Gold mining stocks are outperforming top tech firms and Bitcoin in 2025, driven by a dramatic surge in gold prices—now over $4,000 per ounce. The S&P Global Gold Mining index has jumped 126%, with miners like Newmont, Barrick, and Agnico Eagle reaping huge profits as fixed costs turn price gains into pure margin. Yet, investor memories of past boom-and-bust cycles loom large, according to the Financial Times. Fears are growing that the industry could repeat mistakes from the last gold bull run, including overspending, poor M&A decisions, and bloated executive pay. Investors are urging miners to prioritize discipline, shareholder returns, and long-term value over short-term excess. They write:
Gold mining stocks are outstripping leading artificial intelligence companies and bitcoin, as a bull run in precious metals fuels an even stronger rally for the “unloved” companies that dig them from the ground.
The S&P Global Gold Mining index has surged 126 per cent this year, the best performer among the S&P sector indices. […]
But the outperformance has sparked questions about whether the industry can maintain its financial discipline, with the sector still haunted by memories of the gold rush that followed the global financial crisis — and the crash that followed. […]
By comparison, Nvidia has added 40 per cent, Oracle is up 72 per cent, Google owner Alphabet has put on 30 per cent and there has been a 25 per cent increase at Microsoft. Bitcoin has risen 31 per cent.
But gold industry money managers worry about a return to past excesses, and are asking companies to stay focused. […]
Marcelo Kim, a partner at Paulson & Co, caused a stir in 2017 when he lambasted gold miners for the excessive sums they paid their corporate leaders, saying investors behaved like “sheep being led to the slaughter” when approving executive packages.
But, he added: “If they do the right things, they should just make a boatload of money.”
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