Gold remains an attractive target as the Forex and cryptocurrency markets continue to demonstrate high volatility. After rising above the $2,000/ounce price level for the first time in its history in 2020, investors turned their attention towards gold stocks as a way to diversify their portfolio. Despite an expected correction in 2021, gold remains at a level that provides good opportunities in this ever-evolving market.
Investors, who want gold exposure or just want to take advantage of cheap Canadian junior miners, can consider the following gold stocks to buy:
Kinross is one of the best gold stocks in Canada. The company has a market cap of nearly $9 billion. It has diverse operations worldwide, including the United States, South America, and Africa. Despit that, the stock has still seen a substantial decline over the past year.
The cheap price of the mining stock means it trades at just 10.8 times its forward price-to-earnings ratio. However, this gold stock pays a dividend which yields 2.2%. This means you can start collecting passive income while you wait for the stock to rally back to its fair value.
This is one of the larger, more established gold stocks with a lot of upside potential, making Kinross one of the best mining stocks to buy today.
Equinox Gold offers a lot of growth potential. It is currently trading at a forward price-to-earnings ratio of just 11 times. However, its growth potential over the next few years makes it one of the most interesting gold stocks you can buy today.
Equinox stock is trading cheap right now but the company is expected to produce 600,000 ounces of gold in 2021. Its outlook for the next three years is even better. This significant increase in Equinox’s production will be a major contributor to the stock’s growth.
Finally, B2Gold (TSX:BTO)(NYSEMKT:BTG) is another mining stock that investors can buy for exposure to the gold industry.
B2Gold is a junior Canadian gold miner with very little debt that earns massive amounts of cash flow each quarter. B2Gold is so cheap at current prices that its forward price-to-earnings ratio is just 6.2 times. Compared to Kinross’ ultra-low EV/EBITDA ratio of 3.6 times, B2Gold’s forward EV/EBITDA is only 2.6 times.
This makes B2Gold’s mining stock one of the cheapest today. This contributes to the gold stock being one of the top mining stocks to buy in this environment. Additionally, its dividend currently yields an impressive 4.5%.
If you are looking for high-quality Canadian gold stocks to buy while mining stocks are undervalued, these three are some of the best gold stocks to consider.