Two Best-in-Class Gold Stocks to Buy on the Dip

Has the gold trade lost its luster? After surging to nearly $4,400 an ounce, the spot price of gold has fallen back to around $4,000 an ounce. But is gold simply taking a break or is this the beginning of a longer turn reversal in the yellow metal’s price? And how does that affect the case for gold stocks?

Let’s look at the arguments on both sides. The bear case against gold and gold stocks comes from renewed interest in stocks as a trade agreement with China appears more likely. Gold is typically a flight-to-safety trade when investors are concerned about equity performance.  

On the other hand, the price of gold is often a referendum on the strength of the U.S. dollar. And right now, the greenback is facing a lot of headwinds. The U.S. government continues to increase both its debt and its deficit in numbers measured in the trillions of dollars. In fact, the U.S. is now paying more to service its debt (i.e., pay the interest on the debt) than it does for any non-discretionary item in the budget. 

It’s not a sustainable path, which is why many central banks are turning to gold. I recently wrote for StockEarnings readers: 

In recent years, central banks have been buying physical gold at an unprecedented pace. In fact, global central banks have added 415 tons of gold to their reserves in 2025 alone. And, the United States has recently become a net importer of gold — a rare trend that underscores rising domestic demand. 

These aren’t signs that things are business as usual. They point to the idea that institutional investors view gold as a necessary hedge against the decline in value of the U.S. dollar and other fiat currencies. Investors, and more importantly, governments are looking at gold as a reliable monetary asset in a world that’s running out of alternatives. 

It’s a debasement trade, and with Congress still shut down, debating how many trillions of dollars it can spend, that trade will have legs. In fact, some analysts forecast a $5,000 spot price of gold by the end of the year, and more gains to come in 2026.  

SPDR Gold Shares ETF: Easy Access to the Upside in Gold Stocks 

Many investors don’t want to invest in physical gold. Truth be told, they may be skeptical about the entire gold trade. Still, FOMO (fear of missing out) is a powerful itch to scratch. That’s where an exchange-traded fund (ETF) like the SPDR Gold Shares ETF (NYSEARCA: GLD) can be a profitable alternative.  

GLD is different from other ETFs that track a basket of different stocks. Instead, this ETF is 100% linked to the price of physical gold bullion. That makes it a simple, liquid, and transparent way to get exposure to gold.  

The ETF has an expense ratio of 0.4%, which is relatively expense for an ETF. However, many investors are willing to bear that price compared to shipping, insuring, and storing gold bars and coins.  

Plus, investors get the benefit of higher liquidity. You can buy and sell shares just like a stock. This is why many investors prefer this ETF to mining stocks, which can be impacted by risks outside of the price of gold. This is important because many investors who choose to invest in ETFs versus individual gold stocks aren’t looking for a long-term investment.  

Only about 42% of the fund’s shares are owned by institutional investors. However, they’ve been strong net buyers in the last three months, with buying outnumbering selling by about 3-to-1.  

Newmont: A Gold Miner Positioned for the Next Bull Run 

Investors seeking direct exposure to gold’s upside should consider Newmont Corp. (NEM), one of the world’s largest and most efficient gold producers. With operations across North and South America, Africa, and Australia, Newmont combines scale with geographic diversification, helping it weather volatility in gold prices. The company has a strong track record of maintaining low production costs, which is critical as gold prices fluctuate. 

Newmont’s balance sheet also stands out. The miner has a history of prudent capital allocation, consistent dividend payments, and significant free cash flow, giving it the flexibility to invest in new projects, acquire strategic assets, or return capital to shareholders. This financial strength becomes especially valuable if gold prices surge toward the multi-year highs forecast by some analysts. 

Analysts are raising their price targets since Newmont reported earnings on October 23. However, this trend was in place before the report. Many of those targets are above the consensus price of around $90 per share, with Bank of America posting the highest target of $115, which is a 47.5% increase from the stock’s closing price on October 27.  

For investors looking for “best-in-class” gold stocks, Newmont is a compelling choice. Its operational efficiency, global footprint, and strong financial position make it one of the premier ways to capitalize on a continued gold bull market.