Gold has risen to record levels in the past year, helped by demand from exchange traded funds that track the yellow metal. Yet the bigger winners have been investors in the companies that mine gold, rather than those who invest in the precious commodity itself.
China’s largest mining company Zijin Mining Group is an example. As gold, copper and silver prices hit records, Zijin’s estimated net income rose nearly two-thirds to Rmb52bn ($7.4bn) last year. Its shares more than doubled in 2025, giving it a market capitalisation of $130bn. It is now projecting double-digit growth in gold and copper output for the current year.
Gold miners have not always been such straightforward bets. Even during times when gold prices rose, mining stocks have often lagged, weighed down by high costs or aggressive expansion strategies including large acquisitions. Miners often hedge their exposure to prices, which protects them when they fall, but reduces their upside when prices rise.