Gold (GCG25) is a shield for wealth. In times of inflation, geopolitical tension, or currency turbulence, this precious metal stands tall as the ultimate hedge. Its reputation as a wealth preserver and crisis-proof investment attracts both seasoned investors and those new to the game. With its enduring allure, gold remains the bedrock of stability in an unpredictable financial landscape.
In fact, the precious metal is off to a stellar start in 2025, with its price flirting with the all-time high reached last October. A weakening U.S. dollar, fueled by President Donald Trump’s push for lower interest rates and tariff-related uncertainty, has set the stage for gold’s rally. Investors are flocking to the metal as inflation fears mount, central banks maintain an accommodative stance, and low rates enhance its appeal. At the same time, the sliding dollar makes it even more attractive to international buyers.
Considering these factors, gold is once again proving to be a beacon of stability and opportunity in a volatile economic landscape. And with such powerful catalysts in play, two gold stocks, Alamos Gold (AGI) and Pan American Silver (PAAS), present compelling opportunities for investors eager to ride the wave. As market dynamics continue to align in favor of the precious metal, here’s a closer look at these two gold miners.
Gold Stock #1: Alamos Gold
Canada-based Alamos Gold (AGI) has diversified operations spanning North America, including the high-performing Young-Davidson Mine and the Island Gold District in Ontario, along with the Mulatos District in Sonora, Mexico. The company is fueling its growth through transformative initiatives, such as the Phase 3+ Expansion at Island Gold and the ambitious Lynn Lake project in Manitoba.
Valued at approximately $8.5 billion by market capitalization, shares of this gold miner have soared almost 68% over the past year, outpacing the broader S&P 500 Index’s ($SPX) gain of 24% during the same stretch.
On Nov. 6, Alamos Gold delivered an impressive third-quarter performance, with operating revenue soaring 40.9% year-over-year to reach $360.9 million. This surge was driven by higher gold prices and a boost in sales volumes, pushing the company’s revenue slightly past analyst expectations. Adjusted EPS of $0.19 fell short of Wall Street’s predictions but still marked 35.7% annual growth.
Alamos Gold produced a record 152,000 ounces of gold in the quarter, a notable 12.3% increase from last year, perfectly aligned with management’s guidance. This outstanding performance was fueled by the successful integration of the Magino mine, alongside contributions from the Island Gold mine and the Mulatos District.
Earlier this month, on Jan. 13, the company revealed its Q4 and 2024 production figures. Total gold production increased by 7% from 2023, hitting a record 567,000 ounces. With a strong finish to the year, the company produced 140,200 ounces of gold in Q4, right in line with its quarterly guidance. Furthermore, Alamos wrapped up the year with $325 million in cash and cash equivalents, a notable increase from $225 million at the close of 2023.
For 2025, management is aiming high with a total gold production target of 580,000 ounces to 630,000 ounces.
Wall Street also appears highly optimistic about AGI stock, with a consensus “Strong Buy” rating overall. Of the 10 analysts offering recommendations, nine advise a “Strong Buy,” and the remaining one suggests a “Moderate Buy.”
The average analyst price target of $24.84 indicates 23.3% potential upside from the current price levels, while the Street-high price target of $32.56 suggests that AGI could rally as much as 61.7% from here.
Gold Stock #2: Pan American Silver
Canada-based Pan American Silver (PAAS) boasts a sprawling portfolio of mines across Canada, Mexico, Peru, Brazil, Bolivia, Chile, and Argentina. Adding to its impressive assets, the company owns the Escobal mine in Guatemala and holds interests in a range of promising exploration and development projects.
Presently standing at a market cap of around $7.9 billion, Pan American Silver, like Alamos, has outshined the broader market over the past year, delivering gains of roughly 59%.
The gold and silver miner dropped its Q3 earnings report on Nov. 5. The company achieved record revenue of $716.1 million, marking a 16.2% year-over-year jump but missing Street forecasts. Its adjusted earnings per share skyrocketed to $0.32, up from just $0.01 last year, blowing past estimates by a stunning 52.4% margin.
During the quarter, Pan American Silver reported gold production of 225,000 ounces. The company's record-breaking financial results for Q3 also included $151.5 million in free cash flow. This milestone was driven by improved operating margins, stemming from increased production and rising silver (SIH25) and gold prices compared to Q2 2024.
On Jan. 15, Pan American Silver released its Q4 and 2024 production results, highlighting a total of 892,000 ounces of gold produced throughout the year, in line with management’s guidance. The company closed out the year strong, with 224,000 ounces of gold produced in Q4 alone. Furthermore, as of Dec. 31, the company reported a significant boost in its liquidity, with cash and cash equivalents reaching $862.8 million, alongside short-term investments totaling $24.5 million.
The cash position includes $306.6 million in proceeds from the sale of its 100% interest in La Arena S.A. With its revolving credit facility remaining undrawn, the company’s total available liquidity is expected to reach approximately $1.6 billion by year-end, positioning it well for future growth and strategic initiatives.
Overall, PAAS stock has a consensus “Strong Buy” rating. Out of the eight analysts offering recommendations for the stock, six recommend a “Strong Buy,” one suggests a “Moderate Buy,” and the remaining one gives a “Hold” rating.
The average analyst price target of $27.10 indicates potential upside of 24.5% from current price levels. The Street-high price target of $33.30 suggests that PAAS stock could rally as much as 53%.
