We have recently released a list of Top 10 Gold Stocks with Dividends. This article will explore Barrick Gold Corporation (NYSE:GOLD) and its position compared to other leading gold dividend stocks.
In 2024, gold has shown exceptional performance despite growing global restrictions. The price of gold surpassed $2,900 per ounce, fueled by substantial central bank purchases, increasing demand from investors, and its status as a safeguard against economic volatility. Retail and institutional investors have become more interested in gold in light of inflationary concerns and escalating geopolitical tensions.
According to the World Gold Council, total gold demand, including over-the-counter (OTC) investments, reached a record level of 4,974 metric tons in 2024. This surge is primarily credited to central banks, which contributed over 1,000 metric tons for the third straight year, particularly in emerging markets like China and India, where there is a drive to diversify away from the U.S. dollar. Gold achieved a remarkable return of 43.83% in the previous year, which outperformed the broader market’s 20.89% gain during the same period.
The gold investment market is experiencing significant transformations, as gold exchange-traded funds (ETFs) did not report any major outflows for the first time since 2020, contrasting previous years of large liquidations. Furthermore, physical demand for gold remains robust, with bar and coin purchases steady at 1,186 metric tons. Gold usage in technology has also surged by 7%, driven by advancements in industries such as artificial intelligence and semiconductors, which rely on gold for high-performance electronics.
Despite the overall strong performance, gold jewelry demand saw an 11% decline in 2024 due to high prices, making it less affordable for consumers. However, total spending on gold jewelry increased by 9%, indicating the overall effect of rising gold prices. This discrepancy between lower jewelry demand and high investment demand underscores the shifting role of gold in the global economy.
Market analysts and leading financial institutions have a positive outlook for gold in 2025. Goldman Sachs has recently adjusted its gold price forecast to $3,100 per ounce, attributing this to ongoing central bank accumulation and rising investor interest. Similarly, analysts from J.P. Morgan have predicted that gold prices may reach $3,000 per ounce if macroeconomic instability persists.
In conclusion, the evolving global monetary policies are also impacting the gold market. According to J.P. Morgan, reductions in interest rates by major economies such as the U.S. and Europe could increase the demand for gold, as the opportunity cost of holding gold diminishes when traditional investments yield lower returns. Consequently, investing in gold stocks has become an appealing opportunity for investors seeking to capitalize on gold’s performance while also earning substantial dividends. Barrick Gold Corporation (NYSE:GOLD) ranks third on our list of top dividend gold stocks, although there are AI stocks that may offer higher returns in a shorter period. If you’re interested in promising AI stocks, be sure to check out our report on the cheapest AI stock.
