Mutual funds investing in gold mining companies are stealing the spotlight in 2025, outperforming even AI and tech funds. Investors are betting that record gold prices will drive strong margins, cashflows, and shareholder returns.
Key Highlights:
- Year-to-date performance: Gold mining funds +114% vs tech +27%, natural resources +23.7% (LSEG Lipper).
- Q3 inflows: $5.4B — largest quarterly move into gold miners since 2009.
- Miners like Newmont and Barrick report strong earnings, share buybacks, and dividend hikes.
- Smaller miners and explorers offer higher leverage to gold prices, with continued industry consolidation expected to boost valuations.
- Despite gains, the MSCI gold miners index trades below its 10-year average P/E, leaving room for further expansion.
“At 30% free cash flow margins, gold companies have never had it better,” says Adrian Hammond, SBG Securities.