Recently noticed an interesting phenomenon, many friends around me have started paying attention to gold concept stocks, which reminded me of the crazy gold price rally last year.

Speaking of which, the first quarter of 2025 was truly different. In just three months, gold prices hit twenty new all-time highs, a frequency I honestly had never seen before. At that time, market risk aversion was especially strong, with the Russia-Ukraine situation, tensions in the Middle East, plus uncertainties in U.S. tariff policies, causing investors to flock to gold, the traditional safe haven. Meanwhile, expectations of Federal Reserve rate cuts were brewing, weakening the dollar’s credit foundation, directly lowering the opportunity cost of holding gold. Global central banks were also frantically buying gold, surpassing a thousand tons for the third consecutive year, with mineral supply constrained, making the supply-demand structure particularly tight.

Interestingly, during that period, progress suddenly appeared in U.S.-China tariff negotiations, leading to a dramatic market rally. In just eight trading days, COMEX gold futures surged by $430, a 15% increase, breaking the psychological barrier of $3,500 per ounce for the first time in history, then quickly retreated. Such intense volatility indeed tested investors’ psychological resilience.

However, despite these short-term fluctuations, most mainstream investment institutions remained cautiously optimistic. Their logic was that, although the tariff-driven surge might be nearing its end, in the context of global strategic restructuring, the downside risk for gold prices was relatively limited. Especially with the ongoing de-dollarization wave, geopolitical risk hedging needs persist structurally, all providing long-term support for gold prices.

The strength of gold prices was directly reflected in the performance of gold concept stocks, especially those involved in gold mining and refining. Canadian mining giant Agnico Eagle broke through $89 in January, with a cumulative increase of 42%; South Africa’s DRDGold soared 57% year-to-date; even with a correction, Alamos Gold’s annual gain remained at 27%. The SPDR Gold ETF, tracking spot gold prices, approached a 20% return.

Speaking of gold concept stocks, they generally refer to listed companies whose business is related to gold. These companies involve exploration, mining, processing, sales, and financial services related to gold, and their performance and stock prices are often closely linked to gold prices. When economic uncertainty increases and monetary policies loosen, investors tend to shift funds into gold, pushing up gold prices and boosting these companies’ profits.

Many U.S. stocks are involved in gold concepts. Upstream mainly includes mining and refining companies like Newmont and Barrick Gold; midstream involves precious metal royalty companies that finance mining operations and earn revenue shares from mineral sales; downstream includes jewelers and product processing firms.

Among them, Newmont, as the world’s largest gold producer and the only gold mining company in the S&P 500, offers stability in uncertain market conditions due to its scale advantage. In the first quarter of last year, they set a record high, with net profit reaching $1.9 billion, a nearly elevenfold increase from the same period last year, with earnings per share of $1.68, far exceeding market expectations. Although gold production declined, driven by gold prices soaring to $2,944 per ounce, profitability showed strong growth.

Barrick Gold also performed well, as one of the largest global gold miners, with a market value over $27 billion. In the first quarter last year, gold output was 758,000 ounces, with revenue of $3.13 billion, up 13.8% from the same period last year. Despite a decrease in production, the average realized price rose from $2,075 to $2,898 per ounce, surpassing analyst expectations and boosting profitability.

Another noteworthy company is Wheaton Precious Metals, which is not a mining company but earns income through precious metal purchase agreements with global mines. Last year’s first quarter performance was excellent, with earnings per share of $0.55, beating market expectations, and revenue exceeding $470 million. Royal Bank of Canada also raised their target price from $75 to $80.

As for Taiwan’s gold concept stocks, representative ones include KYOCERA, JIN YI DING, and Chia-Lung. KYOCERA is a major manufacturer in Taiwan’s precious and rare metal recycling industry; last quarter, revenue was NT$8.243 billion, a significant 30.6% increase year-over-year, with gross profit soaring 70.6%. JIN YI DING is a large resource recycling company, with strong first-quarter results, with consolidated revenue of NT$1.106 billion. Chia-Lung, a precious metal refining company, has been loss-making for years, but driven by rising global precious metal prices, their first-quarter last year also showed steady performance.

Many factors influence the performance of gold concept stocks. The most direct is the price of gold itself—when gold prices rise, companies involved in gold mining and sales see increased revenue and profits, often pushing their stock prices higher. The global economic situation is also crucial; increased uncertainty raises risk aversion, boosting gold prices. Monetary policies and interest rates also matter—low interest rate environments generally favor higher gold prices. Additionally, production costs, operational efficiency, and supply-demand dynamics all impact gold concept stocks.

If you are optimistic about future gold prices, investing in gold concept stocks offers advantages over direct gold investment. The gains in gold stocks often surpass those of gold itself, making them suitable for investors seeking higher returns. They also provide diversification; during economic downturns, gold stocks tend to perform well, helping to spread risk. However, their downside is higher volatility—while they can enjoy larger gains during rallies, they can also fall more sharply. Different companies face management risks, including production costs, operational efficiency, and regulatory constraints.

For ordinary investors, there are mainly two ways to invest in gold concept stocks. One is through funds or ETFs, such as VanEck Vectors Gold Miners ETF (GDX) and the smaller Gold Miners ETF (GDXJ), which include a basket of major global gold-related companies, effectively diversifying risk. GDX focuses on large companies like Newmont and Barrick Gold, while GDXJ emphasizes small-cap firms, allowing investors to choose accordingly. The second is direct stock purchase—investors can buy Taiwan’s gold concept stocks through domestic brokers or buy U.S. stocks via overseas brokers.

Looking ahead, I believe there are many opportunities in the gold concept stock sector. On one hand, ongoing global economic and geopolitical uncertainties will continue to strengthen gold’s safe-haven status. Although short-term gold prices may face corrections due to certain factors, the long-term drivers remain intact. On the other hand, high gold prices will stimulate miners to expand capacity, especially in resource-rich regions like Africa, Australia, and South America. The global gold mining industry’s market size is expected to grow steadily in the coming years. Additionally, AI and big data technologies are revolutionizing gold mining, improving efficiency from exploration to production.

Overall, gold concept stocks are undoubtedly a market segment worth关注. As long as investors grasp industry trends and adopt reasonable strategies, they have the opportunity to achieve good returns in this field.