Analysis of Gold Investment Strategies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: NASDAQ.COM
- Gold Investment Options: Short-term investors can opt for gold bullion or gold ETFs, while long-term investors should consider mining companies like Newmont, which generated $3.1 billion in free cash flow in Q1 2026, reflecting strong profitability from high gold prices.
- Mining Company Advantages: Newmont's production capacity grows with rising gold prices, and despite the complexities and capital intensity of mining operations, its long-term growth potential makes it a noteworthy investment choice.
- Streaming and Royalty Companies: Companies like Franco-Nevada, Royal Gold, and Wheaton Precious Metals provide upfront funding to miners in exchange for the right to purchase gold at favorable prices in the future, thereby reducing operational risks and achieving diversified revenue streams.
- Investor Recommendations: For long-term investors looking to add gold in 2026, streaming and royalty companies offer a more attractive business model; although they are relatively niche in the market, their stable profit margins and growth potential warrant further exploration.
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Analyst Views on NEM
Wall Street analysts forecast NEM stock price to rise
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 108.230
Low
89.00
Averages
110.85
High
125.00
Current: 108.230
Low
89.00
Averages
110.85
High
125.00
About NEM
Newmont Corporation is a gold company and a producer of copper, zinc, lead, and silver with operations and/or assets in the Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea regions. The Company's operations include Brucejack, Red Chris, Penasquito, Merian, Cerro Negro, Yanacocha, Boddington, Tanami, Cadia, Lihir, Ahafo, and NGM. The Brucejack operation includes four mining leases and six core mineral claims which cover 8,169 acres (3,306 hectares) and 337 mineral claims covering 298,795 acres (120,918 hectares). The Red Chris operation includes five mining leases which cover 12,703 acres and 199 mineral claims, encompassing an area of 164,903 acres (66,734 hectares). Penasquito includes 20 mining concessions for operations comprising 113,231 acres (45,823 hectares) and 60 mining concessions for exploration of 107,456 acres (43,486 hectares). The Merian operation includes one right of exploitation encompassing an area of 41,687 acres (16,870 hectares).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Mining Company Advantages: For instance, Newmont Mining generated $3.1 billion in free cash flow in Q1 2026, benefiting from high gold prices, showcasing the profit potential of mining companies during price surges, although their operational risks and capital-intensive nature cannot be overlooked.
- Streaming and Royalty Companies: Companies like Franco-Nevada, Royal Gold, and Wheaton Precious Metals mitigate operational risks by providing upfront cash to miners in exchange for the right to purchase gold at favorable prices, enabling long-term growth potential while maintaining diversified portfolios.
- Learning About Streaming Investments: Although streaming and royalty companies are relatively niche in the investment landscape, understanding these firms and their unique business models will be worthwhile for long-term investors looking to add gold exposure in 2026, as they offer better protection and profitability amid market volatility.
See More
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- Market Pressure Intensifies: The S&P 500 index fell 0.14%, the Dow Jones Industrial Average dropped 0.27%, and the Nasdaq 100 index decreased 0.34% as crude oil prices surged over 2% following fresh US attacks on Iran, indicating heightened sensitivity to geopolitical risks.
- Economic Data Impact: The April core PCE price index rose 3.3% year-on-year, meeting expectations, but the unexpected 1.1% decline in April capital goods new orders signals potential economic slowdown, which may heighten investor concerns about future growth.
- Rising Unemployment Claims: Initial jobless claims in the US increased by 5,000 to 215,000, exceeding expectations of 211,000, reflecting a weakening labor market that could prompt the Fed to adopt a more cautious stance in future policy decisions.
- Earnings Season Insights: As of now, 83% of the 479 S&P 500 companies that reported earnings exceeded expectations, with Q1 earnings projected to rise 12% year-on-year; however, excluding the tech sector, growth is only expected at 3%, highlighting a divergence in overall profitability.
See More
Investment Comparison: Newmont vs SSR Mining
- Newmont's Strong Performance: In fiscal year 2025, Newmont's sales rose 21% to $22.7 billion, with a net income of $7.1 billion, showcasing its robust competitiveness in the global gold market despite risks from commodity price volatility.
- SSR Mining's Turnaround: SSR Mining's revenue surged 66.5% to nearly $1.7 billion in FY 2025, achieving a net income of $402.7 million, a significant recovery from a $261.3 million loss in 2024, indicating strong business resilience.
- Financial Health Comparison: Newmont's debt-to-equity ratio stands at 0.2 with a current ratio of 2.3, reflecting its solid financial health, while SSR Mining maintains a lower debt-to-equity ratio of 0.1 and a current ratio of 2.1, indicating low leverage and good short-term liquidity.
- Future Outlook and Risks: While Newmont excels in cash flow and dividends, it faces notable legal and compliance risks; conversely, SSR Mining is poised to receive $1.5 billion from the sale of its Copler mine in Turkey, which could be used for expansion and shareholder returns, thereby reducing asset risk.
See More
Active Options Trading in Gold ETFs Amid Market Uncertainty
- Options Trading Trend: In both the SPDR Gold ETF (GLD) and VanEck Gold Miners ETF (GDX), options volumes leaned bullish, particularly as GDX rallied over 4% despite falling gold futures, indicating ongoing market confidence in gold.
- Bullish vs. Bearish Contrast: Over 10,000 call options were traded in GDX compared to only 4,400 puts, reflecting investor expectations for a price rebound, especially with the 100 and 110 strike calls expiring on June 18.
- Large Trade Signals: A trader spent over $1 million acquiring thousands of 85-strike puts in the GDX market, indicating concerns about potential declines in gold prices, contrasting sharply with the bullish call activity and highlighting market divergence.
- Market Uncertainty: Although gold is down nearly 20% from its all-time high in January, it has still risen 89% over the past two years, while gold mining stocks have surged 144%, reflecting complex market sentiments amid geopolitical uncertainties and unclear interest rate outlooks.
See More
Surge in Options Trading Volume for GameStop and Newmont
- GameStop Options Volume: GameStop Corp saw options trading volume of 110,203 contracts, representing approximately 11 million shares, which is about 110.4% of its average daily trading volume over the past month, indicating strong market interest in its future performance.
- High Demand for $30 Call Option: Notably, the $30 strike call option expiring on September 17, 2027, has seen 15,011 contracts traded today, equating to approximately 1.5 million shares, reflecting a significant bullish sentiment among investors regarding GameStop's stock price.
- Newmont Options Activity: Newmont Corp experienced options trading volume of 74,166 contracts, representing around 7.4 million shares, which is approximately 106.9% of its average daily trading volume over the past month, showcasing ongoing market interest in the company.
- Active Trading of $50 Call Option: The $50 strike call option expiring on June 18, 2026, has recorded a trading volume of 27,003 contracts, or about 2.7 million shares, indicating a positive outlook among investors for Newmont's future performance.
See More
SPMO Stock Price Analysis and ETF Dynamics
- Price Fluctuation Analysis: SPMO's 52-week low is $103.88 per share, with a high of $149.60, and the last trade was at $149.58, indicating the stock is near its peak, potentially attracting investor interest.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and price movements effectively.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting the liquidity and market performance of the ETF.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs helps identify those experiencing significant inflows or outflows, allowing investors to evaluate the impact on underlying holdings and make more informed decisions.
See More
New Strategies for Gold Investment in 2026
- Gold Investment Misconception: While purchasing physical gold or gold ETFs like SPDR Gold Trust offers direct exposure to precious metals, long-term investors may find this approach overly reliant on gold price fluctuations, making effective asset diversification challenging.
- Mining Company Advantages: For instance, Newmont Mining generated $3.1 billion in free cash flow in Q1 2026, benefiting from high gold prices, showcasing the profit potential of mining companies during price surges, although their operational risks and capital-intensive nature cannot be overlooked.
- Streaming and Royalty Companies: Companies like Franco-Nevada, Royal Gold, and Wheaton Precious Metals mitigate operational risks by providing upfront cash to miners in exchange for the right to purchase gold at favorable prices, enabling long-term growth potential while maintaining diversified portfolios.
- Learning About Streaming Investments: Although streaming and royalty companies are relatively niche in the investment landscape, understanding these firms and their unique business models will be worthwhile for long-term investors looking to add gold exposure in 2026, as they offer better protection and profitability amid market volatility.
See More
