Gold has long been a symbol of wealth, security, and stability. For centuries, it has served as a safe haven in times of economic uncertainty, geopolitical tensions, and financial instability. Today, investing in gold shares—stocks of companies involved in the mining and production of gold—offers investors a way to gain exposure to the price movements of gold without having to buy the physical metal. With gold prices reaching new highs and the outlook for the metal remaining strong, now might be the perfect time to consider adding gold shares to your investment portfolio.

The Case for Gold in 2024

Gold is currently experiencing a remarkable bull run. As of recent reports, the price of gold has soared to over US$2,500 per ounce, setting new records. Several factors contribute to this surge, making gold shares an attractive option for investors looking for stability and growth potential.

• Economic Uncertainty

The global economy is facing significant challenges, including inflationary pressures, slowing growth, and potential recessions in major economies. In such environments, gold is often seen as a safe-haven asset, providing a hedge against inflation and currency depreciation. As economic uncertainty persists, the demand for gold—and, by extension, gold shares—is likely to remain strong.

• Geopolitical Tensions  

Geopolitical risks, including conflicts and tensions between major powers, can create instability in financial markets. Gold tends to perform well during periods of heightened geopolitical risk, as investors seek out assets that can preserve value. With ongoing global tensions, the demand for gold is expected to continue rising.

• Central Bank Purchases

Central banks around the world have been increasing their gold reserves, further driving up demand. According to Bloomberg, central banks purchased 483.3 ton of gold in the first half of 2024, a significant amount that highlights the growing interest in the metal. This trend is expected to continue as central banks seek to diversify their reserves and reduce their reliance on the U.S. dollar.

• Interest Rate Environment

Gold does not pay interest or dividends, so it generally performs better in environments where interest rates are low or falling. With expectations that the U.S. Fed will cut interest rates in the coming quarters, the opportunity cost of holding gold decreases, making it more attractive compared to other yield-bearing assets. Analysts predict that the gold price could rise even further, possibly reaching US$2,700 per ounce in the near future.

Given these factors, investing in gold shares offers a way to capitalise on the rising price of gold while also benefiting from the potential growth of gold mining companies. Let's take a closer look at three ASX-listed gold shares that could be worth considering for your portfolio.

1. Newmont Corporation (ASX: NEM)

Newmont Corporation is one of the largest gold mining companies in the world, with operations spanning several continents. It recently acquired Newcrest Mining, further solidifying its position as a leader in the gold mining industry. Newmont's shares have performed well in 2024, with a 27.6% increase over the past 12 months.

Newmont's global presence and diversified portfolio of gold mines provide it with a strong foundation to capitalise on rising gold prices. The company's commitment to sustainable mining practices and its focus on maximising shareholder value make it a reliable choice for investors seeking exposure to gold.

With gold prices expected to continue rising, Newmont's earnings are likely to benefit significantly. The company's large-scale operations and efficient production processes allow it to maintain low costs, making it well-positioned to generate substantial profits as gold prices climb.

2. Northern Star Resources Ltd (ASX: NST)

Northern Star Resources is another major player in the Australian gold mining industry. The company's shares have surged by 42.6% over the past year, reflecting strong investor confidence in its operations and growth prospects.

Northern Star operates some of Australia's most productive gold mines, including the Kalgoorlie Super Pit, one of the world's largest open-pit gold mines. The company's focus on operational excellence and cost management has enabled it to maintain high profit margins, even during periods of volatile gold prices.

Looking ahead, Northern Star is well-positioned to benefit from the anticipated rise in gold prices. The company's ongoing investments in exploration and development projects are expected to boost its gold production capacity, providing additional upside potential for its shares. With a strong balance sheet and a track record of delivering consistent returns to shareholders, Northern Star is a solid choice for investors looking to add gold shares to their portfolio.

3. Alkane Resources Limited (ASX: ALK)

Alkane Resources is a smaller gold mining company with big ambitions. The company operates the Tomingley Gold Operations in New South Wales, which has been in production since 2014 and is expected to continue operating well beyond 2030. Alkane also controls several promising gold and copper tenements, with potential for significant resource expansion.

Despite its relatively small size, Alkane has caught the attention of analysts who believe the company's shares could more than double in value over the next 12 months. Bell Potter, a leading brokerage firm, recently reiterated its buy rating on Alkane's shares, citing the company's strong production outlook and its undervalued share price.

Alkane's expansion plans, including the development of new mining projects, are expected to drive future growth. With gold prices on the rise, Alkane's shares offer a compelling investment opportunity for those willing to take on a bit more risk in exchange for the potential for substantial returns.

In an environment of economic uncertainty, geopolitical tensions, and low interest rates, gold shares offer a unique combination of stability and growth potential. As gold prices continue to rise, companies like Newmont Corporation, Northern Star Resources, and Alkane Resources are well-positioned to benefit, making them attractive options for investors seeking to diversify their portfolios with gold shares.

By adding gold shares to your portfolio, you can gain exposure to the potential upside of gold prices while also benefiting from the operational success of leading gold mining companies. Whether you're looking for a stable investment or seeking out higher returns, gold shares could be a valuable addition to your investment strategy.