Gold made new, all-time highs in August of 2020. Since then, it's been weak, while other assets have outperformed. Yet, it's likely that gold will remain strong given expectations of increasing inflation. Alamos Gold (NYSE:AGI), AngloGold Ashanti (AU), Yamana Gold (NYSE:AUY), Gold Fields Limited (NYSE:GFI), and B2Gold Corp. (NYSE:BTG) are 5 miners with major upside.Throughout human history, gold and silver have functioned as money due to their rareness and unique properties. Precious metals are a proven medium of exchange, portable, divisible, interchangeable, durable, and valued across the world. It’s remarkable that human civilizations of different eras, cultures, and geographies - all valued gold and silver, even though they had wildly different beliefs and ways of life. It almost seems as if the value of these assets is wired into our DNA.
Until 1971, all major currencies were backed by gold reserves, however, this changed under the Bretton-Woods agreement which severed the link between fiat currencies and gold. Now, gold and silver are less seen as money and more viewed as an investment option to protect purchasing power and tend to outperform during periods of high inflation and weak economic growth. Besides investment demand, there is also industrial demand for gold and silver due to their antimicrobial properties and ability to conduct electricity.
While many investors choose to invest in precious metals through ETFs, coins, or bullion, another option is to invest in gold and silver mining stocks. During bull markets, miners are the best performing group in the precious metals complex as any gains in the price flow straight to the bottom line. Of course, the key is to find miners with low costs and increasing production. 5 gold and silver miners with these characteristics are Alamos Gold (AGI), AngloGold Ashanti (AU), Yamana Gold (AUY), Gold Fields Limited (GFI), and B2Gold Corp. (BTG).