Despite widespread enthusiasm for artificial intelligence and a strong rally in semiconductor stocks this year, gold miners have emerged as the top performers in the equity markets so far in 2025. The MSCI World Gold Equity Index has jumped roughly 135% year-to-date, significantly outperforming MSCI’s global semiconductor index, which itself has gained 40%.
While many investors have been swept up by the AI frenzy, others have flocked to gold, buoyed by aggressive central bank purchases around the world. The surge in gold prices—up more than 45% to fresh record highs—has made this year the metal’s strongest since 1979, supported by steady central bank accumulation, Federal Reserve interest-rate reductions, a shift away from the US dollar, and increased inflows into gold-backed ETFs.
Anna Wu, a cross-asset investment strategist at Van Eck Associates Corp. based in Sydney, described her outlook on the sector as highly positive. She noted that “Gold and gold miners are one of my most bullish medium thematic calls,” citing the traditional safe-haven appeal of gold along with expectations that miners will see both margin expansion and better valuations.
According to MSCI’s gold mining index, an index that tracked the stock performance of gold mining companies around the world, Newmont Corp. and Agnico Eagle Mines Ltd. have seen their New York-listed stocks more than double so far this year. Meanwhile, Zijin Mining Group Co. has soared over 130% in Hong Kong, surpassing the advances of tech heavyweight Alibaba Group Holding Ltd.
From a valuation standpoint, the precious metals sector appears relatively attractive compared to tech peers. The MSCI gold miners index currently trades at 13 times forward earnings—slightly below its five-year average. In contrast, the semiconductor index is valued at 29 times, well above historical norms.
According to Charu Chanana, Saxo Markets’ chief investment strategist in Singapore, the gold price may ascend rapidly but the miners’ multiples remain reasonable as profits have outpaced share gains. She also added that if gold continues to hover near record levels, the sector’s cash-flow profile still supports robust margins.
