Investing in precious metals stocks can be both a rewarding and profitable experience. While these assets have historically served as a hedge against inflation, their true growth potential often remains untapped.
Precious metals like gold and silver have been on a tear in the last year, with gold rivaling the performance of the S&P 500 Index. Investors turned to these hard assets amid rising inflation and higher interest rates over the last 24 months. However, despite economic conditions improving, there are still risks in the economy that can drive these metals even higher.
Concerns about de-dollarization, rising geopolitical tensions and debt across the globe remain constant. These three factors alone are a positive backdrop for the sector. With demand remaining strong, investors can diversify their portfolios with precious metals to set them up for long-term success.
Now, here are the top three overlooked precious metals stocks to quadruple your money through 2032!
Wheaton Precious Metals (WPM)
Wheaton Precious Metals (NYSE:WPM) stands out as one of the top precious metals stocks to buy in 2024. As a precious metals streaming company, WPM is less exposed to the operational risks of mining. This provides the company with more stability as it continues to benefit from higher commodity prices.
Wheaton Precious Metals is an extremely compelling pick for investors in 2024. The stock recently surged past its all-time high and has been a major beneficiary of higher gold prices. However, you cannot say the same for other precious metals mining companies that continue to struggle with operational challenges. Higher gold prices haven’t necessarily translated to growing earnings. Wheaton’s lean structure, which includes purchase agreements, allows it to maintain high-profit margins. In the first quarter of 2024, the company’s revenue increased 38% year-over-year (YOY) to $297 million. Net earnings swelled 47% YOY to $164 million, or 36 cents per share. Wheaton’s portfolio of high-quality assets and predictable cost structure has contributed to its stock outperforming many of its mining peers. This stability makes it well-positioned to quadruple in value by 2032.
Harmony Gold (HMY)
Harmony Gold (NYSE:HMY) is a lesser-known precious metals mining company that is just getting started in 2024. As the largest gold mining company in South Africa, Harmony has ascended to glory in the past year.
Harmony Gold operates several mines in South Africa, with additional operations in Australia and Papua New Guinea. The company has a strong track record of operational excellence and sustainable mining practices since its founding in 1950. Its high-grade asset portfolio and strong cash flows have significantly boosted its profitability in the last year. Additionally, its robust balance sheet and extensive reserves allow it to weather economic storms as they emerge. In 2023, Harmony produced 1.46 million ounces of gold, and CEO Peter Steenkamp guided for more than 1.55 million ounces in FY24. This steady increase in production has significantly boosted the company’s average recovered grades for gold, as well as its operating cash flow. With gold prices surging towards $2,500 an ounce, HMY stock is among the top precious metals stocks to buy now.
Fortuna Mining (FSM)
Fortuna Mining (NYSE:FSM) is another precious metals stock with considerable long-term growth prospects. Over the last few years, the company has seen an acceleration in revenue growth and has strengthened its liquidity. Additionally, its rebranding makes it well-positioned to benefit from higher silver and gold prices.
Fortuna Mining is one of the top precious metals stocks to buy and hold through 2032. The company currently operates five mines, located in Argentina, Burkina Faso, Mexico, Peru and Cote d’Ivoire. Additionally, it is also exploring other mining opportunities in Senegal, Africa. This diversified pipeline of mining projects across many different regions positions the company for growth in the years ahead. In Q1 FY24, revenue increased 28% YOY to $225 million. Net earnings skyrocketed 141% YOY to $26.25 million, with gold production up 20% from the year prior. Furthermore, the company has significantly reduced its long-term debt, which fell 42% YOY in the first quarter. These positive developments position Fortuna Mining to outperform the market through 2032.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
