2 Top Precious Metals Stocks to Buy on the TSX Today

Investing in commodities that are hot right now and in the future can be a great way to put your money to work in the market.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Stock market investing is an excellent way to put your money to work for you to make more money. By investing in the right companies, you can gain exposure to the success of various sectors without getting directly involved. Investing in the mining industry is always a terrific way to gain exposure to the commodities market.

Investing in commodities like gold and other precious metals is a good way for investors to protect their capital during turbulent market conditions. Safe-haven assets like gold appreciate in value when broader markets are volatile, giving opportunities to savvier investors to reallocate their portfolios and position them for growth.

As of this writing, the S&P/TSX Composite Index is down by 8.61% from its 52-week high. The weakness in the Canadian benchmark index means it might be a good time to invest in precious metals and publicly traded companies that deal with them. To this end, I will discuss two of the top precious metals stocks you can consider adding to your portfolio today.

Barrick Gold

Created with Highcharts 11.4.3Barrick Gold PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

If you want exposure to rising gold prices, investing in mining stocks like Barrick Gold (TSX:ABX) can be an excellent strategy. The $39.80 billion market capitalization mining company specializes in producing gold and copper. Operating 16 sites in 13 countries worldwide, the Toronto-based mining company is the top pick for many investors looking for gold exposure.

The company is well-run, benefits from rising gold prices due to improved margins, and does not operate in unstable jurisdictions. These factors significantly reduce the risks it faces in operations compared to many industry peers. That said, Barrick Gold has only grown its free cash flow by just 18% in the last five years. The economic turmoil can benefit the company and increase shareholder value if it persists.

As of this writing, Barrick Gold stock trades for $22.67 per share. Down by 19.58% from its 52-week high, it offers its shareholders their payouts at a 2.39% dividend yield.

Wheaton Precious Metals

Created with Highcharts 11.4.3Wheaton Precious Metals PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Wheaton Precious Metals (TSX:WPM) offers you another way to gain exposure to the precious metals segment. Unlike Barrick Gold, Wheaton Precious Metals is not a gold mining company.

Instead, it operates as a royalty company offering capital to gold miners in exchange for purchasing the mined product at lower prices in the future. Once it acquires the commodity at lower rates, the company sells it at a profit. With the profit, it then funds additional mining operations, generating more profits.

The Vancouver-based $27.02 billion market capitalization company has fewer assets, primarily operating as a financial partner.

This business model significantly reduces the risk to itself while enjoying substantial profits when precious metals like gold and silver perform well. Over the last decade, Wheaton Precious Metals stock has returned 151% in dividend-adjusted gains to its investors.

As of this writing, Wheaton Precious Metals stock trades for $59.68 per share. Down by 16.40% from its 52-week high, it pays its shareholders their payouts at a 1.37% dividend yield.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Wheaton Precious Metals Corp. made the list!

Foolish takeaway

Typically, gold prices and interest rates have an inverse relationship. When interest rates rise, gold prices go through pullbacks.

However, the last year has seen gold prices gain momentum, despite a meteoric rise in interest rates. Investing in stocks that benefit from rising gold prices can be a great way to protect your portfolio from the harsh market environment.

Priced at 15.29 times forward earnings, Barrick Gold stock seems the more attractively priced of the two. While seemingly expensive at 32.15 times forward earnings, Wheaton Precious Metals stock also has the potential to surge significantly in the coming weeks. If I were to choose between the two, I would take Barrick Gold stock as my top pick.

Should you invest $1,000 in Meta Platforms right now?

Before you buy stock in Meta Platforms, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Meta Platforms wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,058.57!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*.

See the Top Stocks * Returns as of 2/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Metals and Mining Stocks

Safety helmets and gloves hang from a rack on a mining site.
Metals and Mining Stocks

Best Stock to Buy Right Now: Barrick Gold vs Agnico Eagle?

Agnico-Eagle Mines stock continues to soar off of strong results while Barrick Gold grapples with political troubles in its African…

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Stocks for Beginners

What to Know About 2 Canadian Mining Stocks for 2025

Mining stocks can be a strong investment, or a bit of a wild ride. So where do these two top…

Read more »

nugget gold
Metals and Mining Stocks

2 Gold Stocks to Consider in the Wake of Trump Tariffs

Investing in gold mining stocks such as Kinross can help you diversify your portfolio and lower overall risk.

Read more »

Metals and Mining Stocks

Value Hunters: It’s Time to Snap Up These TSX Gems

Investing in undervalued gems such as MAG Silver should help you beat the broader markets in 2024 and beyond.

Read more »

A plant grows from coins.
Stocks for Beginners

3 Top Basic Materials Sector Stocks for Canadian Investors in 2025

These three Canadian stocks certainly have a strong future ahead, and now might be time to buy the dip.

Read more »

todder holds a gold bar
Stocks for Beginners

Outlook for Barrick Gold Stock in 2025

Gold stock Barrick may have proven itself in the past, but with geopolitical issues on hand, should investors move elsewhere?

Read more »

nugget gold
Metals and Mining Stocks

Gold Stocks in 2025: Why Royalty Stocks May Outshine Miners

When gold prices surge, mining stocks are typically the better picks. But when there is uncertainty about the metal, royalty…

Read more »

People walk into a dark underground mine.
Metals and Mining Stocks

Better Mining Stock: First Quantum vs Teck Resources?

These two mining stocks offer huge returns and income for investors. But one does seem a bit riskier than the…

Read more »