Hits $2,400; Top Stocks & ETFs to Buy Now

Gold prices soar to $2,400 amid Middle East tensions, with experts recommending gold stocks and ETFs for portfolio diversification.

By Bill Bullington

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5/7, 19:33 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
BHP Group Limited
VanEck Gold Miners ETF
Barrick Gold Corporation
GOLD
Newmont Corporation
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Key Takeaway

  • Gold prices surged to $2,400 amid geopolitical tensions, with a 12% increase YTD, highlighting its status as a safe haven asset.
  • Barrick Gold and Newmont Corporation are top picks for gold stocks due to strong earnings growth and operational performance.
  • ETFs like VanEck Gold Miners (GDX) and Junior Gold Miners (GDXJ) recommended for diversified exposure to the gold sector.

Gold's Resurgence Amid Uncertainty

Gold prices have seen a significant uptick, reaching over $2,400 an ounce in April due to escalating tensions in the Middle East, marking a 12% increase year to date. Kevin Teng, CEO of Wrise Group, emphasizes gold's potential for long-term returns, advocating for its inclusion in investment portfolios for wealth preservation and growth amidst macroeconomic and geopolitical uncertainties.

Spotlight on Gold Stocks

Teng highlights Barrick Gold and Newmont Corporation as promising investments within the gold sector. Barrick Gold is noted for its strong earnings and revenue growth forecasts, with analysts predicting substantial increases in the coming fiscal years. Newmont Corporation, the world's largest gold miner, has exceeded Wall Street's first-quarter profit estimates, benefiting from robust production and sales. Will McDonough of Corestone Capital also points to Coeur Mining and Hecla Mining for their geographic and value chain diversity, alongside Australian miner BHP for its diversified exposure to gold.

The Appeal of Gold ETFs

For broader market exposure, Teng recommends gold-focused ETFs, such as the VanEck Gold Miners ETF (GDX) and VanEck Junior Gold Miners ETF (GDXJ), both of which have seen approximately a 10% increase year to date. These ETFs offer liquidity and flexibility, allowing investors to adjust their gold exposure as needed, making them an attractive option during periods of economic uncertainty while maintaining portfolio diversification.

Street Views

  • Kevin Teng, CEO of Wrise Group (Bullish on gold):

    "Gold is certainly still in the early innings from a multi-year perspective, and investors can consider allocating a portion of their portfolio to gold due to its long-term potential."

  • Will McDonough, CEO of Corestone Capital (Bullish on Coeur Mining and Hecla Mining; Bullish on BHP):

    "I don’t think one stock is better than the other, but it’s nice to have a balance of both because they allow for exposure to geographic and value chain diversity." "Calling it [BHP] a 'smart name to hold just because it’s very diversified and is heavily exposed to gold.'"