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Straits Times
2 days ago
- Business
- Straits Times
SG60: Building a 100-year family enterprise
Sign up now: Get ST's newsletters delivered to your inbox UBS has been advising multi-generational families for more than 160 years, predating the establishment of modern family office structures. As Singapore celebrates its 60th birthday and passes the reins to the new generation of leaders, so are many of the Singapore businesses that were founded during our early years of nation-building. Family-owned businesses form the backbone of Singapore's and South-east Asia's economies, accounting for more than 60 per cent of the listed companies on the Singapore Exchange and 80 to 90 per cent of the large companies in South-east Asia. Our UBS Asian Family 500 index has shown that family businesses' share price performance has consistently outperformed that of non-family businesses over the last 20 years in Asia, delivering a 212-basis-point higher return on invested capital on average over the long run, reflecting greater focus on long-term value creation. Based on UBS analysis, 70 per cent of Asia-Pacific family-owned businesses are currently in their first and second generations, with the average age of the board members across South-east Asia family enterprises being 62, according to the 2025 EY and University of St Gallen Global Family Business Index. According to McKinsey, an estimated US$5.8 trillion of wealth is expected to change hands by 2030 in Apac. The mindset is also evolving, as observed in our annual UBS Billionaire Ambitions Report over the past decade. Wealthy multi-generational families have become more global with homes, families and businesses spread across different countries. One of the greatest challenges highlighted by the billionaires is fostering in their heirs the values, education and experience required to take over the family business. At the same time, the heirs have their own aspirations and interests outside of the family business. Top stories Swipe. Select. Stay informed. Singapore Luxury items seized in $3b money laundering case handed over to Deloitte for liquidation Singapore MyRepublic customers air concerns over broadband speed after sale to StarHub Singapore Power switchboard failure led to disruption in NEL, Sengkang-Punggol LRT services: SBS Transit Singapore NEL and Sengkang-Punggol LRT resume service after hours-long power fault Business Ninja Van cuts 12% of Singapore workforce after 2 rounds of layoffs in 2024 Singapore Hyflux investigator 'took advantage' of Olivia Lum's inability to recall events: Davinder Singh Singapore Man who stabbed son-in-law to death in Boon Tat Street in 2017 dies of heart attack, says daughter Singapore Man who stalked woman blasted by judge on appeal for asking scandalous questions in court Preparing for a smooth succession of the family business and wealth transition is imminent, as only 12 per cent of global family-owned enterprises make it to the third generation, according to a Gallup report. It is a difficult conversation fraught with sensitivities and emotions, especially in an Asian society, but can be alleviated by an independent trusted facilitator. As the business hub of South-east Asia, Singapore has been a pioneer in innovation practices for the region and can continue to be a leader in family advisory. The number of single-family offices in the Republic has quintupled in the last four years, to more than 2,000 in 2024. Setting up a family office is just one of the pillars of creating lasting familial wealth. Financial institutions play a crucial role as an independent trusted adviser in both optimising business value and preserving families' wealth and legacy. UBS has been advising multi-generational families for more than 160 years, predating the establishment of modern family office structures. Institutionalisation for greater longevity The long-term stability of Singapore to date is a result of its strong institutions, such as the Central Provident Fund. Family businesses can benefit from similar formal governance frameworks that include clear decision-making protocols which balance family influence with professional management. The desire to retain family control among family-owned companies often stands at the core of the decision-making process and impact the willingness to take risk. According to a research by Cucculelli, Le Breton-Miller and Miller (2016), family governance inhibits the development of new product introductions. They find that this trend is more pronounced in successor generations. Institutionalising the family business and wealth is the key to preserving the family legacy. Effective governance structures can ensure family control while implementing merit-based leadership for the family enterprise. An example is Walmart, owned by the world's richest family (the Waltons), which has been managed by a professional chief executive for the last 37 years. Walmart, owned by the world's richest family (the Waltons), has been managed by a professional chief executive for the last 37 years. PHOTO: AFP A focus on an 'entrepreneurial model' across the business has been a consistent theme in our discussions with family CEOs, with many families intentionally inculcating that entrepreneurial spirit among the next generations. The unanimous view among the European and American founding families in our 2023 Family 1000 Report is that the future leader of the business should be chosen based on the best fit for the company, regardless of whether the individual is a family member or not. A framework which allows for the family members to collectively engage one another, and make decisions together, creates a pathway for the new generation to be mentored and groomed. Family CEOs are also aware of investors' scepticism around family-run businesses and seek to implement best practices in corporate governance. This is a key area where Singapore as the leader in corporate governance can help to drive the South-east Asian region forward, especially with the growth in private markets. Our UBS Family Advisory and Wealth Planning team works alongside our clients to help family members put together the most efficient structures to hold assets, and to embed a family governance framework into those structures with the goal of enhancing communication and transparency. The goal is to provide a compass for future decision-making in the family. To unlock their business value, we often explore with our entrepreneur clients, as an independent adviser, their thinking behind expanding or pivoting their core family business, and potential exit options. Navigating the transition from entrepreneur to investor is not as straightforward as it might seem, and implementing a wealth preservation strategy should not be an afterthought. Succession planning should be a long-term, planned endeavour. Governance structures for family businesses and wealth management have improved over time. Family offices are also becoming more professional, with 65 per cent of South-east Asian family offices having a wealth succession plan for the family members versus 36 per cent for those in North-east Asia, according to the 2025 UBS Global Family Office Report. Over half of the Apac family offices report that the next generation will join the board, primarily focusing on investment management activities. Shaping future business leaders In the last 20 years, UBS has trained over 1,700 next-generation wealth holders across more than 75 countries under its comprehensive range of NextGen programmes. For example, the bank hosted the children of ultra-high-net-worth clients in Switzerland for the Global Rising Investor Programme and in Singapore for the UBS Leadership Excellence and Development Series Certification Programme. Our programmes provide affluent families with the tools and resources they need to prepare their successors for broader responsibilities. These ensure that the next generation is well-equipped to manage their family's wealth and legacy as future leaders and stewards of financial wealth. As our Asian clients' businesses, investments and affairs become increasingly globalised, we see a growing demand for diversification and booking centres that can help them preserve and grow their wealth. Our family advisory team in UBS complements the Singapore government's efforts in helping our family office clients with their set-up, education and investments. We help our clients define the strategy for the family office, set up investment processes and governance, and run curated programmes such as Family Office Dialogues, Family Office Labs and Family Office Academy. As Singapore marks 60 years of progress, its family enterprises stand at a pivotal juncture – balancing legacy with transformation. Building a 100-year centurion family enterprise demands more than just succession; it requires institutionalisation, governance, and a global mindset. Only then can we ensure that our legacy thrives for generations to come.
Yahoo
12-05-2025
- Business
- Yahoo
AngloGold Ashanti plc (AU): Among the Best Gold Stocks to Invest In According to Billionaires
We recently compiled a list of the . In this article, we are going to take a look at where AngloGold Ashanti plc (NYSE:AU) stands against the other gold stocks. Within the global metals industry, the gold sector is essential because it offers long-term investors a profitable opportunity as well as a store of value in times of crisis. Gold continues to be one of the most sought-after precious metals in the world due to its historical use as a haven during times of inflation and geopolitical unrest, as well as its growing use in cutting-edge technologies. According to Reuters, gold prices have risen to all-time highs as of March 2025, with spot prices hitting $2,936.38 per ounce and U.S. gold futures topping $2,956.10. Record central bank purchases, growing fears about inflation, and changing global monetary policies have all contributed to the surge, which has made gold a key asset class in an uncertain environment. Demand for gold as a safe haven has increased as a result of increased investor uncertainty brought on by the ongoing trade war between the United States and China, which has resulted in supply chain disruptions and retaliatory tariffs. Gold produced a 43.83% return in 2024, significantly above the 20.89% gain of the whole market. Supported by over-the-counter investments and strategic central bank hoarding, especially in emerging nations like China and India, the total demand for gold hit a record high of 4,974 metric tons. For the third year in a row, central bank purchases topped 1,000 metric tons, according to the World Gold Council. Gold's appeal is strengthened by this accumulation, which is a part of a larger trend of diversification away from the U.S. currency. The premium that investors are willing to pay in the current inflationary environment is reflected in the 9% increase in overall expenditure on gold jewelry, despite an 11% drop in demand for jewelry due to high costs. Strong demand for investments further supports the market's momentum. Demand for actual bars and coins remained stable at 1,186 metric tons, while ETFs saw no significant withdrawals for the first time since 2020. Due to gold's use in semiconductor and artificial intelligence applications, technology use also increased by 7%. As gold moved from Asian markets like Dubai and Hong Kong to the U.S. due to favorable futures premiums and expected import duties, arbitrage opportunities drove an 80% increase in U.S. Comex inventories since late 2024. Additionally, billionaire investors have increased their attention to the metals industry. According to the 2024 UBS Billionaire Ambitions Report, 40% of affluent investors intend to expand their holdings of gold and other precious metals in the upcoming year. Warren Buffett's conglomerate has chosen mining stocks over actual gold, and Jeff Bezos and Bill Gates have invested $537 million in Africa's rare metals sector. This is part of a larger strategy move toward assets linked to technology and sustainable energy. The fact that eight of the top 100 billionaires in Forbes have made their riches in mining and metals highlights the industry's ongoing profitability. To create our list of the 12 Best Gold Stocks to Invest In According to Billionaires, we examined Insider Monkey's exclusive database of billionaire stock holdings. Based on the largest number of billionaire investors, as of Q4 2024, we have chosen the 12 best gold stocks. We have included the total value of billionaire holdings as a secondary criterion to rank the stocks that have the same number of billionaire holdings. We have also considered the number of hedge funds holding a stake in the respective stocks, as per Insider Monkey's database of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A group of miners in hard hats and safety gear descending into a deep coal of Hedge Fund Holders: 31 Multinational gold miner AngloGold Ashanti plc (NYSE:AU) operates in the Americas, Australia, and Africa. Its main purpose is to search for gold, but it also produces byproducts like sulfuric acid and silver. Its African business is anchored on its flagship Geita mine in Tanzania. It is among the best gold stocks to invest in. A significant financial turnaround was achieved by AngloGold Ashanti plc (NYSE:AU) during the year that concluded on December 31, 2024. Adjusted EBITDA over quadrupled to $2.8 billion, and free cash flow nearly tenfolded to $942 million. A loss from the previous year was reversed when basic earnings reached $1.2 billion. Adjusted net debt decreased 55% to $567 million, while operating cash inflow more than doubled to about $2 billion. The company ended the year with $2.6 billion in total liquidity and $1.4 billion in cash. Managed operations produced 2.352 million ounces of gold, a 2% increase over the previous year. However, owing to ongoing inflationary pressure, total cash costs increased 4% to $1,157 per ounce. The margin increase was supported by the average realized gold price, which rose 24% to $2,394 per ounce. With a minimum distribution of $250 million, or $0.50 per share, the dividend payout ratio was increased to 50% of free cash flow. High rains at Tropicana and Iduapriem, as well as poor performance from the Kibali joint venture, caused operational difficulties for the company despite this impressive result. Higher gold prices and tax-related receivables were the main drivers of the increase in working capital outflows. AngloGold Ashanti plc (NYSE:AU) anticipates that between 2.9 and 3.2 million ounces of gold will be produced in 2025, with cash expenses estimated to be between $1,125 and $1,225 per ounce. Cost control is still a top concern, but growth capital will increase as a result of significant expenditures in Sukari and Nevada. The company still prioritizes dividend stability above share buybacks in an effort to win over investors with steady returns. Overall AU ranks 2nd on our list of the best gold stocks to invest in according to billionaires. While we acknowledge the potential of AU as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AU but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
Newmont Corporation (NEM): Among the Best Gold Stocks to Invest In According to Billionaires
We recently compiled a list of the . In this article, we are going to take a look at where Newmont Corporation (NYSE:NEM) stands against the other gold stocks. Within the global metals industry, the gold sector is essential because it offers long-term investors a profitable opportunity as well as a store of value in times of crisis. Gold continues to be one of the most sought-after precious metals in the world due to its historical use as a haven during times of inflation and geopolitical unrest, as well as its growing use in cutting-edge technologies. According to Reuters, gold prices have risen to all-time highs as of March 2025, with spot prices hitting $2,936.38 per ounce and U.S. gold futures topping $2,956.10. Record central bank purchases, growing fears about inflation, and changing global monetary policies have all contributed to the surge, which has made gold a key asset class in an uncertain environment. Demand for gold as a safe haven has increased as a result of increased investor uncertainty brought on by the ongoing trade war between the United States and China, which has resulted in supply chain disruptions and retaliatory tariffs. Gold produced a 43.83% return in 2024, significantly above the 20.89% gain of the whole market. Supported by over-the-counter investments and strategic central bank hoarding, especially in emerging nations like China and India, the total demand for gold hit a record high of 4,974 metric tons. For the third year in a row, central bank purchases topped 1,000 metric tons, according to the World Gold Council. Gold's appeal is strengthened by this accumulation, which is a part of a larger trend of diversification away from the U.S. currency. The premium that investors are willing to pay in the current inflationary environment is reflected in the 9% increase in overall expenditure on gold jewelry, despite an 11% drop in demand for jewelry due to high costs. Strong demand for investments further supports the market's momentum. Demand for actual bars and coins remained stable at 1,186 metric tons, while ETFs saw no significant withdrawals for the first time since 2020. Due to gold's use in semiconductor and artificial intelligence applications, technology use also increased by 7%. As gold moved from Asian markets like Dubai and Hong Kong to the U.S. due to favorable futures premiums and expected import duties, arbitrage opportunities drove an 80% increase in U.S. Comex inventories since late 2024. Additionally, billionaire investors have increased their attention to the metals industry. According to the 2024 UBS Billionaire Ambitions Report, 40% of affluent investors intend to expand their holdings of gold and other precious metals in the upcoming year. Warren Buffett's conglomerate has chosen mining stocks over actual gold, and Jeff Bezos and Bill Gates have invested $537 million in Africa's rare metals sector. This is part of a larger strategy move toward assets linked to technology and sustainable energy. The fact that eight of the top 100 billionaires in Forbes have made their riches in mining and metals highlights the industry's ongoing profitability. To create our list of the 12 Best Gold Stocks to Invest In According to Billionaires, we examined Insider Monkey's exclusive database of billionaire stock holdings. Based on the largest number of billionaire investors, as of Q4 2024, we have chosen the 12 best gold stocks. We have included the total value of billionaire holdings as a secondary criterion to rank the stocks that have the same number of billionaire holdings. We have also considered the number of hedge funds holding a stake in the respective stocks, as per Insider Monkey's database of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A gold mine entry with a conveyor belt transporting minerals from the depths of a of Hedge Fund Holders: 69 Newmont Corporation (NYSE:NEM) is among the best gold stocks according to billionaires, as 13 billionaires hold stakes in the company. With a significant global presence in resource-rich areas, the company manages a diverse portfolio of gold, copper, silver, and other metal assets throughout Australia, West Africa, and North and South America. Newmont Corporation (NYSE:NEM) reported record operational cash flow of $2 billion and free cash flow of $1.2 billion in Q1 2025, which ended on March 31. This was the company's biggest first-quarter cash flow ever. In line with full-year forecasts, 1.5 million ounces of gold and 35,000 tons of copper were produced. Additionally, the company reported a strong adjusted net income of $1.25 per diluted share and $2.6 billion in adjusted EBITDA. With $4.7 billion in cash on hand, Newmont is well-capitalized going into the second half of the year. Additionally, the company successfully sold off six non-core businesses, releasing $3.2 billion in post-tax income. In 2025, almost $2.5 billion of this was realized, with an extra $1.2 billion from deferred consideration and stock holdings. Over the course of the last year, Newmont Corporation (NYSE:NEM) repurchased almost $2 billion worth of shares as part of its $3 billion buyback program and utilized a portion of these profits to pay down $1.5 billion in debt. Operationally, gold production is expected to pick up speed, with the second half of 2025 accounting for about 52% of total output. While the Ahafo North project is still on schedule to produce its first gold by the end of 2025, key assets like Tanami and Boddington are expected to generate increased volumes in H2 2025. Additionally, Newmont Corporation (NYSE:NEM) is giving Red Chris development first priority and expects Lihir to continue to grow starting in 2028. In the future, Newmont Corporation (NYSE:NEM) intends to exploit high gold prices and continuous central bank demand to stabilize its 11 controlled operations and carry out capital return schemes. Newmont is still in a strong position in the precious metals market, thanks to the support of numerous billionaires and a well-defined production and balance sheet expansion strategy. Overall NEM ranks 1st on our list of the best gold stocks to invest in according to billionaires. While we acknowledge the potential of NEM as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NEM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
Kinross Gold Corporation (KGC): Among the Best Gold Stocks to Invest In According to Billionaires
We recently compiled a list of the . In this article, we are going to take a look at where Kinross Gold Corporation (NYSE:KGC) stands against the other gold stocks. Within the global metals industry, the gold sector is essential because it offers long-term investors a profitable opportunity as well as a store of value in times of crisis. Gold continues to be one of the most sought-after precious metals in the world due to its historical use as a haven during times of inflation and geopolitical unrest, as well as its growing use in cutting-edge technologies. According to Reuters, gold prices have risen to all-time highs as of March 2025, with spot prices hitting $2,936.38 per ounce and U.S. gold futures topping $2,956.10. Record central bank purchases, growing fears about inflation, and changing global monetary policies have all contributed to the surge, which has made gold a key asset class in an uncertain environment. Demand for gold as a safe haven has increased as a result of increased investor uncertainty brought on by the ongoing trade war between the United States and China, which has resulted in supply chain disruptions and retaliatory tariffs. Gold produced a 43.83% return in 2024, significantly above the 20.89% gain of the whole market. Supported by over-the-counter investments and strategic central bank hoarding, especially in emerging nations like China and India, the total demand for gold hit a record high of 4,974 metric tons. For the third year in a row, central bank purchases topped 1,000 metric tons, according to the World Gold Council. Gold's appeal is strengthened by this accumulation, which is a part of a larger trend of diversification away from the U.S. currency. The premium that investors are willing to pay in the current inflationary environment is reflected in the 9% increase in overall expenditure on gold jewelry, despite an 11% drop in demand for jewelry due to high costs. Strong demand for investments further supports the market's momentum. Demand for actual bars and coins remained stable at 1,186 metric tons, while ETFs saw no significant withdrawals for the first time since 2020. Due to gold's use in semiconductor and artificial intelligence applications, technology use also increased by 7%. As gold moved from Asian markets like Dubai and Hong Kong to the U.S. due to favorable futures premiums and expected import duties, arbitrage opportunities drove an 80% increase in U.S. Comex inventories since late 2024. Additionally, billionaire investors have increased their attention to the metals industry. According to the 2024 UBS Billionaire Ambitions Report, 40% of affluent investors intend to expand their holdings of gold and other precious metals in the upcoming year. Warren Buffett's conglomerate has chosen mining stocks over actual gold, and Jeff Bezos and Bill Gates have invested $537 million in Africa's rare metals sector. This is part of a larger strategy move toward assets linked to technology and sustainable energy. The fact that eight of the top 100 billionaires in Forbes have made their riches in mining and metals highlights the industry's ongoing profitability. To create our list of the 12 Best Gold Stocks to Invest In According to Billionaires, we examined Insider Monkey's exclusive database of billionaire stock holdings. Based on the largest number of billionaire investors, as of Q4 2024, we have chosen the 12 best gold stocks. We have included the total value of billionaire holdings as a secondary criterion to rank the stocks that have the same number of billionaire holdings. We have also considered the number of hedge funds holding a stake in the respective stocks, as per Insider Monkey's database of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Aerial shot of a mine entrance, the bedrock of the company's gold and silver of Hedge Fund Holders: 42 The acquisition, exploration, and development of gold properties in the United States, Brazil, Chile, Canada, and Mauritania define Kinross Gold Corporation's (NYSE:KGC) operations. In addition, the company manufactures silver and works on gold mining property reclamation. The $598.4 million that billionaires own in Kinross Gold shows how confident investors are in the company's sound foundation and future expansion, helping it rank among the best gold stocks. According to its yearly projection, Kinross Gold Corporation (NYSE:KGC) produced 512,000 gold equivalent ounces in Q1 2025 at a cost of sales of $10.38 per ounce. Strong free cash flow of $371 million and a decrease in net debt to $540 million were the results of this success. The company was able to achieve strong margins across its portfolio because of the favorable gold pricing environment. Kinross is still in a great financial position with a healthy cash position and $2.3 billion in total liquidity. The business plans to produce 2 million ounces over the course of the year, with an all-in sustaining cost of $15 per ounce and a cost of sales projection of $11.20 per ounce. Adjusted operating cash flow of $676 million, attributable free cash flow of $371 million, and a cash position of $695 million are the financial highlights for the first quarter of 2025. A $500 million share repurchase program is also planned by Kinross Gold Corporation (NYSE:KGC), demonstrating its confidence in its financial stability. Risks include operational disruptions, shifting gold prices, and exploration difficulties, especially in new project locations, even in a good market scenario. With a particular focus on brownfield projects, Kinross Gold Corporation (NYSE:KGC) is nevertheless committed to exploration at important locations including Tasiast and Paracatu. While acknowledging Kinross's emphasis on producing net cash by the end of the year, CEO Paul Rollinson voiced confidence in the company's production profile and cash flow generation. Overall KGC ranks 3rd on our list of the best gold stocks to invest in according to billionaires. While we acknowledge the potential of KGC as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than KGC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
Kinross Gold Corporation (KGC): Among the Best Gold Stocks to Invest In According to Billionaires
We recently compiled a list of the . In this article, we are going to take a look at where Kinross Gold Corporation (NYSE:KGC) stands against the other gold stocks. Within the global metals industry, the gold sector is essential because it offers long-term investors a profitable opportunity as well as a store of value in times of crisis. Gold continues to be one of the most sought-after precious metals in the world due to its historical use as a haven during times of inflation and geopolitical unrest, as well as its growing use in cutting-edge technologies. According to Reuters, gold prices have risen to all-time highs as of March 2025, with spot prices hitting $2,936.38 per ounce and U.S. gold futures topping $2,956.10. Record central bank purchases, growing fears about inflation, and changing global monetary policies have all contributed to the surge, which has made gold a key asset class in an uncertain environment. Demand for gold as a safe haven has increased as a result of increased investor uncertainty brought on by the ongoing trade war between the United States and China, which has resulted in supply chain disruptions and retaliatory tariffs. Gold produced a 43.83% return in 2024, significantly above the 20.89% gain of the whole market. Supported by over-the-counter investments and strategic central bank hoarding, especially in emerging nations like China and India, the total demand for gold hit a record high of 4,974 metric tons. For the third year in a row, central bank purchases topped 1,000 metric tons, according to the World Gold Council. Gold's appeal is strengthened by this accumulation, which is a part of a larger trend of diversification away from the U.S. currency. The premium that investors are willing to pay in the current inflationary environment is reflected in the 9% increase in overall expenditure on gold jewelry, despite an 11% drop in demand for jewelry due to high costs. Strong demand for investments further supports the market's momentum. Demand for actual bars and coins remained stable at 1,186 metric tons, while ETFs saw no significant withdrawals for the first time since 2020. Due to gold's use in semiconductor and artificial intelligence applications, technology use also increased by 7%. As gold moved from Asian markets like Dubai and Hong Kong to the U.S. due to favorable futures premiums and expected import duties, arbitrage opportunities drove an 80% increase in U.S. Comex inventories since late 2024. Additionally, billionaire investors have increased their attention to the metals industry. According to the 2024 UBS Billionaire Ambitions Report, 40% of affluent investors intend to expand their holdings of gold and other precious metals in the upcoming year. Warren Buffett's conglomerate has chosen mining stocks over actual gold, and Jeff Bezos and Bill Gates have invested $537 million in Africa's rare metals sector. This is part of a larger strategy move toward assets linked to technology and sustainable energy. The fact that eight of the top 100 billionaires in Forbes have made their riches in mining and metals highlights the industry's ongoing profitability. To create our list of the 12 Best Gold Stocks to Invest In According to Billionaires, we examined Insider Monkey's exclusive database of billionaire stock holdings. Based on the largest number of billionaire investors, as of Q4 2024, we have chosen the 12 best gold stocks. We have included the total value of billionaire holdings as a secondary criterion to rank the stocks that have the same number of billionaire holdings. We have also considered the number of hedge funds holding a stake in the respective stocks, as per Insider Monkey's database of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Aerial shot of a mine entrance, the bedrock of the company's gold and silver of Hedge Fund Holders: 42 The acquisition, exploration, and development of gold properties in the United States, Brazil, Chile, Canada, and Mauritania define Kinross Gold Corporation's (NYSE:KGC) operations. In addition, the company manufactures silver and works on gold mining property reclamation. The $598.4 million that billionaires own in Kinross Gold shows how confident investors are in the company's sound foundation and future expansion, helping it rank among the best gold stocks. According to its yearly projection, Kinross Gold Corporation (NYSE:KGC) produced 512,000 gold equivalent ounces in Q1 2025 at a cost of sales of $10.38 per ounce. Strong free cash flow of $371 million and a decrease in net debt to $540 million were the results of this success. The company was able to achieve strong margins across its portfolio because of the favorable gold pricing environment. Kinross is still in a great financial position with a healthy cash position and $2.3 billion in total liquidity. The business plans to produce 2 million ounces over the course of the year, with an all-in sustaining cost of $15 per ounce and a cost of sales projection of $11.20 per ounce. Adjusted operating cash flow of $676 million, attributable free cash flow of $371 million, and a cash position of $695 million are the financial highlights for the first quarter of 2025. A $500 million share repurchase program is also planned by Kinross Gold Corporation (NYSE:KGC), demonstrating its confidence in its financial stability. Risks include operational disruptions, shifting gold prices, and exploration difficulties, especially in new project locations, even in a good market scenario. With a particular focus on brownfield projects, Kinross Gold Corporation (NYSE:KGC) is nevertheless committed to exploration at important locations including Tasiast and Paracatu. While acknowledging Kinross's emphasis on producing net cash by the end of the year, CEO Paul Rollinson voiced confidence in the company's production profile and cash flow generation. Overall KGC ranks 3rd on our list of the best gold stocks to invest in according to billionaires. While we acknowledge the potential of KGC as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than KGC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
