Gold miners dominate 2025 markets with 126% rally as investors rush to safe havens

Gold miners are destroying the competition in ￰0￱ is ￰1￱ stocks are ￰2￱ gold? It’s on ￰3￱ S&P Global Gold Mining index has jumped 126% since January, making it the best-performing sector across all S&P ￰4￱ insane rally in gold mining stocks is tied directly to the metal’s own boom, with gold prices shooting up 52% since the start of the ￰5￱ means names like Agnico Eagle, Barrick Mining, and Newmont are making more money than they know what to do with. “It’s been a very good year for gold stocks,” said Imaru Casanova, a portfolio manager at VanEck. “They have more cash than they know what to do with.” These companies have seen their profits explode because most of their production costs are ￰6￱ when gold prices jump, all that extra value goes straight to the bottom ￰7￱ bank cash but face old ghosts But not everyone’s cheering.

There’s real fear that this rush could fall apart, just like it did after the 2008 financial ￰8￱ then, a similar gold rush led to a wave of bad decisions: mergers that made no sense, rising production costs, and fat bonuses for ￰9￱ the 2011 peak, gold miners crashed 79% in four ￰10￱ added , “A lot of value was ￰11￱ investors’ minds, it’s still fresh.” And yet, here we are again, gold just passed $4,000 per troy ounce, boosted by central bank demand, a looming ￰12￱ shutdown, and rising panic over massive public ￰13￱ are diving back into gold stocks, hoping this time will be different. meanwhile, bond markets are acting like everything’s ￰14￱ gold’s insane run, bond traders aren’t pricing in high inflation.

That’s weird. Usually, skyrocketing gold prices are a sign that people fear the government will inflate away its ￰15￱ long-term inflation expectations, based on Treasury breakevens, haven’t moved. They’re still close to the Fed’s 2% ￰16￱ banks load up while inflation signals split There’s a gap ￰17￱ one side, you’ve got investors and central banks stocking up on gold, betting that politicians will let inflation rise instead of cutting ￰18￱ the other side, bond markets seem relaxed, assuming inflation is under ￰19￱ Japan, that bet ￰20￱ to the IMF, Japan’s net debt fell from 162% of GDP in 2020 to 134% this year, even though it kept spending more than it ￰21￱ the U.

S., it didn’t. Inflation rose, but net debt climbed from 96% in 2020 to 98% now. Still, gold has climbed 51% over the past 12 months, while the dollar has dropped 10%. Stocks are up too, driven more by AI hype than inflation ￰22￱ if this inflation trade—also called the “debasement trade”—catches on, things could flip ￰23￱ two clearest plays are betting on deep rate cuts while dumping long-term Treasurys, or betting on inflation breakevens ￰24￱ the 30-year Treasury yield has stayed mostly in the 4.5% to 5% range.

It’s lower than at the start of the year, and still below where it was before the latest gold surge six weeks ￰25￱ even now, investors don’t seem to believe inflation will erode ￰26￱ now, everything’s ￰27￱ investors expect a weak jobs market, pushing the Fed to cut ￰28￱ think the economy’s running hot, thanks to AI spending, which could trigger more ￰29￱ the Fed backs off rate cuts, all bets are off; stocks, bonds, and gold could all take a ￰30￱ your strategy with mentorship + daily ideas - 30 days free access to our trading program