Jul 30, 2023
Are you exploring ways to add value to your portfolio in an uncertain market? Investing in gold stocks and ETFs could be a smart move for 2023, as many believe the price of gold will continue climbing. That said, making wise investment decisions about which companies or assets to put your money into is important.
In this blog post, we'll look at some of the best gold-based investments for 2023 and offer recommendations on maximizing your profits and minimizing any risk. So if you're interested in learning more about the current investment landscape related to gold stocks and ETFs, keep reading!
The gold stock market is full of opportunities for investors. Let's consider some of the best gold stocks in 2023.
Torex Gold Resources Inc (TXG.TO) is a great gold-based investment for 2023. The five-year forward EPS growth estimate stands at +182%, and the stock has traded in a large range between $8 and as high as $35 over the past decade.
The company's sales have risen since 2016, with a forward P/E ratio of 19.5 and a positive solvency ratio of 213%. Torex has not increased its outstanding shares in recent years, which is good news for investors - no dilution of their holdings. Overall, this stock looks like an attractive option for expanding your portfolio in 2023 without taking on too much risk.
Dundee Precious Metals Inc. (DPM.TO) is an attractive gold-based investment option in 2023, with a five-year forward EPS growth estimate of 145%. The stock has been trending higher since 2018 and boasts a 2.3% dividend yield and a 10.0 P/E ratio.
Additionally, Dundee's sales have steadily increased for seven years, despite a slight dip in 2022. With its 155% solvency ratio and an increasing number of outstanding shares, investors can feel confident that DPM offers strong potential for returns in the coming year.
AngloGold Ashanti Limited is a gold mining company based in Johannesburg, South Africa. The company operates mines in Africa, Australia, and the Americas and has seen steady growth in its earnings since 2015.
In 2023, AU's share price has been range-bound for 10 years but is currently above its 200-day moving average. The dividend yield of 2.4% can vary from year to year, but it remains an attractive option for investors looking to diversify their portfolios with investments backed by gold assets.
With a moderate P/E of 28.7 and rising sales trends, AngloGold Ashanti Limited is worth considering if you're looking for ways to add value to your portfolio in an uncertain market.
DRDGold Limited (DRD) is a gold extraction and processing company located in South Africa. With 8 years of rising sales, DRDGold has consistently increased profits over the past four years.
DRD's 5-year forward earnings estimate is 10%, and its 211% solvency ratio indicates a healthy balance sheet. Between mid-2019 and mid-2020, the stock rallied almost 900%. Additionally, its current P/E ratio of 11.2 makes it one of the lowest readings over the last five years - making it an attractive investment option for 2023.
With a dividend yield of 3%, investors can also benefit from consistent returns. Thus, DRDGold makes an attractive choice for those investing in gold.
Gold Fields Limited (GFI) is an attractive gold-based investment option for 2023. The company has steadily increased its sales and earnings per share since 2016 and 2019. Analysts project moderate growth going forward.
GFI boasts a 3.9% dividend, the highest on this list, although it varies in payment amount yearly. Additionally, its P/E ratio of 14.1 is lower than readings over the last five years, with a low reading of just under 7.0 in 2022. With such promising metrics, GFI may offer investors great potential returns as they look to add value to their portfolios in this uncertain market.
Franco-Nevada Corporation (FNV) is an ideal investment choice for anyone looking to add gold stocks or ETFs to their portfolio in 2023. The company has seen steady growth over the last 15 years, with rising sales and earnings each year since 2018.
It also boasts a 1% dividend that has been consistently increasing for over a decade. Analysts predict moderate forward EPS growth, and the P/E ratio 34.3 is one of the lowest readings in the past ten years. This makes FNV a reliable option for those interested in long-term investments in gold companies.
Royal Gold, Inc. (RGLD) is a gold streaming company based in Denver. With more than 9 years of rising sales and a 43% solvency ratio, RGLD offers investors a low-risk investment opportunity with the potential for steady returns.
The stock has moved sideways since mid-2020 with a high of $147.70 and a low of $84.54 and currently trades at an attractive P/E ratio of 32.7%. Additionally, the company pays a 1.3% dividend that has increased yearly since 2016, further adding to its appeal as a sound investment option for 2023.
SSR Mining Inc. (SSRM.TO) is a gold mining company headquartered in Denver that operates in the U.S., Canada, and Argentina. It has been posting positive earnings since 2016, and sales had been rising steadily until 2021 when it dipped lower year over year.
The stock trades at a P/E ratio 15.1 and pays a 2% dividend with plans to raise annually. Analysts believe there will be a 4% per year EPS growth estimate over the next five years for the Canadian listing (SSRM.TO).
Given its solid fundamentals, SSR Mining is an attractive option for investors looking to add gold-related investments to their portfolios in 2023.
When investing in gold, exchange-traded funds (ETFs) can be attractive. Here we look at some of the best gold ETFs for 2023:
The iShares Gold Trust Micro ETF (IAUM) is a great choice for those investing in gold in 2023. With a low expense ratio of 0.09%, IAUM offers an efficient and cost-effective way to add gold exposure to your portfolio.
Over the past year, IAUM has seen a performance of 7.51%, while its assets under management have increased to $993.4 million since its inception date of June 15, 2021. This ETF trades on the NYSE Arca and is backed by BlackRock Financial Management 4, making it a reliable option with growth potential.
Invesco DB Precious Metals Fund (DBP) has been a top performer in the gold-based ETFs space, with its 7.54% returns over one year proving that it is worth considering for investors looking to capitalize on the current market trends.
With an expense ratio of 0.77%, annual dividend yield of 0.43%, and assets under management of $181.1 million, this ETF offers great value for those interested in building a portfolio around precious metals investments.
Additionally, its three-month average daily volume of 27,844 is quite impressive and speaks to the liquidity offered by this fund. In short, DBP may be the gold investment you need to maximize profits in 2023.
SPDR Gold Trust (GLD), the most liquid gold ETF, has seen a strong performance over the past year with returns of 7.16%. World Gold Trust Services manage it and tracks the LBMA Gold Price as a benchmark.
The fund's goal is to reflect the price of gold bullion, and it currently holds $58.5 billion in assets under management. With an expense ratio of just 0.40%, GLD boasts one of the lowest fees amongst all gold ETFs and an average daily volume of 8,654,929 shares. SPDR Gold Trust could be ideal for investors looking for steady returns in 2023.
It depends on your investment style and goals. SPDR Gold Trust (GLD) could be your ideal choice if you want a low-cost ETF with great liquidity. Alternatively, companies like DRDGold Limited (DRD) and Royal Gold, Inc. (RGLD) may be worth considering if you invest in gold stocks.
Yes, investing in gold stocks and ETFs is a good idea for 2023, as many analysts predict that the price of gold will continue to rise.
The best gold investments for 2023 include companies such as DRDGold Limited (DRD), Gold Fields Limited (GFI), Franco-Nevada Corporation (FNV), Royal Gold, Inc. (RGLD), and SSR Mining Inc. (SSRM.TO).
Gold is often considered a safe-haven asset in uncertain markets, and 2023 could be an ideal time to add gold stocks or ETFs to your portfolio. Several reliable options for gold investments offer great long-term prospects, including DRDGold Limited (DRD), Gold Fields Limited (GFI), Franco-Nevada Corporation (FNV), Royal Gold, Inc. (RGLD), and SSR Mining Inc. (SSRM.TO). Similarly, ETFs such as iShares Gold Trust Micro ETF (IAUM), SPDR Gold Trust (GLD), and Invesco DB Precious Metals Fund (DBP) are also worth considering for their liquidity and cost-effectiveness.