Within the global metals industry, the gold sector is essential because it offers long-term investors a profitable opportunity as well as a store of value in times of crisis. Gold continues to be one of the most sought-after precious metals in the world due to its historical use as a haven during times of inflation and geopolitical unrest, as well as its growing use in cutting-edge technologies.
According to Reuters, gold prices have risen to all-time highs as of March 2025, with spot prices hitting $2,936.38 per ounce and U.S. gold futures topping $2,956.10. Record central bank purchases, growing fears about inflation, and changing global monetary policies have all contributed to the surge, which has made gold a key asset class in an uncertain environment. Demand for gold as a safe haven has increased as a result of increased investor uncertainty brought on by the ongoing trade war between the United States and China, which has resulted in supply chain disruptions and retaliatory tariffs.
Gold produced a 43.83% return in 2024, significantly above the 20.89% gain of the whole market. Supported by over-the-counter investments and strategic central bank hoarding, especially in emerging nations like China and India, the total demand for gold hit a record high of 4,974 metric tons. For the third year in a row, central bank purchases topped 1,000 metric tons, according to the World Gold Council. Gold’s appeal is strengthened by this accumulation, which is a part of a larger trend of diversification away from the U.S. currency. The premium that investors are willing to pay in the current inflationary environment is reflected in the 9% increase in overall expenditure on gold jewelry, despite an 11% drop in demand for jewelry due to high costs.
Strong demand for investments further supports the market’s momentum. Demand for actual bars and coins remained stable at 1,186 metric tons, while ETFs saw no significant withdrawals for the first time since 2020. Due to gold’s use in semiconductor and artificial intelligence applications, technology use also increased by 7%. As gold moved from Asian markets like Dubai and Hong Kong to the U.S. due to favorable futures premiums and expected import duties, arbitrage opportunities drove an 80% increase in U.S. Comex inventories since late 2024.
Additionally, billionaire investors have increased their attention to the metals industry. According to the 2024 UBS Billionaire Ambitions Report, 40% of affluent investors intend to expand their holdings of gold and other precious metals in the upcoming year. Warren Buffett’s conglomerate has chosen mining stocks over actual gold, and Jeff Bezos and Bill Gates have invested $537 million in Africa’s rare metals sector. This is part of a larger strategy move toward assets linked to technology and sustainable energy. The fact that eight of the top 100 billionaires in Forbes have made their riches in mining and metals highlights the industry’s ongoing profitability.
To create our list of the 12 Best Gold Stocks to Invest In According to Billionaires, we examined Insider Monkey’s exclusive database of billionaire stock holdings. Based on the largest number of billionaire investors, as of Q4 2024, we have chosen the 12 best gold stocks. We have included the total value of billionaire holdings as a secondary criterion to rank the stocks that have the same number of billionaire holdings. We have also considered the number of hedge funds holding a stake in the respective stocks, as per Insider Monkey’s database of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Why Alamos Gold Inc. (AGI) Went Up On Thursday?
Aerial view of a gold mine with equipment mining the earth for resources.
Number of Billionaire Investors: 10
Number of Hedge Fund Holders: 37
With active mines and development projects in Canada, Mexico, and the U.S., Alamos Gold Inc. (NYSE:AGI) is a Canadian gold producer. With billionaire stakes totaling around $368.5 million, the company, which specializes in the discovery, development, and production of gold, is among the best gold stocks to invest in.
Sales of 118,000 ounces of gold at an average realized price of $2,802 per ounce helped Alamos Gold Inc. (NYSE:AGI) produce $333 million in revenue for the quarter that ended March 31, 2025. $53 million in cash taxes were the main cause of the $20 million negative free cash flow, even though adjusted net earnings of $60 million were reported. Prior to working capital adjustments, the business recorded an operating cash flow of $131 million. However, early-year operating difficulties, especially at Magino and Young-Davidson, were reflected in AISC’s earnings of $1,805 per ounce, which was higher than quarterly guidance.
Notwithstanding early difficulties, production reached 125,000 ounces in Q1 2025, with Island Gold producing 59,200 ounces with an average grade of 11.36 g/t. After correcting ore flow difficulties, Magino experienced an improvement in throughput to 9,500 tpd by late April, and by March, Young-Davidson mining rates were back to design levels. Mulatos provided 30,400 ounces, and it is anticipated that grades will rise during the year.
In addition to anticipating a 20% decrease in AISC for Q2, Alamos Gold Inc. (NYSE:AGI) reiterated its full-year production target of 600,000 ounces. The company is financing a number of expansion initiatives, such as the Phase 3+ expansion at Island Gold, which is currently 75% committed and expected to be finished by early 2026, with $290 million in cash and close to $800 million in liquidity. First production is anticipated in 2028 for the Lynn Lake project and 2027 for the PDA project. Alamos plans to increase throughput and make strategic advancements throughout its asset base in order to achieve a 1-million-ounce production profile in the long run.
Overall AGI ranks 7th on our list of the best gold stocks to invest in according to billionaires. While we acknowledge the potential of AGI as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AGI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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