The MSCI global gold equities index has risen by approximately 135% over the year, following the surge in gold, which has appreciated by more than 45% and reached new historical highs. The gold mining equities index is trading at 13 times its projected earnings, slightly below the average for the past five years. This was reported by Bloomberg, writes UNN.
Details
Despite widespread interest in artificial intelligence and a significant increase in chipmaker stocks this year, investments in gold mining companies have proven to be more promising.
The MSCI Inc. global gold mining equities index has risen by approximately 135%, while the price of gold has soared. This indicator is confidently approaching a record level compared to the index of the largest semiconductor manufacturers, which has grown by only 40%.
Such a significant gap highlights an important trend in global financial markets this year. Investors seeking profits in the artificial intelligence sector are simultaneously paying attention to the stable growth of gold prices. Central banks worldwide are actively accumulating this precious metal.
Anna Wu, cross-asset strategist at Van Eck Associates Corp. (Sydney), considers gold and gold mining companies among the most promising assets for the medium term. Gold attracts as a "safe haven," and gold mining companies can benefit from increased margins and revaluation.
This year, gold has appreciated by more than 45%, reaching new historical highs and approaching its best performance since 1979. The growth was influenced by central bank purchases, interest rate cuts by the US Federal Reserve, de-dollarization, and increased investments in gold-backed exchange-traded funds.
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Shares of major gold mining companies such as Newmont Corp. and Agnico Eagle Mines Ltd., listed on the New York Stock Exchange, have more than doubled in 2025. Shares of China's Zijin Mining Group Co. jumped 130% on the Hong Kong Stock Exchange, outperforming the growth of China's AI sector leader — Alibaba Group Holding Ltd. London's Fresnillo Plc, which mines gold and silver, almost quadrupled its capitalization and became the best-performing asset in the FTSE 100 index.
At the same time, the precious metals sector causes significantly less concern about overvaluation than the technology sector. The MSCI Gold Miner index trades at a price-to-earnings ratio of 13, which is slightly below the average for the past five years. In comparison, the chipmakers index has a ratio of 29 — significantly higher than the five-year norm.
Charu Chanana, Head of Investment Strategy at Saxo Markets in Singapore, notes that even after the sharp rise in gold prices, the multiples of gold mining companies remain low. Profits have grown faster than prices, and if gold remains near record highs, cash flow calculations will continue to indicate high margins.
Recall
According to fintech expert and co-founder of Concord Fintech Solutions Olena Sosedka, such a rapid increase in the price of gold is just the tip of the iceberg.
The value of gold, according to her, reflects the fact that the world lives in a state of uncertainty and a crisis of trust.
"And when modern financial instruments look fragile, investors once again turn to the oldest symbol of stability – gold," Sosedka said.
She added that the US government "shutdown," internal political squabbles in Washington, and expectations of Fed rate cuts forced capital to flee from stocks to a "safe haven."
This movement is amplified, according to Olena Sosedka, by geopolitical tensions.
In addition, the rising value of gold means that investors are preparing for a weakening dollar. This is primarily due to expectations of interest rate cuts by the Federal Reserve. The logic is simple – if the Fed begins to ease its policy, the yield on dollar bonds will fall, and gold will become more attractive. After all, it does not depreciate along with the currency.