What are gold stocks?

Gold stocks are public companies that extract, process, finance and trade gold. The best gold stocks on our list above are focussed on either gold mining or gold streaming. Gold mining is the practice of extracting gold ore from the earth and processing it into gold bullion.

Is pure gold mining a good stock to buy in 2020?

Pure Gold Mining is one of the top-performing gold stocks in 2020, up over 220% year-to-date. The company recently announced it had delivered the first ore to its mill, with first gold production scheduled for this month.

Are gold stock prices volatile?

Gold stock prices may not be as volatile as the price of gold. They can offer a potential hedge against inflation. The price of gold tends to be inversely correlated to the U.S. dollar, so a strong dollar could hurt your investment. Gold is a volatile commodity, so gold prices—and the profits of gold companies—can be unstable.

Should you buy physical gold or gold stocks?

Whether you choose to buy physical gold or gold stocks depends upon your own goals and requirements. If you have the space to store gold and want to own a tangible asset, physical gold may be the better choice. However, if you’re simply looking to profit from changes in gold prices, gold stocks may be a better option.