Gold Mining Stocks Soar 135% in 2025, Outpacing AI Chipmakers
Gold miners surged 135% in 2025, marking their best year since 1979 and surpassing semiconductor stocks. Central banks and ETFs fueled the rally.
Gold mining companies have delivered the strongest returns of 2025, far ahead of the year’s semiconductor rally. MSCI’s global index of gold equities has climbed about 135%, while its semiconductor index is up 40%. This marks the largest performance gap ever recorded between the two groups.
Central Banks Increase Gold Reserves
Investors have continued to pour money into AI-linked companies, but demand for gold has been equally strong. Central banks across multiple regions have expanded their reserves, reinforcing confidence in the metal during a year of monetary easing.
“Gold and gold miners are one of my most bullish medium-term calls,” said Anna Wu, investment strategist at Van Eck Associates in Sydney. She noted that gold retains its safe-haven appeal, while miners gain from wider margins and stronger valuations.
Gold Marks Best Year Since 1979
Gold prices have advanced more than 45% in 2025, reaching a series of record highs. This is on pace to be the strongest annual performance since 1979. The rally has been supported by Federal Reserve interest-rate cuts, efforts to reduce reliance on the US dollar, and increased inflows into gold-backed ETFs.
Mining Stocks Lead Equity Gains
Several major miners have delivered extraordinary returns:
-
Newmont Corp. and Agnico Eagle Mines Ltd. have more than doubled on the New York Stock Exchange.
-
Zijin Mining Group Co. has climbed over 130% in Hong Kong, exceeding the rise of tech heavyweight Alibaba.
-
Fresnillo Plc, listed in London, has nearly quadrupled, making it the best-performing stock in the FTSE 100.
Valuations Remain Lower Than Tech
Despite sharp price increases, gold mining shares remain less expensive than technology stocks. The MSCI gold miner index trades at 13 times forward earnings, slightly below its five-year average. In comparison, the semiconductor index trades at 29 times, well above its historical range.
“Even with gold near record levels, mining company earnings have grown faster than share prices,” said Charu Chanana, chief investment strategist at Saxo Markets in Singapore. “That combination still supports elevated margins across the sector.”
