Mining stocks experienced a significant surge at the beginning of the year, driven by record highs in gold, silver, and copper prices on Wednesday (Thursday AEDT). This rally has been fuelled by ongoing geopolitical tensions and a renewed demand for safe-haven assets. The NYSE Arca Gold Miners Index has already increased by approximately 12 per cent in 2026, surpassing the 6.9 per cent rise in spot gold and a more modest 0.7 per cent gain in the S&P 500 Index.
Investors are increasingly turning to miners as escalating risks involving the US, Iran, and Venezuela prompt investment flows into commodities considered to hold their value. Martin Pradier, an analyst at Veritas Investment Research, stated that gold serves as the world’s ultimate reserve currency, especially amidst global uncertainty. He suggested that investors should consider buying gold as a hedge against unpredictable geopolitical events.
The rise in bullion prices has resulted in substantial gains for producers, as their costs typically adjust more slowly than metal price increases. This dynamic led to significant returns last year, with the performance of major miners significantly exceeding that of the underlying commodity itself. For instance, shares of both Newmont and Agnico Eagle Mines more than doubled in 2025, while spot gold increased by about 65 per cent.
Analysts anticipate further growth, projecting that adjusted diluted earnings per share at both Newmont and Agnico Eagle Mines will climb by over 85 per cent year-over-year. This expectation reinforces the continued investor preference for miners, even after their strong performance, as they look to maintain their position in a market where commodities are experiencing strong price increases.
