We recently published a list of 10 Best Canadian Gold Stocks to Buy Now. In this article, we are going to take a look at where Pan American Silver Corp. (NYSE:PAAS) stands against other best Canadian gold stocks to buy now.
Gold remains a trusted store of value during economic uncertainty. Due to global inflation, geopolitical tensions, and central bank demand, the appeal of gold is surging to new highs. According to Fortune Business Insights, the global gold market, worth $291.68 billion in 2024, is projected to reach $457.91 billion by 2032, growing at a CAGR of 5.8%. Reuters reported that this price surge has attracted investors, with spot gold hitting a record $2,936.38 per ounce and U.S. futures reaching $2,956.10.
Investor interest remains high as gold-backed ETFs saw a 26% jump in 2024, their best performance since 2010. Additionally, central bank demand is expected to exceed the 500-ton long-term average in 2025, further supporting prices, though any purchasing slowdown could pose risks.
Macroeconomic factors also affect gold’s future as the U.S. recently imposed a 25% tariff on Mexican and Canadian imports, along with additional duties on Chinese goods, sparking inflation worries. While automakers received temporary exemptions, market uncertainty persists. According to a Reuters survey, investors are watching the upcoming U.S. non-farm payrolls report, which could affect Federal Reserve policy and gold prices.
On the supply side, global gold production held steady at about 3,300 metric tons in 2024, with China, Russia, Australia, and Canada as the top producers. Meanwhile, the recycled gold supply rose 11% to 1,370 tons, reflecting increased market liquidity. With China and India accounting for over 60% of annual gold consumption, the countries remain crucial market influencers in 2025.
However, global gold trade patterns are shifting from their traditional eastward flow to meet China’s and India’s demands. Gold shipments are now being redirected to the U.S. as Asian retail demand weakens. Reuters reported that bullion banks are capitalizing on Comex futures rather than premium spot prices by redirecting gold supplies to the U.S. Furthermore, U.S. gold inventories have jumped nearly 80% since late 2024, with increased imports from London, Switzerland, and Asian markets, cementing America’s key role in the global market.
Additionally, technological innovation is reshaping the gold industry. Advances in bio-leaching, cyanide-free processing, and nanotechnology are boosting extraction efficiency and sustainability, promising lower environmental impact and positioning the sector for long-term growth.
Entering 2025, the U.S. gold market continues to be shaped by inflation, geopolitical uncertainties, changing trade policies, and technological advances. Amid these shifting market dynamics, gold remains a vital asset for those seeking security and growth potential.
Methodology
To compile our list of the 10 Best Canadian Gold Stocks according to hedge funds, we used the Finviz stock screener to find the 30 largest Canadian companies that are involved in the production, extraction, processing, or sale of gold. We then used Insider Monkey’s Hedge Fund database to rank those stocks according to the number of hedge fund holders as of Q4 2024. Finally, we picked ten stocks with the highest number of hedge fund holders. The list is sorted in ascending order of hedge fund sentiment.
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).
Is Pan American Silver Corp. (PAAS) the Best Canadian Gold Stock to Buy Now?
A large drill in operation deep in a mine, surrounded by the machinery of a modern extraction site.
Pan American Silver Corp. (NYSE:PAAS) is a major Canadian mining company focused on silver and gold extraction across several countries, including Canada, Mexico, Peru, Bolivia, Argentina, Chile, and Brazil. The company also explores base metals, cementing its position among the best Canadian stocks.
Q4 2024 brought significant financial gains for Pan American Silver Corp. (NYSE:PAAS), fueled by higher metal prices and increased output. The quarterly revenue reached $815.1 million, making the yearly total $2.8 billion. Silver production totaled 21.1 million ounces, and gold hit a record 892,000 ounces, boosted by the integration of Yamana mines. These results generated an annual operating cash flow of $724.1 million and a free cash flow of $445.1 million, strengthening the company’s financial position.
Moreover, Pan American Silver Corp. (NYSE:PAAS) is exploring synergies with Discovery Silver and assessing satellite deposits like Whitney and Gold River for development. El Peñón mine maintains steady production with an improved cost midpoint of $12.35 per ounce. At La Colorada, ventilation upgrades have boosted daily throughput to 2,000 tons, lowering operational costs.
For 2025, Pan American Silver Corp. (NYSE:PAAS) predicts silver production between 20 million and 21 million ounces and gold output between 735,000 and 800,000 ounces. Production will likely be concentrated in the second half of the year, reducing per-unit costs as efficiency improves. Despite regulatory hurdles at the Escobal project, discussions continue with Guatemala’s government. With robust cash flow, operational improvements, and strategic assets, Pan American Silver remains well-positioned to benefit from rising metal prices and sustained long-term growth.
Overall, PAAS ranks 4th on our list of best Canadian gold stocks to buy now. While we acknowledge the potential of PAAS, 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. If you are looking for an AI stock that is more promising than PAAS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
