The 2 Best Gold Stocks to Buy Today

Gold is a timeless safe-haven asset that shines in 2025, with prices at $3,400 per ounce, a 27% increase year-to-date, driven by inflation fears, tariff uncertainties, and a weakening U.S. dollar.

Its allure as a hedge against economic volatility draws investors seeking portfolio stability, especially as central banks and Asian markets fuel demand. However, investing in physical gold bullion — bars or coins — has drawbacks. 

Bullion incurs storage costs, does not generate income, and faces liquidity challenges, requiring days or weeks to sell. Premiums over spot prices further erode returns. Conversely, gold mining stocks offer a leveraged play on gold prices, amplifying gains during bull markets. From 2000 to 2011, gold miners returned around 700%, compared to bullion’s 500% gain, as production costs lag price rises.

Despite risks like operational costs and market volatility, the following two solid gold miners are superior choices for capitalizing on gold’s rally in today’s dynamic market.

Newmont (NEM)

As the world’s largest gold producer, Newmont (NYSE:NEM) is a compelling investment today, driven by stellar financials, strategic growth levers, and a robust gold market.

First-quarter results showcased 1.5 million attributable gold ounces produced, generating a record $1.2 billion in free cash flow and $2 billion in operating cash flow. For the full year of 2024, Newmont produced 6.8 million gold ounces and 1.9 million gold equivalent ounces (GEOs) from copper, silver and other metals, with $1.1 billion in dividends and $1.2 billion in share repurchases, 

Trading at $55 with a 1.8% dividend yield, Wall Street seems to think Newmont is fairly valued as analysts have a consensus one-year price target of $56 per share. However, NEM stock trades at just 12 times earnings and estimates, and 14 times the free cash flow it generates, making it undervalued compared to its peers. 

A few of the growth levers Newmont has available include the $4.3 billion divestiture program it completed in April, which netted it $2.5 billion in cash proceeds. Its planned use for the funds remains reducing its debt and returning value to shareholders through stock buybacks. Its Australian Tanami Expansion project will position the mine as a long-life, low-cost producer by extending mine life beyond 2040, while a $525 million exploration budget targets mine life extensions at Ahafo and Merian. Newmont’s copper production further diversifies revenue.

Risks include gold price volatility and operational costs, but Newmont’s Tier 1 portfolio and 0.3x net debt-to-EBITDA ratio ensure stability. The mining major offers strong cash flows and strategic investments, coupled with gold’s safe-haven appeal, making NEM stock a top pick for 2025.

Barrick Mining (B)

Barrick Mining (NYSE:B) is the second-largest gold producer and is the second gold mining stock to buy. The first quarter saw a 59% surge in net earnings per share and an 84% rise in adjusted earnings per share, with operating cash flow up 20% and free cash flow doubling year-over-year.

Production hit the top end of guidance, with 758,000 gold ounces and 44,000 tonnes of copper, bolstering the 15% increase in gold output Barrick saw in Q4. The miner’s $0.40 annual dividend yielding 2.1% and a $1 billion share buyback program enhance shareholder value, supported by a low 14% debt-to-equity ratio.

Growth levers include advancing Tier 1 projects like its Pueblo Viejo’s plant expansion, which will add 200,000 ounces annually by 2026, and Lumwana’s Super Pit, which should double copper output by 2028. Barrick’s $1 billion Donlin sale also streamlined its portfolio, while exploration at Nevada Gold Mines targets 30% production growth by 2030.

Like Newmont, Barrick is not without risks. Mali’s operational suspension at Loulo-Gounkoto, for example, impacted 10% of output, and there have been safety incidents, but the miner’s diversified assets help mitigate these. 

Trading at a forward P/E of 19x, below its peers, with a $24 target implying 20% upside, indicates Barrick is undervalued. When paired with the gold major’s financial discipline, high-margin projects, and shareholder focus, B stock is a top gold stock for 2025.

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