Recently, gold prices have been hitting record highs, and I’ve noticed some related gold stocks performing particularly strongly. This market trend actually reflects deep changes in the global economic situation—rising geopolitical risks, continuous central bank gold purchases, and a weakening of the US dollar’s credit foundation. These factors combined have directly boosted market risk aversion sentiment.

Honestly, in the first quarter of last year, gold prices surged very sharply, setting more than 20 new historical highs within just three months, with a gain of 15%. Although there was a pullback later due to trade negotiations, mainstream institutions remained optimistic, believing the long-term support was still solid. This expectation was directly reflected in the performance of gold stocks, especially mining companies, which saw particularly explosive gains.

So, which gold stocks are worth paying attention to? Let me organize them. On the US stock side, upstream mining companies performed the best. Newmont (NEM), as the world’s largest gold producer, saw net profit explode 11 times in the first quarter of last year, reaching $1.9 billion, with earnings per share of $1.68, far exceeding expectations. Barrick Gold (GOLD), although its gold production declined during the same period, benefited from soaring gold prices, with the average realized price rising from $2,075 to $2,898, surpassing analyst forecasts. Goldcorp (KGC) also performed well, with free cash flow doubling and announcing a $650 million shareholder return plan.

Midstream license companies are also worth watching. Wheaton Precious Metals (WPM) has an interesting business model—it’s not a mining company but profits by signing purchase agreements with global mines. In the first quarter of last year, its earnings per share were $0.55, exceeding expectations, and its stock price rose 4.62% after hours.

What about gold stocks in Taiwan? Mainly three companies: KYOCERA, JIN YIDING, and Jialong. KYOCERA’s revenue in the first quarter of last year was NT$8.24B, up 30.6% year-over-year, with a gross profit margin soaring to 70.6%, making it the most watched. JIN YIDING, a resource recycling giant with a gold and precious metals business accounting for 30%, had a consolidated revenue of NT$1.11B in the first quarter of last year, with basic earnings per share of NT$1.22, performing quite well.

Investing in gold stocks has a clear advantage—its gains often exceed those of gold itself. Last year, gold prices rose about 20%, but some related concept stocks gained over 40%. Of course, this also means higher risk during downturns. For example, during the correction in 2022, gold fell 15%, but related stocks dropped 38%.

What are the ways to invest in gold stocks? Buying individual stocks is one method, but it concentrates risk. A safer approach is to diversify through ETFs, such as GDX and GDXJ, which include large global gold companies. Over the past year, their returns reached 29.92% and 32.59%, respectively.

Looking ahead, I believe there are still opportunities in this field. On one hand, the Russia-Ukraine situation and tensions in the Middle East continue to support safe-haven demand; on the other hand, high gold prices stimulate miners to expand capacity, and AI technology is improving mining efficiency. As long as you grasp these trends and make well-informed allocations based on the options available in gold stocks, you should be able to achieve good returns. Of course, before investing, you should also consider your own risk tolerance and investment goals comprehensively.