Gold Stocks as a Strategic Hedge in a 'Sell America' Trade

In an era marked by geopolitical volatility, monetary uncertainty, and the erosion of the U.S. dollar's dominance, gold has reemerged as a cornerstone of portfolio resilience. As of early 2026, gold prices have surged past $4,600/oz, driven by central bank demand, de-dollarization trends, and investor flight to safety amid concerns over the Federal Reserve's independence and global debt burdens. This environment has created a compelling case for gold equities-particularly undervalued miners-as a strategic hedge against systemic risks. Below, we analyze four standout names in the sector, each offering unique advantages in a "Sell America" trade.

Geopolitical and Monetary Drivers of Gold's Rally

Gold's structural strength is underpinned by three key factors: central bank buying, monetary fragmentation, and geopolitical tensions. Central banks have purchased over 1,000 tonnes of gold annually since 2022, diversifying away from dollar-centric reserves. This trend is accelerating as nations like China, India, and Turkey seek to insulate their economies from Western financial dominance. Meanwhile, U.S. policy uncertainty-ranging from potential trade wars to inflationary pressures-has reinforced gold's role as a safe-haven asset. Analysts at J.P. Morgan predict gold prices could reach $5,000/oz by 2026 and $6,000/oz by 2030, driven by these structural dynamics.

Gold Equities: Undervalued Relative to the Metal

Despite gold's meteoric rise, many miners remain undervalued relative to the price of the metal itself. For instance, gold equities trade at an average price-to-gold ratio of 0.25–0.35, meaning investors can gain leveraged exposure to gold's price action while benefiting from operational and financial improvements at mining companies. This dislocation presents a unique opportunity, as miners with strong balance sheets and low all-in sustaining costs (AISC) are poised to outperform.

1. AngloGold Ashanti (AU): High-ROIC Growth and Production Resilience

AngloGold Ashanti has emerged as a top performer in 2025, with a 107% one-year return and a 20.4% ROIC. The company's production guidance of 2.9–3.2 million ounces in 2025, supported by its Sukari and Obuasi mines, underscores its operational strength. At a forward P/E of 12.79X-below the industry average of 13.11X-AngloGold is trading at a discount to its intrinsic value of $146.31/share. Analysts estimate it is undervalued by 36.9%, making it a compelling buy for investors seeking exposure to a diversified, low-cost producer.

2. Gold Fields (GFI): Cost Efficiency and Jurisdictional Safety

Gold Fields has demonstrated robust cost discipline, reducing all-in sustaining costs to $1,370/oz in Q3 2025 while increasing gold-equivalent production by 22% year-over-year. The company's Salares Norte mine in Chile and its focus on Tier-1 assets in politically stable jurisdictions position it as a defensive play. With a forward P/E of 14.16X and a projected ROIC of 42.7%, Gold Fields combines operational efficiency with strong capital returns.

3. Newmont Corporation (NEM): Scale and Structural Resilience

As the world's largest gold producer, Newmont benefits from scale and geographic diversification. Its 2025 production of 5.9 million ounces, coupled with a 13.66% ROIC, highlights its competitive edge. While its P/E ratio of 17.56X is higher than peers, analysts argue it is justified) by Newmont's $124.31/share intrinsic value and its ability to capitalize on gold prices exceeding $3,000/oz. The company's $3.3 billion in cash reserves and $3.3 billion in share repurchases further strengthen its balance sheet.

4. Agnico Eagle Mines (AEM): High-Growth, Low-Risk Jurisdictions

Agnico Eagle has delivered 867,000 ounces of production in Q3 2025, with AISC of $1,370/oz and a 155.3% one-year return. Its focus on Canada, Mexico, and Finland-regions with stable regulatory environments-reduces geopolitical risk. At a forward P/E of 14.1X) and a projected ROIC of 22.9%, Agnico Eagle offers a blend of growth and safety, making it ideal for a "Sell America" trade.