Investment Opportunities Arise as Gold Drops Below $1,800: Explore Three Strategies Today
Gold Mining Giant Newmont Remains a Strong Option for Investors Amid Market Volatility
In the ever-changing world of investments, finding a reliable and profitable option can be challenging. However, for those with a sizable existing gold position or a higher risk tolerance, investing in gold mining stocks, such as Newmont, could be an attractive choice.
Newmont, a global leader in the gold mining industry, offers a quarterly dividend of $0.55 per share, representing a dividend yield of around 4.8%. The dividend yield can vary based on industry conditions, but it has been on the rise for the last five years. Notably, in 2019, Newmont paid a one-time special dividend of $0.88 per share.
Gold mining stocks heavily depend on a strong gold price. Fortunately, gold has shown strong resilience and steady performance after its retreat in July 2022. As of August 2025, spot prices have consolidated in the mid-$3,300s following an all-time high near $3,500 in April 2025. This performance has been driven by factors such as inflation concerns, geopolitical risks, central bank demand, and expectations of lower interest rates.
While the equity markets have generally been advancing, especially in growth sectors driven by AI and healthcare, gold has remained an important hedge amid ongoing inflation and geopolitical tensions. For instance, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite have gained approximately 1.74%, 0.94%, and 0.81% respectively since mid-2023.
Newmont's stock, currently down 47% from its 52-week high, after missing earnings expectations, could be a good option for investors looking for a long-term play in the gold mining industry. The company has a diverse portfolio, with a presence in Africa, Australia, North America, and South America, providing an unrivaled industry advantage.
For those preferring an ETF route, the SPDR Gold Shares ETF has net assets of $61.34 billion, while the iShares Gold Trust has a lower expense ratio (0.25%) compared to SPDR Gold Shares (0.4%). The VanEck Gold Miners ETF, with 54 total holdings and a market cap of $10.93 billion, is another option. Newmont is the largest holding in the VanEck Gold Miners ETF, with Barrick Gold being the second largest.
However, it's important to note that gold mining stocks, including Newmont, are currently around 52-week lows and could be worth buying now. The VanEck Gold Miners ETF is down 20% year to date and nearly 40% from its all-time high.
In conclusion, gold and U.S. equities have both performed well since mid-2023, with gold serving an important diversification and inflation-hedging role, while equities—particularly in technology and growth areas—have capitalized on positive investor sentiment and Fed policy expectations. The markets remain closely attuned to Fed moves, inflation data, geopolitical tensions, and trade policy, which continue to create an environment where diversification including both gold and select equities is prudent.
Investing in Newmont, a global leader in gold mining, offers a stable dividend yield that has been on the rise for the last five years, making it an attractive choice for those seeking reliable income in the finance sector. Given its strong performance and resistance to market volatility, Newmont's stock presents a promising long-term investment opportunity, especially as gold prices remain resilient amidst ongoing inflation and geopolitical tensions.
