Top Gold Mining Stocks to Buy: Weighing ETFs Against Individual Holdings

Gold prices have reached new record levels, prompting investors to evaluate entry strategies into this asset class. The gold mining sector presents multiple pathways for exposure, but choosing between gold mining stocks to buy—whether through ETFs or individual positions—requires understanding the tradeoffs between diversification, cost, and concentration risk.

Key Investment Options: Finding Your Gold Mining Exposure

Investors seeking gold mining stocks to buy have traditionally focused on two primary approaches. The first involves purchasing a basket of miners through an exchange-traded fund, which provides instant diversification across the sector. The second is building a concentrated portfolio of select individual mining companies with strong fundamentals.

Recent earnings reports from major gold miners have revealed robust second-quarter performance, marked by record free cash flow and, in several cases, record earnings. This backdrop has energized sector valuations and attracted renewed institutional interest in precious metals exposure.

Gold Mining ETFs: Comparing the Leading Vehicles

VanEck Gold Miner ETF (GDX) remains the long-established flagship vehicle in this space. The ETF’s two largest holdings—Newmont Corp. and Agnico Eagle Mines Ltd.—collectively represent approximately 26.1% of the fund’s total portfolio. Year-to-date performance demonstrated substantial gains of 70.9% as gold miners surged toward new highs. However, the 0.51% expense ratio ranks among the higher end for gold mining ETFs, a consideration for cost-conscious investors.

For those prioritizing lower fees, iShares Gold Miner ETF (RING) offers an attractive alternative with a notably reduced expense ratio. Its top two holdings mirror GDX—Newmont and Agnico Eagle—but represent a higher concentration at 31.1% of the portfolio. This greater weighting raises a strategic question: do you prefer broader diversification or a tighter focus on the sector’s largest players? RING also trades with lighter daily volume than GDX, which may matter for larger position sizes.

Top Gold Mining Stocks to Buy: Individual Stock Opportunities

For investors comfortable with single-name selection, several major gold miners carry Strong Buy ratings from leading research analysts.

Newmont Corp. (NEM) operates as the world’s largest gold miner by market capitalization at $75.3 billion. Positioned as a Top Buy ranking, the company projects 51.4% earnings growth and trades at an attractive forward price-to-earnings ratio of 13—a clear valuation discount. Second-quarter free cash generation reached $1.7 billion, enabling the company to expand its share buyback authorization to $3 billion. The annual dividend of $1.00 per share delivers a 1.5% yield, providing income alongside potential capital appreciation.

Agnico Eagle Mines Ltd. (AEM), a major Canadian mining operation valued at $67.2 billion, has similarly demonstrated strong momentum this cycle. Year-to-date performance reflected 68.8% appreciation, with shares trading near five-year peaks. The forward P/E of 19.5 remains reasonable for a high-quality operator, while the company’s record quarterly free cash flow of $1.305 billion supports both debt reduction and dividend payments yielding 1.2%. This holding also earns a Top Buy rating.

Harmony Gold Mining Co. Ltd. (HMY), based in South Africa, offers a smaller-cap alternative with a market capitalization of $9.8 billion. Though not yet reporting latest earnings at the time of sector reviews, the company had confirmed 2025 production and cost guidance. Harmony trades at exceptional valuations with a forward P/E of just 5.4—well into deep-value territory. Projected earnings growth of 33.7% for the fiscal year, combined with a 1.2% dividend yield, creates a compelling risk-reward profile for value-oriented investors seeking gold mining stocks to buy.

Making Your Selection: ETF or Individual Names?

The choice between gold mining ETFs and individual gold mining stocks to buy ultimately depends on your investment profile. ETF investors gain immediate diversification and lower operational decision-making burden, making them suitable for those preferring a passive approach. Individual stock selection appeals to active investors comfortable with concentrated positions in best-of-breed operators.

Consider your risk tolerance, investment time horizon, and conviction in specific management teams when weighing these options. Gold mining stocks to buy in today’s market offer both near-term momentum and fundamental value drivers—the right vehicle depends on your specific investment objectives.