15 Ways to Invest in Gold

As the Federal Reserve takes on more and more debt to support the economy through the Covid-19 pandemic, an increasingly large group of investment experts and contributors to MoneyShow.com are looking to gold as a hedge against future inflation. Here are 15 ways for investors to gain exposure to the gold sector. Mark Skousen, Five Star Trader Gold is still the place to be in 2020 and I've found a gold mining company that fits our Five Star investing criteria: Newmont Mining Corp. . The Colorado-based company the world's largest gold mine operation with a dozen high-quality assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia and Ghana. Newmont is in great shape during this time of turmoil. Profit margins exceed 33% and return on equity (ROE) is 21%. Revenues shot up 43% to $10.5 billion, and with low costs of production, the higher gold price has caused earnings to skyrocket 844% to $3.6 billion. The company has a solid balance sheet, with $3.9 billion in cash, which is plenty to manage its $6.8 billion in long-term debt. The stock has risen sharply this year, but was recently still selling for only 12 times earnings, and has a price-to-earnings (PEG) ratio of 0.99. A PEG ratio under 1 is considered excellent. Last month, the company also announced it would raise its dividend to $0.25 per share, or $1 a year. Sean Broderick, Wealth Megatrends The Fed is telling Wall Street it will print money forever. Indeed, you can print fiat currency all you want. But it devalues that currency -- in this case, the U.S. dollar. But you can't print gold! You can't devalue it. And the Fed's actions are simply more fuel for a Midas metal rally already supported by strong fundamentals. So, how do we play the move? Junior gold miners have outperformed the seniors recently - and that's exactly what you'd expect to see in a precious metals bull market. For a new addition to our portfolio, the best thing to do is buy VanEck Vectors Junior Gold Miners ETF . The ETF gives you a basket of 76 gold and silver mining companies. Top holdings include Kinross Gold , Pan American Silver and Gold Fields . Carl Delfeld, Cabot Global Stocks Explorer I have been searching for a good gold stock. I think I have finally hit pay dirt. Canada's Kirkland Lake Gold owns and operates four underground gold mines and milling facilities Canada and Australia. Kirkland ended the most recent quarter with $531 million in cash and cash equivalents and no debt. And this is after it recently doubled its dividend and used $330 million to repurchase shares. In addition, Kirkland has exceptionally low production costs and high efficiency. Even after factoring in the added costs related to its recent buyout of Detour Gold, Kirkland has delivered an operating margin of well over $900 cash per ounce of gold at current spot prices. Having high levels of free cash flow and working capital is especially important for mining companies in this time of Covid-19. While Kirkland Lake has already halted all exploration activity, it is still in operation. Kirkland's latest quarter delivered 40% profit margins, 14.7% return on assets and 22.9% return on equity. It is always a good idea to have some gold in your portfolio. Kirkland Lake Gold fits the bill. Gavin Graham, Internet Wealth Builder Gold is often referred to as portfolio insurance, partially because it is not correlated with many other assets, and also because the supply cannot be increased rapidly, unlike paper (fiat) currencies. Pan American Silver Corp. is the largest primary silver producer in the world with a diversified portfolio of producing assets in mining-friendly jurisdictions like Peru, Mexico, Canada, Argentina, and Bolivia. Pan American remains a Buy for its widely-diversified geographical exposure to silver mining in mining-friendly jurisdictions, the benefit it will receive from higher gold and silver prices, and lower local currency operating costs in Latin America. It also benefits from the potential of the reopening of the Escobal mine in Guatemala that it acquired through its acquisition of Tahoe Resources in 2019. Escobal produced almost as much silver as the rest of Pan American in the last 12 months of its operations in 2017-18. First Mining Gold and owns 7 million ounces of measured and indicated gold and precious metals resources in mining-friendly jurisdictions in Ontario, Quebec, and Newfoundland. With no production, it is purely an asset play, so it is both illiquid and volatile. First Mining's largest property, the Springpole mines, is one of the largest undeveloped open pit gold deposits in Canada. First Mining remains an interesting target for an acquirer looking for proven resources in mining-friendly jurisdictions. At $9 per ounce of indicated gold, Fist Mining sells at a big discount not only to other North American developers ($38 per ounce average) but even to non-North American developers at $34 per ounce. It remains a speculative buy. Tony Sagami, Weiss Ultimate Portfolio July could be a disaster. Not only do I expect a flurry of horrible earnings reports, but I also expect consumer spending to nosedive. This comes at the same time as the coronavirus is surging in new parts of the country. The stock market has been trading like everything is fine, all systems are go and the rumored V-shaped recovery is right around the corner. I don't think so -- which is why we are loaded up on precious metals. I am now recommending U.S. Global GO GOLD and Precious Metal Miners ETF , which is a unique precious metals ETF. Instead of investing in traditional gold miners, it instead invests in mining stocks on a royalty basis. Royalty companies invest a fixed amount into a specific gold or silver mine exchange for the rights to purchase whatever gold and/or silver that is pulled out of the ground at predetermined, below market price. Royalty companies do not have operational or development costs as a typical a miner does. The only major risks are an unproductive mine or a drop in the price of gold. Omar Ayales, Gold Charts R Us The new force driving demand for gold may have shifted from safe haven buying to inflation expectations, while speculation grows that hyperinflation will erode the purchasing power of global currencies. Our indicators suggest that a combination of a strong gold price and a strong stock market will allow gold mining shares to thrive. One of my longtime favorites is Agnico Eagle Mines . It's a great senior miner with a stellar management team. Moreover, its movement tends to be strongly correlated to the price of gold. Agnico Eagle is looking strong above the March uptrend near $58. If it holds above support, The stock could rise to its recent high near $70 initially. Another company I like is B2 Gold . It's a Canadian miner, with great assets and management, and with tons of cash. It's also held up stronger than most gold miners and it looks poised to rise together with gold. As with other gold miners, it's holding up above the March uptrend, showing upside potential. Buy some on a dip to the lower $5 level. Frank Holmes, US Global Investors' Frank Talk The Fed's balance sheet stands at $7 trillion, or 33% of U.S. GDP. And the Treasury's public debt soared past $26 trillion, an incredible 120% of the entire U.S. economy. This isn't sustainable. Both Morgan Stanley and Citigroup maintain their call for $2,000 gold by mid-2021. Our preferred way to get exposure is with gold and precious metal royalty and streaming companies, which have historically had strong availability of capital, substantially higher margins than producers and organic growth opportunities with limited required capital. They've also provided investors with a highly diversified set of active mines. We believe royalty companies, which had an impressive first quarter, feature a superior business model in the metals industry. The shares in five royalty companies -- Franco-Nevada , Wheaton Precious Metals , Osisko Gold Royalties , Sandstorm Gold and Royal Gold -- have increased sixfold since 2007. I'm not the only one who likes these companies, though. Ray Dalio, the billionaire hedge fund manager of Bridgewater (the largest hedge fund in the world), is a big gold bug. According to Bridgewater filings for the March quarter, SPDR Gold Shares , which invests in physical gold, stood as Dalio's second largest holding, valued at more than $600 million. Included in his holdings are royalty streaming firm Franco, Wheaton and Royal Gold, with a combined value of $12.6 million. Go gold! Brett Owens, Contrarian Outlook Royal Gold is one of my favorite go to plays on gold. It's my kind of company -- high on assets and cash flows, and light on the number humans that work there! The firm owns royalty rights for gold exploration. An amazing 70% to 75% of its revenue drops to its bottom-line profits. The firm's secret? It doesn't actually mine anything. The company sells precious metal (mostly gold) rights, royalties and interests. Royal Gold lets its partners do the heavy lifting (actual mining). Thanks to this capital light model, the firm collects an impressive $18.4 million dollars per year per employee (number two in the entire S&P 500 according to S&P Capital IQ). As with any good business model, let's also keep an eye on Royal Gold's competitors. Fellow precious metal royalty firms Franco Nevada and Wheaton Precious Metals also mint money when the metals are heading higher. All three pay dividends. At 1% annually we are not going to retire off of these dividends alone. We can, however, double our money in a very short period of time. And hey, in a world where savings accounts pay zero, a modest yield with 100% upside isn't bad at all. I'll be keeping an eye on these royalty streamers for a potential entry point. For now, I do anticipate the upper hand will shift back towards deflation in the near-term. And that a stock market plunge may make the Fed print more - which may then further set the stage for inflation.

15 Ways to Invest in Gold

You can't print gold. You can't devalue it. It is always a good idea to have some gold in your portfolio.

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