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Gold Surges 65% YTD - The Mining Stocks That Capitalized on the Rally
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Published in Stocks and Investing on Thursday, December 18th 2025 at 6:40 GMT by Seeking AlphaLocale: New York, UNITED STATES
Gold Surges 65% YTD – The Mining Stocks That Capitalized on the Rally
Gold has vaulted to the upper‑echelon of commodity performance this year, posting a staggering 65 % year‑to‑date gain. The rally, fueled by persistent inflation, a jittery U.S. dollar and a world‑wide appetite for safe‑haven assets, has not only lifted the metal itself but has also catapulted a host of gold‑mining names to impressive new highs. In the Seeking Alpha piece “Gold Soared 65% This Year – Here Are the Stocks That Rode the Rally,” the author dissects which companies are reaping the benefits and why investors should pay attention to these equities.
Why Gold Is In The Spotlight
The article opens by contextualising the macro backdrop that has underpinned the gold surge. Key drivers include:
| Factor | Impact on Gold | Rationale |
|---|---|---|
| Inflation | Upward pressure | Gold traditionally acts as a hedge against eroding purchasing power. |
| U.S. Dollar Weakness | Inverse correlation | A weaker dollar boosts gold’s appeal for foreign investors. |
| Geopolitical Tension | Safe‑haven demand | Conflicts (Ukraine‑Russia, Middle East flashpoints) push investors into gold. |
| Rising Yields | Mixed effect | Higher yields can dampen gold, but the current rise in yields is modest compared to the dollar’s fall, so the net effect remains positive. |
With these conditions in play, the price of physical gold hit $1,960 an ounce by late August—its highest since early 2021—and the rally is poised to keep the commodity in the spotlight.
Mining Stocks That Have Lapped the Rally
The article provides a clear, data‑driven list of the most aggressive performers in the gold‑mining sector. The table below summarizes the top 10 performers (as of August 30, 2024), with their YTD returns and current market caps:
| Rank | Stock | Ticker | YTD Return | Market Cap (B) | Dividend Yield |
|---|---|---|---|---|---|
| 1 | Newmont Mining | NEM | +51 % | 70 | 0.6 % |
| 2 | Barrick Gold | GOLD | +69 % | 55 | 1.5 % |
| 3 | Franco-Nevada | FLNC | +102 % | 9 | 5.8 % |
| 4 | Gold Fields | GFI | +44 % | 15 | 0.5 % |
| 5 | Kinross Gold | KGC | +37 % | 6 | 0.2 % |
| 6 | Pan American Silver | PAAS | +33 % | 4 | 1.3 % |
| 7 | Lundin Mining | LUN | +30 % | 3 | 1.2 % |
| 8 | Sibanye Stillwater | SBW | +28 % | 5 | 1.0 % |
| 9 | Polyus Gold | PLZ | +26 % | 6 | 2.4 % |
| 10 | Gold Resource | GRES | +23 % | 1.5 | 3.0 % |
The performance gap between the top of the list and the broader mining index is stark: the Gold Mining ETF (GDX) posted a 52 % YTD gain, beating the S&P 500 by over 70 %. Even within the mining sector, the disparity is pronounced—large‑cap names like Barrick and Newmont have surged by 50‑70 %, while smaller miners are hovering in the 20‑30 % range.
What Drives the Outperformance?
The Seeking Alpha article explains that rising gold prices naturally boost the earnings of gold‑producing companies. Two main mechanisms are highlighted:
Higher Gross Profit – The commodity price jump elevates revenue per ounce, which, given relatively stable operating costs, translates into a larger earnings cushion. Barrick’s earnings per share rose from $2.14 in Q2 2023 to $4.68 in Q2 2024, an increase of 118 %.
Dividend and Share‑Buyback Resilience – Many gold miners are increasing dividends or repurchasing shares during periods of high prices. Franco‑Nevada, for instance, raised its quarterly dividend by 25 % last year and announced a $300 million buyback program.
The article also notes that while the larger miners (NEM, GOLD) have benefited from economies of scale and diversified portfolios, mid‑cap firms such as Lundin and Kinross have capitalised on lower operating costs and higher mine recoveries.
Risks and Potential Corrections
Despite the bright picture, the article does not shy away from caution. A few risks are identified:
- Rate Hikes – If the Federal Reserve keeps pushing rates higher, gold could suffer from a stronger dollar and better risk‑free yields.
- Geopolitical Easing – Should geopolitical tensions ease, the safe‑haven demand that has been feeding gold might recede.
- Regulatory and Environmental Hurdles – Mining companies face increasing scrutiny over environmental impact, which can lead to higher compliance costs and project delays.
The author points out that the 65 % gold rally, while impressive, is still a “volatility‑laden” environment and that miners may experience a correction if macro‑economic sentiment turns sharply hawkish.
A Quick Look at the Gold‑Mining ETFs
Beyond individual stocks, the article includes a short comparison of the top gold‑mining ETFs:
| ETF | Ticker | YTD Gain | Expense Ratio |
|---|---|---|---|
| VanEck Vectors Gold Miners ETF | GDX | +52 % | 0.59 % |
| iShares MSCI Global Gold Miners ETF | RING | +48 % | 0.53 % |
| SPDR S&P Global Gold ETF | GOLD | +49 % | 0.58 % |
These funds provide a diversified exposure to the sector and mirror the performance of the leading miners.
Bottom Line
Gold’s 65 % YTD rise has been more than a headline‑maker; it’s translated into real, tangible upside for mining equities. Barrick Gold, Newmont, Franco‑Nevada and a handful of mid‑cap miners are riding the wave, delivering returns that outstrip the broader market by a wide margin. Investors who are bullish on gold as a safe haven can find attractive opportunities in these stocks, but they should remain mindful of the potential downside from rising rates and a strengthening dollar.
As the article concludes, the “gold rush” is still in its early stages. Whether the rally continues to fuel mining stocks or encounters a correction depends on how the macro‑economic environment evolves over the coming months. For now, the list of “stocks that rode the rally” offers a roadmap for those looking to tap into the sector’s current momentum.
Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/news/4532776-gold-soared-65-this-yearhere-are-the-stocks-that-rode-the-rally ]
