Gold Stock Investment Guide: From Price Surges to Individual Stock Picks, Who Is the Most Worthwhile Leader in Gold Concept Stocks to Invest In?

The Perfect Time for Gold Stocks Has Arrived

Since the beginning of 2025, the global gold market has experienced unprecedented prosperity. In just three months, gold prices hit new highs 20 times, and COMEX gold futures surged by $430 within 8 trading days, a 15% increase, breaking the psychological barrier of $3,500 per ounce. The driving forces behind this rally come from three directions: escalating geopolitical risks (Russia-Ukraine conflict, Middle East tensions) boosting safe-haven demand; weakening US dollar credit fundamentals coupled with Federal Reserve rate cut expectations lowering the cost of holding gold; and continuous central bank gold purchases, with official gold buying in 2024 surpassing the thousand-ton mark for the third consecutive year.

All of this is directly reflected in the gold stock market. US gold mining stocks have shown strong momentum—Canadian mining giant Agnico Eagle (AEM) has risen 42% since January, South African DRDGold soared 57%, and the SPDR Gold Shares ETF (GLD), tracking spot gold prices, approached a 20% return for the year. The gold stock market has officially entered an excellent investment window.

What Exactly Is the Gold Stock Market? Why Isn’t It Fully Correlated with Gold Prices?

The gold stock market, simply put, refers to stocks of publicly listed companies related to the gold industry. These companies are involved in gold exploration, mining, processing, sales, and gold investment services. On the surface, the performance of gold stocks should be perfectly synchronized with gold prices, but in reality, that’s not the case.

Gold stock prices are also influenced by company operations, market sentiment, cost control, and other factors. Sometimes, gold prices rise by 50%, but gold stocks increase by 100%; other times, gold prices fall by 15%, but gold stocks drop by 38% (as seen from April to October 2022). This is why gold stocks can offer higher returns than direct gold investment, but also come with greater volatility risk.

Comparing Investment Methods in the Gold Stock Market: Direct Holding vs. Concept Stocks

Before investing in the gold stock market, clarify your investment approach.

Physical gold and gold ETFs: These are relatively stable risk options because gold as a precious metal maintains a relatively constant value. However, they offer lower returns and involve storage costs. Gold ETFs track spot or futures contracts, with prices closely related to gold prices, making them the choice for most investors. According to UBS forecasts, the net inflow of gold ETFs in 2025 is expected to reach 450 metric tons, reflecting optimistic market demand for gold investment.

Gold concept stocks: These carry higher risks but offer greater profit potential. When gold prices rise, gold companies with fixed production costs often see profits grow much faster than gold prices. For example, in Q1 2025, Newmont’s net profit grew nearly 11 times year-over-year, reaching $1.68 per share, far exceeding the expected $0.9, mainly due to stable gold output and soaring gold prices.

Investment recommendations: For stability and preservation of value, choose physical gold or ETFs; for higher returns willing to accept volatility, choose gold stocks.

Leading US Gold Stocks Matrix

The US gold stock market is divided into three main segments based on upstream, midstream, and downstream.

Upstream (Mining and Smelting): Companies directly extracting gold from mines, benefiting most from rising gold prices.

• Newmont (NEM): The world’s largest gold producer and the only gold company in the S&P 500. In Q1 2025, it set a new record with a net profit of $1.9 billion, up 11 times YoY; adjusted EPS of $1.25, surpassing the expected $0.9. Despite an 8.3% YoY decline in gold production to 1.54 million ounces, gold prices surged to $2,944 (up 41% YoY), directly driving explosive profit growth.

• Barrick Gold (GOLD): One of the largest gold miners globally, with a market cap over $27 billion, operating 16 mines across 13 countries. In Q1 2025, gold output reached 758,000 ounces (meeting the upper estimate), with revenue of $3.13 billion, up 13.8% YoY. The average realized price increased from $2,075 to $2,898, with adjusted EPS of $0.35, exceeding the forecast of $0.30. Full-year production is expected to remain between 3.15 and 3.5 million ounces.

• Kinross Gold (KGC): A specialized precious metals miner. In Q1 2025, free cash flow doubled, and a $650 million shareholder capital return plan was announced. Gold equivalent production was 512,088 ounces, with a YoY margin increase of 67% to $1,814 per ounce, and operating cash flow of $597.1 million.

Midstream (Financing and Precious Metal Streaming): Not directly mining but financing mines and earning dividends from mineral sales.

• Wheaton Precious Metals (WPM): Founded in 2004, has signed global precious metal purchase agreements, benefiting from discounted purchase prices. In Q1 2025, EPS was $0.55, exceeding expectations of $0.52; revenue of $470 million, up 13% from estimates. Royal Bank of Canada raised its target price from $75 to $80 last month.

• Franco-Nevada (FNV): Similar streaming structure, characterized by stable cash flows.

Downstream (Processing, Sales, Jewelry): Companies engaged in gold product processing and retail, with relatively lower benefit levels.

The “Three Musketeers” of Taiwan Gold Stocks

Taiwan has fewer gold concept stocks; representative companies include:

KYMCO (1785): Major manufacturer in Taiwan’s precious and rare metal recycling economy. In Q1 2025, revenue was NT$8.243 billion, up 30.6% YoY; gross profit was NT$1.219 billion, up 70.6%; operating profit NT$839 million, up 145%. Driven mainly by rising precious metal prices and expansion in semiconductor target materials. However, due to volatility in gold stocks, financial hedging losses occurred, with net profit down 44.75% QoQ to NT$358 million, EPS of NT$0.6.

Jin Yi Ding (8390): Major Taiwanese metal resource recycling company, with 30% of revenue from precious metals recycling and 50% from industrial metals. In Q1 2025, revenue was NT$1.106 billion, pre-tax net profit NT$145 million, EPS of NT$1.22, with significant YoY growth. Benefiting from TSMC’s supply chain expansion and the turnaround of its Chinese subsidiaries.

Jialong (9955): Taiwanese precious metals refining company, with 90% of revenue from metal sales. In Q1 2025, revenue was NT$320 million, up 12% YoY; EPS of NT$0.38, about 8% higher than the same period last year. Benefiting from rising global precious metal prices and recovering semiconductor industry demand.

Five Major Factors Driving Volatility in the Gold Stock Market

Gold price fluctuations are the most direct influence. According to the World Gold Council, in Q1 2025, global gold demand reached 1,206 tons, a new high since 2016 for the same period. Goldman Sachs forecasts gold could reach $3,700 by the end of 2025, with an extreme scenario of $4,500; UBS maintains a target of $3,500.

Global economic conditions: Recession, political turmoil, and increased risk aversion boost gold prices and the gold stock market.

Monetary policy and interest rates: Low interest rates reduce the cost of holding gold, favoring price increases. Conversely, rate hikes to combat inflation may shift investor focus.

Mining costs and operational efficiency: Rising labor, energy, and environmental costs squeeze profits; technological advances and management optimization improve profitability.

Supply and demand structure: Limited mineral supply and declining recycling lead to supply shortages, supporting gold prices. Continued central bank gold purchases further strengthen demand.

Investment Tools and Platforms for the Gold Stock Market

Investment Method 1: Funds and ETFs for Diversification

VanEck Gold Miners ETF (GDX) and Junior Gold Miners ETF (GDXJ) are convenient entry points into the gold stock market. GDX focuses on large companies like Newmont and Barrick, with a 1-year return of 29.92% and 5-year return of 26.69%; GDXJ emphasizes small-cap companies, with 1-year return of 32.59% and 5-year return of 27.85%. Both ETFs effectively diversify risk.

Investment Method 2: Direct Stock Purchase

Investing in Taiwan gold stocks can be done through domestic brokers; for US stocks, via cross-border or overseas brokers. Main platforms include Mitrade (supports Taiwan accounts, 0 commission, minimum $50 investment), Interactive Brokers (per share $0.005, no minimum deposit), D.M. Securities (0 commission, Chinese support), and First Securities (0 commission, no minimum balance).

Future Outlook and Investment Conclusion for the Gold Stock Market

Looking ahead, the gold stock market will show three major trends:

Long-term upward space for gold prices: Although short-term corrections may occur due to optimistic trade sentiment, ongoing geopolitical tensions in Russia-Ukraine, Middle East, and US-China trade negotiations will continue to support safe-haven demand, keeping gold prices high in the long run.

Expansion of mining capacity: High gold prices incentivize miners to expand production in resource-rich regions like Africa, Australia, and South America. The global gold mining industry is expected to grow steadily from 2025 to 2030, with Asia and North America as the main growth markets.

Technological innovation improving efficiency: AI and big data are revolutionizing gold mining. In 2024, mining companies invested $218 million in AI, and after 2035, risk premiums are expected to decline significantly, benefiting long-term performance of gold stocks.

Overall, the gold stock market is undoubtedly a key investment track in today’s capital markets. By grasping industry development trends and adopting reasonable investment strategies, investors can achieve substantial returns in the gold stock market. Whether through ETF diversification or selecting individual stocks for concentrated deployment, the gold stock market is worth carefully including in your investment portfolio.