A recent analysis of the 10 cheapest gold stocks to invest in right now highlights Kinross Gold Corporation (NYSE: KGC) as a noteworthy contender. This report evaluates where KGC stands among other affordable gold stocks amid rising global demand for the precious metal.
Global Gold Demand Hits Record High in 2024
The World Gold Council reported that global gold demand reached an all-time high in 2024, driven by surging investment interest and aggressive central bank purchases. Total gold transactions, including over-the-counter (OTC) investments, climbed to 4,974 tons, up from 4,899 tons in 2023.
Central banks, in particular, demonstrated an unrelenting appetite for gold, surpassing 1,000 tons of purchases for the third consecutive year. The National Bank of Poland emerged as the largest net buyer, adding 90 tons to its reserves. Meanwhile, the Central Bank of Turkey followed closely, purchasing 75 tons, and the Reserve Bank of India maintained steady acquisitions throughout the year, with the exception of December.
Gold investment demand also surged across ASEAN markets, with Malaysia, Indonesia, Singapore, and Thailand all posting double-digit year-over-year increases. In India, demand received a boost after the government cut gold import duties from 15% to 6%.
Growing Investor Interest in Gold
Annual gold investments rose 25% in 2024, reaching a four-year high of 1,180 tons, largely driven by gold-backed exchange-traded funds (ETFs). According to CNBC, demand for gold coins and bars remained strong, particularly in India and China, where investors sought refuge from stock market volatility, economic uncertainty, and record-low government bond yields.
Beyond regional markets, OTC gold investments remained stable in 2024, reflecting a continued interest from high-net-worth individuals seeking to hedge against economic and geopolitical risks.
Challenges in the Gold Jewelry Market & 2025 Outlook
Unlike the overall gold market, the jewelry sector saw a downturn in 2024, with demand dropping 11% year-over-year due to rising gold prices. The World Gold Council expects this trend to persist in 2025, as economic pressures and higher prices are likely to keep consumer spending on gold jewelry subdued.
However, the report also suggests that investment demand for gold will remain strong, supported by lower anticipated interest rates, which reduce the opportunity cost of holding gold.
Kinross Gold Corporation: A Strong Performer Among Cheap Gold Stocks
Based in Canada, Kinross Gold Corporation (NYSE: KGC) is a global senior gold mining company with operations spanning the U.S., Brazil, Mauritania, Chile, and Canada. Its key projects include Fort Knox, Round Mountain, Bald Mountain, Paracatu, La Coipa, Tasiast, and Great Bear.
In Q4 2024, Kinross repaid $800 million in debt and generated a record free cash flow of $1.3 billion. The company produced 2.13 million gold equivalent ounces during the year and achieved a net profit of $948.8 million.
Notably, Kinross saw 37% growth in its operating margins, outpacing the 23% rise in realized gold prices, allowing the company to maximize profitability. In Q4 alone, Kinross produced over 500,000 ounces, successfully delivering more than 2.1 million ounces for the full year, meeting its 2024 market commitments.
Is KGC a Strong Buy?
Kinross Gold Corporation ranks 3rd on our list of cheap gold stocks to invest in right now. While the company has demonstrated strong financial performance and operational efficiency, some analysts suggest that AI stocks may offer higher short-term returns.
For investors seeking an alternative, we recommend exploring our report on the cheapest AI stock currently trading at less than five times its earnings, which may present an even stronger investment opportunity.
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