Gold stocks are on a strong rise: Where are the opportunities for global leaders and Taiwan?

In 2025, the financial markets witnessed a collective surge in the gold sector. Against the backdrop of rising global economic uncertainties and ongoing geopolitical risks, gold stocks have demonstrated gains far exceeding the broader market. Since the beginning of the year, major global gold stocks have generally increased by over 15%, with some high-quality targets doubling in value. So, which quality gold stocks are worth paying attention to? How do they leverage rising gold prices to multiply returns? How can ordinary investors seize this opportunity?

Why Are Gold Stocks the Focus of Capital Markets in 2026?

To understand the investment value of gold stocks, first clarify their essence. Gold stocks are publicly traded companies primarily engaged in gold mining, processing, trading, and related financial services. These companies participate directly in the entire process of exploration, extraction, refining, and sales of gold, with profitability closely linked to gold prices.

When gold prices rise, these companies’ mining costs remain relatively fixed, while they can sell gold at higher prices, significantly expanding profit margins. More importantly, the gains in gold stocks often far outpace the increase in physical gold prices — in 2025, gold spot prices rose about 20%, while many gold stocks gained 30% to over 40% annually.

The core factors driving gold stock increases mainly include three points:

First, rising risk aversion. The Russia-Ukraine situation shows no signs of easing, tensions persist in the Middle East, and U.S. new government tariffs are unpredictable. These factors collectively elevate market risk premiums. Investors increase allocations to gold to hedge systemic risks, directly boosting demand and gold prices.

Second, shifts in monetary policy. Expectations of interest rate cuts by global central banks continue to rise, with low-interest environments greatly reducing the holding costs of gold. Meanwhile, the weakening dollar outlook further enhances gold’s attractiveness relative to other assets.

Third, structural supply constraints. Official gold purchases by central banks worldwide have exceeded 1,000 tons for three consecutive years, with 2025’s official gold purchases surpassing 1,100 tons. Simultaneously, discoveries of new deposits decline, existing mines’ grades decrease, leading to supply growth far below demand growth, supporting a long-term upward trend in gold prices.

Notably, authoritative institutions like Goldman Sachs have recently forecasted that gold prices could further break through in the next one to two years, with structural demand supporting the potential for long-term appreciation.

What Are the Leading U.S. Gold Stocks Doing?

To accurately grasp investment opportunities in gold stocks, it’s essential to understand the industry chain composition.

Upstream mining and refining companies are the core of the gold stock sector. These firms directly extract gold from mines. Key players include the world’s largest gold producer Newmont Corporation (ticker: NEM), veteran miner Barrick Gold (GOLD), and Canada’s Kinross Gold (KGC). These companies are most sensitive to gold prices, with the most volatile stock movements.

Midstream royalty and streaming companies are an undervalued segment. Firms like Wheaton Precious Metals (WPM) and Franco-Nevada (FNV) do not directly mine gold but sign long-term purchase agreements to buy gold at discounted prices from mines and resell to refineries or investors. This business model involves lower risk and more stable cash flows.

Downstream jewelry and retail companies such as Signet Jewelers and Pandora are less affected by gold prices, as consumer demand for jewelry often lacks price elasticity.

Looking at specific stock performance in 2025, the differences are notable:

Among upstream miners, Newmont stands out due to its operational efficiency and cost control. In Q1 2025, it reported a net profit of $1.9 billion, nearly 11 times higher than the same period last year, with EPS of $1.68. Despite an 8.3% YoY decline in gold production due to some mine shutdowns, the soaring gold price to $2,944 per ounce (up 41% from the start of the year) drove explosive profitability.

Barrick Gold also performed well. In Q1 2025, revenue reached $3.13 billion, up 13.8% YoY. Although gold output fell from 940,000 ounces to 758,000 ounces, the average realized price jumped from $2,075 to $2,898, resulting in significant profit leverage. Adjusted EPS was $0.35, surpassing market expectations.

In the midstream royalty sector, Wheaton Precious Metals delivered strong results, with Q1 EPS of $0.55, beating expectations, and revenue exceeding $470 million. The Royal Bank of Canada raised its target price from $75 to $80, reflecting continued institutional optimism.

Kinross Gold showed growth potential through different avenues. In Q1 2025, free cash flow doubled YoY, and the company announced a $650 million shareholder capital return plan, indicating robust profits and ample cash for shareholder rewards amid rising gold prices.

Opportunities in Taiwanese Gold Stocks: Analyzing Three High-Quality Picks

Compared to the extensive U.S. gold stock universe, Taiwan’s options are limited but still present opportunities. The main Taiwanese gold-related listed companies participate in different parts of the industry chain.

Koyo Electronics (1785) is Taiwan’s leading precious metals processing company, founded in 1978, focusing on refining, recycling, and circular utilization of precious metals. Its business model differs from upstream miners, relying on technical processing and resource recovery.

In Q1 2025, Koyo posted impressive results: revenue of NT$8.243 billion, up 30.6% YoY; gross profit soared 70.6% to NT$1.219 billion; operating profit jumped 145% to NT$839 million. This reflects strong contributions from its non-precious metal segments, especially semiconductor target materials. Even considering hedging losses from precious metal price fluctuations, it maintains strong core competitiveness.

Goldyking (8390) is a Taiwanese leader in metal resource recycling, established in 1997. Its revenue sources include precious metal recycling (gold, silver, copper, etc., about 30%) and industrial metals (mainly copper, about 50%). With TSMC’s supply chain expansion, rising global precious metal prices, and subsidiaries turning profitable, Goldyking’s Q1 2025 results show steady growth: revenue NT$1.106 billion, operating profit NT$126 million, pre-tax profit NT$145 million, EPS NT$1.22, demonstrating stable profitability.

Jialong (9955) specializes in precious metal refining, with about 90% of revenue from metal sales, making it highly sensitive to gold prices. Although historically volatile and not paying dividends for over a decade, rising global precious metal prices and a rebound in semiconductor demand have improved its outlook. In Q1 2025, revenue was NT$320 million (up 12%), with a gross margin around 20%, net profit about NT$35 million, EPS approximately NT$0.38.

In summary, Koyo offers diversified business and stronger risk resistance; Goldyking is known for stable cash flow; Jialong has higher growth potential but also higher volatility. Investors should choose based on their risk appetite.

What Drives the Performance of Gold Stocks?

The stock prices of gold stocks are influenced by multiple factors, not just gold prices.

Gold price fluctuations are the most direct factor, but not the only one. According to the World Gold Council, global gold demand in 2025 reached 1,206 tons, a new high since 2016 for the same period. Market expectations suggest gold prices could continue rising over the next two years, providing solid fundamentals for gold stocks.

Macroeconomic environment also plays a crucial role. Recession fears and geopolitical risks boost safe-haven demand, pushing up gold prices and related stocks. Conversely, unexpectedly strong economic data or a shift toward risk-on assets may lead to corrections.

Company fundamentals are often overlooked. Even with rising gold prices, operational efficiency determines profit growth. Well-managed companies can see profits grow faster than production declines, while poorly managed firms may see margins eroded by rising costs. Recent challenges include rising labor costs and stricter environmental regulations, making cost control and technological innovation key differentiators.

Financing costs and exchange rates matter too. Rate cuts reduce borrowing costs, and a weaker dollar enhances gold’s relative appeal, jointly supporting stock gains.

Investment Approaches and Strategies for Gold Stocks

For ordinary investors, there are various ways to participate in gold stocks, tailored to individual circumstances.

Using ETFs for diversification is the most convenient approach. VanEck Vectors Gold Miners ETF (GDX) and the smaller-cap counterpart GDXJ are popular tools. GDX focuses on large miners like Newmont and Barrick, while GDXJ targets mid- and small-cap companies. As of mid-2025, GDX’s annual return was 29.92%, five-year return 26.69%; GDXJ’s annual return was 32.59%, five-year 27.85%.

Direct stock purchase suits investors with in-depth research. Through domestic brokers or overseas platforms like Mitrade or Interactive Brokers, investors can buy global gold stocks directly. Mitrade supports TWD deposits and withdrawals with zero trading fees, making it friendly for Taiwanese investors.

Selection logic should prioritize: companies with cost advantages and operational efficiency; secondly, those with shareholder return policies (dividends, buybacks), reflecting management confidence; and finally, consider geopolitical and regulatory risks—mines in politically stable, well-regulated countries are preferable.

Risks and Rewards of Investing in Gold Stocks

High potential returns come with corresponding risks.

Compared to direct gold or ETF investments, gold stocks are more volatile. In 2022, gold prices fell 15%, but gold stocks declined as much as 38%. This is because stocks are affected not only by gold prices but also by company operations and market sentiment. During economic uncertainty, investors tend to sell both gold stocks and high-risk assets, amplifying declines.

Company-specific risks include rising production costs, permit delays, environmental policy changes, etc. Different stocks face unique risks, requiring individual assessment.

Currency risk is also significant for non-USD investors. A rising dollar can offset gains from gold stocks.

Despite these risks, for investors with higher risk tolerance seeking capital appreciation, gold stocks offer attractive upside potential. Proper risk management, diversification, and timely adjustments are essential.

Future Outlook and Portfolio Strategies for Gold Stocks

Looking ahead, the sector is expected to remain strong, supported by:

Long-term drivers remain solid. Geopolitical risks are unlikely to disappear soon, maintaining safe-haven demand. The de-dollarization trend accelerates globally, with rising central bank gold purchases in emerging markets providing long-term fundamental support.

Supply-side constraints persist. Discoveries of new large deposits are declining, existing mines’ grades are decreasing, and environmental standards are tightening, raising costs and limiting supply growth. This scarcity is expected to cap downside risks for gold prices.

Technological advances open new opportunities. AI and big data are transforming mining operations—improving exploration, production scheduling, and cost control—potentially boosting industry efficiency and profitability. In 2024, global mining companies invested $218 million in AI systems, with continued growth expected.

Recommended deployment strategies include: conservative investors favor low-cost, diversified ETF allocations; aggressive investors focus on leading companies with cost advantages and shareholder-friendly policies. Regular review and disciplined risk management are crucial.

Overall, gold stocks are undoubtedly a bright spot in today’s macro environment. From U.S. giants like Newmont and Barrick to Taiwanese firms like Koyo and Goldyking, the specific opportunities depend on individual risk tolerance, investment horizon, and gold price outlook. Seizing this industry cycle is undoubtedly a wise asset allocation move.