Written by Daniel Da Costa at The Motley Fool Canada
Gold has always been a safe haven asset. When inflation picks up, when interest rates are uncertain, or when geopolitical risks are rising, gold or gold stocks are often one of the first places investors turn.
It’s not just a hedge, it’s also a store of value. That’s why even in a market filled with tech stocks and growth stories, gold still plays a key role in a diversified portfolio.
In 2025, the price of gold has continued to hit new record highs once again. Central banks are still navigating the balance between inflation control and economic growth. Global tensions have added another layer of uncertainty. And with investors looking for protection, gold has been one of the strongest-performing assets this year.
And the best part about gold is that there’s more than one way to gain exposure to precious metal. For example, you can invest in gold miners, you can buy exchange-traded funds (ETFs) that hold a basket of gold stocks, or you can simply track the price of gold itself through a commodity fund.
So, if you’re looking to gain exposure to gold now, here are three of the best ways you can add gold stocks to your portfolio.
For many investors, the ideal way to gain exposure to the price of gold is to buy a high-quality gold stock like Newmont (TSX:NGT).
Newmont is one of the largest gold producers in the world. If you want direct exposure to a gold stock that’s highly leveraged to the price of gold, this is one of the go-to names. And unlike holding gold itself, which just sits there and offers no yield, Newmont is a business that generates revenue, pays a dividend, and has operational upside.
The biggest advantage of owning a stock like Newmont is its potential to outperform the price of gold when gold is rising. That’s because higher gold prices typically expand profit margins for miners.
The cost to produce an ounce of gold is relatively fixed, so when gold prices go up, Newmont can earn significantly more without increasing its expenses. That’s why gold stocks are said to be leveraged to the price of gold.
However, leverage goes both ways. If the price of gold drops, margins get squeezed. On top of that, gold miners are still businesses, which means they face risks outside of just gold prices, such as operational setbacks, labour issues, cost overruns, or political instability in key mining regions, which can all impact performance.
Since individual gold stocks are leveraged to the price of gold, but they face operational risks just like any other stock, some investors prefer to own an ETF like iShares S&P/TSX Global Gold Index ETF (TSX:XGD).