3 TSX Gold Stocks to Buy to Protect Against a Market Crash

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The Canadian stock market has certainly been choppy this year because of all the uncertainty in the world. Unsurprisingly, gold is back in the limelight. If you’re looking for a safety net or some cushion against a potential market crash, you might want hop on the bandwagon and consider investing in gold stocks.

Wesdome Gold Mines

Wesdome Gold Mines (TSX:WDO) continues to prove its worth as a winning investment: The $1.99 billion gold producer has made the TSX30 list in all three years of the flagship program (2019 to 2021) that showcases Canada’s top 30 growth stocks.

Current Wesdome investors are up 22% year-to-date and 49% over the past 12 months. Over three years, the shares have risen more than 240%.

As for the future? Analysts say the stock could reach as high as $20 in the next 12 months. It currently trades for about $14.

With two high-producing underground gold mines, Wesdome’s goal to become Canada’s next intermediate gold producer seems within reach.

Sandstorm Gold

After a transformative acquisition, expect Sandstorm Gold (TSX:SSL) to shine brighter in 2022. On May 2, the $1.75 billion gold royalty company signed a definitive agreement to acquire Nomad Royalty Company (TSX: NSR).

Once Sandstorm completes the $755 million transaction, its size and scale should increase considerably. It will also cement Sandstorm’s status as the largest, highest-growth, and most liquid mid-tier royalty and streaming company. With this addition of high-quality, low-cost assets, nearly 90% of Sandstorm’s revenue is expected to come from precious metals by 2025.

At $9.14 per share, Sandstorm is up 17% year-to-date. (Market analysts’ 12-month average price target is $13.03.) Your overall return should be slightly higher with the 0.9% dividend.

SSR Mining

SSR Mining (TSX:SSRM), which operates precious metal resource properties, is holding ground during the market volatility with a 33% year-to-date gain. The $6.31 billion company also recently increased its modest quarterly dividend by 40%.

According to management, SSR’s strong balance sheet will support the company’s high-return growth initiatives. And the company intends to prioritize capital returns initiatives thanks to the anticipated robust free cash flow in the second half of 2022.

Time to Go for Gold

The materials sector, which includes gold stocks, has risen almost 20% in the past three months alone and is outperforming the broader market year to date. I think Wesdome, Sandstorm, and SSR Mining are smart safe-haven investments today for their market-beating returns.

The post 3 TSX Gold Stocks to Buy to Protect Against a Market Crash appeared first on The Motley Fool Canada.

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More reading

SSR Mining Stock Gains 7.5% After Q1 Results
TSX Today: What to Watch for in Stocks on Wednesday, May 4
TSX Today: What to Watch for in Stocks on Tuesday, May 3
2 Gold Stocks to Buy as an Inflation Hedge
3 Top Mining Stocks in Canada

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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