The two stocks to buy over gold right now

Gold price has been rallying since the start of the year, hitting an all-time high of $2431 on April 12.

However, Saqib Iqbal, a financial analyst at Trading.Biz, thinks that there’s a better way to expose your portfolio to gold, i.e., gold stocks selling at a discount.

• Discounted gold stocks are the best way to add gold to the portfolio.
• Harmony Gold (HMY) sees solid growth, trading below $10 with a 376% five-year return and 1.33% dividend yield.
• Gold Fields (GFI) offers a strong opportunity, trading below $20 with a 337% five-year return and 2.36% dividend yield.

He said, “After hitting an all-time high, buying gold is expensive. A great way to get exposure to gold stocks in one’s portfolio is to buy gold stocks.

Two gold stocks trading at a discount are Harmony Gold Mining Company Ltd (NYSE: HMY) and Gold Fields Ltd (NYSE: GFI). With prices below $20, these stocks offer a great way to add glitter to your portfolio.”

Harmony Gold Mining Company Ltd (NYSE: HMY)

Harmony Gold sales have been in an uptrend for the past decade, and what’s surprising is the stock is trading below $10. A five-year return on HMY has been 376% and over 100% in the last 12 months, outperforming the SPDR Gold Trust, which has returned 82%.

Since the start of 2024, the stock has increased by more than 45%. Furthermore, the company’s stock positions have changed recently due to investments by institutional investors and hedge funds.

During the 1st quarter, Shilanski & Associates Inc. acquired a new stake of $225,000 in Harmony Gold Mining. The first quarter of 2024 saw GAMMA Investing LLC increase its holdings in Harmony Gold Mining by 29.2%.

What’s interesting to look at is its current dividend yield of 1.33%. It’s a no-brainer stock if you want a gold stock in your portfolio.

Gold Fields Ltd (NYSE: GFI)

With a market cap of $16.1 billion and sales consistently increasing for the past five years, Gold Fields is one of the best gold mining companies to invest in. However, the stock is trading at less than $20.

For the past five years, GFI has returned over 337%; in 2024, it has gained more than 24%.

There have also been several changes in institutional investors‘ positions in the stock recently. As of the third quarter, Scotia Capital Inc. held 3.6% more shares of Gold Fields than it did a year ago.

Sequoia Financial Advisors LLC increased its holdings in Gold Fields Limited by 2.9% in the fourth quarter. What’s more, the current dividend yield of GFI is 2.36%.

Saqib says if you want your money to work for you in the long run, stocks—not gold—are where to put it. You are getting the best of both worlds by picking these gold stocks at a discount.