Gold’s Relentless Outperformance
The AI trade has dominated headlines in 2025, but the real winners are gold miners. The MSCI World Gold Miners Index has exploded 135% this year, trouncing the 40% gain in the MSCI semiconductor benchmark.
Gold itself is up 45% year-to-date, its best run since 1979, supported by:
- Central bank accumulation across emerging markets.
- Federal Reserve rate cuts boosting non-yielding assets.
- The global de-dollarization push driving demand for hard assets.
- ETF inflows hitting multi-year highs.
For investors, miners remain the most leveraged way to play this momentum.
The Standout Performers
- Newmont Corp. and Agnico Eagle Mines Ltd. have more than doubled.
- Zijin Mining in Hong Kong has surged 130%.
- Fresnillo Plc in London nearly quadrupled, topping the FTSE 100.
Valuations Still Attractive
Gold miners: ~13x forward earnings — slightly below their 5-year average.
Semiconductors: ~29x forward earnings — well above their average.
Earnings growth is running faster than prices in the gold sector, leading to expanding margins, stronger free cash flow, and more potential for dividends and buybacks.
WSA Take
Gold miners are delivering cash flow and real earnings power while chip stocks rely on stretched multiples. Even after a 135% run, valuations look reasonable — especially with central banks and funds treating gold as a structural hedge.
In 2025, gold isn’t just insurance — it’s leadership.
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Disclaimer
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