Gold Prices Surging, 3 Stocks to Buy Before Prices Hit $3,500 per Ounce

Gold has been on a historic bull run so far this year, and it may be unlike anything we’ve seen before. People are sitting on record amounts of liquidity, but very limited places to put that into use. Treasuries have historically been a great bet, and I’d argue they still are. However, considering that government policies have been erratic recently, even that is not very attractive to investors.

Some investors have been snapping up cheap equities, but not everyone is in the bull camp. Even if you are, equities shouldn’t constitute more than 75% of your portfolio (as a rule of thumb), so where do you put all this excess cash?

Gold is what many people are going for. It is up 28.4% year-to-date and has outperformed every other major asset. It’s not hard to see why, due to the lack of other options, and it seems set to cross $3,500 or more in the coming weeks if markets keep being volatile. Here are three stocks that could benefit from this gold rally.

Newmont Corporation (NEM)

Newmont (NYSE:NEM) might look like an obvious pick since it is the biggest gold miner out there, but going with the obvious one is often the best idea. This is the first gold stock that is going to hit people’s screeners when they search for a gold stock, and it stands to directly benefit from rising interest in gold. The company has had a tough time keeping up with the market and has been a laggard since late 2022 due to production setbacks and earnings misses.

However, the recent gold bull run is above and beyond analyst expectations and should offset most of the bearish arguments against NEM stock. The company’s profits are highly sensitive to gold price movements, and all-in sustaining costs are expected to be around $1,620/oz this year. Every $100 increase in gold price flows directly to the bottom line.

If gold reaches $3,500, Newmont’s operating margins could exceed 50%. Major banks have been upgrading NEM stock, and FactSet consensus projects Newmont’s EPS to rise 13% to $3.92 in 2025 and sees further growth in 2026. These estimates are likely to prove conservative given how well gold is doing. NEM stock is up 16.3% in the past month alone, but is still down 33% from its peak. It trades at just above 19 times earnings and has a dividend yield of 1.82% to sweeten the deal.

Barrick Gold (GOLD)

Barrick Gold (NYSE:GOLD) also stands to directly benefit as gold surges. The stock has been relatively flat in the past couple of years and is actually down 25.6% in the past five years. The company’s mining locations are to blame for this, as Mali holds one of its most valuable assets. It is in dispute with the government, which claims that Barrick owes taxes and has seized three tons of gold and detained employees. Barrick suspended operations at the mine in January 2025 after the government blocked gold exports. This situation has led to a temporary suspension of operations at Loulo-Gounkoto, which has been excluded from Barrick’s 2025 production guidance.

But even if we count out this high-risk mine, Barrick can produce enough gold to keep performing well on the stock market as long as gold prices hold strong. The company is also diversifying into copper. Barrick’s cost profile is among the best in the industry, with an all-in sustaining cost (AISC) of $1,451/oz in Q4 2024. The Malian mine doesn’t matter if gold goes to $3,500. This company is the second-largest gold producer after Newmont, and one mine is not enough to knock it down.

It is targeting a 30% increase in gold-equivalent production by the end of 2030 by ramping up production in the Dominican Republic, Papua New Guinea, and Nevada. It also invested $2 billion in a Zambian copper mine project. Net earnings already increased 69% in 2024 to $2.14 billion, and free cash flow more than doubled to $1.32 billion.

Agnico Eagle Mines (AEM)

Agnico Eagle Mines (NYSE:AEM) is a good choice if you don’t want to bet on the two rebound stories above. AEM stock has been on a solid run and is already up 97% in just the past year.

The company also focuses on more stable jurisdictions, so you shouldn’t have any problems like Barrick did in Mali. Agnico mines extensively in Canada, and it also has mines in Mexico, Australia, and Finland. The company has a policy of no-forward gold sales, so it gets full exposure to any ups and downs in gold prices.

The company produced gold at an AISC of $1,239/oz and posted $3.96 billion in operating cash. Debt was paid back aggressively as it dropped by $1.29 billion to $217 million by year-end 2024. There’s plenty of room for this company to keep growing as reserves have slightly increased, and gold prices are only going up due to the broader market volatility. The stock also comes with a 1.31% dividend yield.

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