Gold Stocks Trounce AI-Led Chip Rally With 135% Gain in 2025

Core Insights - Gold miners have outperformed AI-related stocks, with gold equities rising about 135% this year compared to a 40% increase in major global semiconductor firms [2][3] Group 1: Market Performance - The MSCI gold equities index has significantly outperformed the semiconductor index, highlighting a shift in investor focus towards gold amid central bank accumulation [2][3] - Gold itself has increased over 45% this year, reaching new all-time highs and on track for its best performance since 1979 [4] Group 2: Investment Sentiment - Investors are drawn to gold due to its safe haven appeal and the ongoing rally, despite the hype surrounding AI investments [3][4] - Central banks' buying activity, Federal Reserve rate cuts, and the trend of de-dollarization are supporting gold prices [4] Group 3: Company Performance - Major gold mining companies like Newmont Corp. and Agnico Eagle Mines Ltd. have seen their stocks more than double in 2025, while Zijin Mining Group's shares have surged over 130% [5] - Fresnillo Plc has nearly quadrupled in value, making it the best performer in the FTSE 100 Index [5] Group 4: Valuation Comparisons - The MSCI gold miner index trades at 13 times forward earnings estimates, which is below its five-year average, while the semiconductor index trades at 29 times, significantly above its average [6] - Despite the rise in gold prices, miners' valuations remain attractive as earnings growth has outpaced price increases [7]