Gold Mining Stocks Surge 90% as Bullion Hits Record $3,600 | Silver & Gold Playbook
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Gold Mining Stocks Surge 90% as Bullion Hits Record $3,600

Gold Mining Operations
Mining ETFs Outpace Physical Gold by 3-to-1 as Historic Margins Drive Unprecedented Rally
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Editor's Note

A federal appeals court recently ruled on the legality of certain presidential tariffs while the Fed prepares for a closely-watched rate decision, potentially creating notable market opportunities in precious metals. The convergence of these policy developments has contributed to extraordinary strength in gold mining stocks, with some ETFs up nearly 90% year-to-date. Could these conditions support what some analysts suggest may be a generational opportunity in gold miners?

Based on these events, one of our 'Trusted Partners' just launched a Must-See presentation below.
Trusted Partner Presentation

Why Are Famous Billionaires Buying This Gold Miner?

Gold Mining Investment

Gold legends-Eric Sprott, Goldcorp founder Rob McEwen, and Kinross founder Bob Buchan-each own a sizable stake in a small Nevada gold miner.

Why?

Because it's already producing gold, has major infrastructure in place, and sits in one of the world's top gold mining regions.

When billionaires get in early, there's a reason.

See why these gold giants are backing a company still trading under $1

Markets are experiencing notable shifts as gold reportedly approached the $3,600 level, with year-over-year gains that some sources estimate at approximately 45%, while gold mining companies demonstrate even more dramatic outperformance. Mining giants like Newmont (NEM) and Barrick (B) have reportedly seen substantial gains this year - with Newmont nearly doubling and Barrick up approximately 72% - as the combination of record gold prices and declining production costs creates what some analysts describe as unprecedented profit margins. The VanEck Gold Miners ETF (GDX) has reportedly gained approximately 89% year-to-date, significantly outpacing physical gold's 35% rise, while junior miners show even stronger performance. Several catalysts are converging to potentially support this sector, with various institutional investors reportedly increasing allocations to mining stocks.

Gold Mining Economics Creating Historic Opportunity

$2,000+
Per ounce profit margins at current gold prices, with production costs around $1,593/oz

Mining companies are reportedly achieving remarkable operational leverage as gold trades near $3,600 per ounce while production costs remain controlled. Newmont reportedly reduced its all-in sustaining costs to approximately $1,593 per ounce, potentially creating margins exceeding $2,000 per ounce - levels that industry veterans suggest are rarely seen. The sector is implementing automation and AI technologies to further reduce costs, with companies like Barrick reporting production increases of 5% quarter-over-quarter at key mines. This combination of high commodity prices and controlled costs has led some prominent analysts, including Peter Schiff, to suggest it may be "far too early to take profits" despite the substantial gains already achieved.

Central Banks and Policy Shifts Driving Gold Demand

710 tonnes
Approximate central bank gold purchases in 2025, with 43% considering increasing holdings

The federal appeals court's ruling on August 29 regarding presidential authority under the International Emergency Economic Powers Act has created uncertainty that traditionally benefits gold prices. According to various reports, central banks may have purchased approximately 710 tonnes of gold in 2025, with surveys suggesting 43% of central bankers are considering increasing holdings further. This institutional demand, combined with market pricing that suggests a high probability of potential Federal Reserve rate adjustments on September 17, creates what some analysts at RBC Capital Markets have characterized as potentially favorable conditions for both physical gold and mining stocks.

Mining ETFs Showing Exceptional Performance

89%
VanEck Gold Miners ETF (GDX) year-to-date gains, outpacing physical gold by 3-to-1

The VanEck Gold Miners ETF (GDX) has reportedly seen year-to-date gains of approximately 89%, while the junior miners ETF (GDXJ) shows gains near 85%, according to market data. Other specialized mining ETFs like the Global X Gold Explorers ETF (GOEX) and Themes Gold Miners ETF (AUMI) have reportedly gained 86.4% and 92% respectively. This outperformance relative to physical gold - which has gained approximately 35% year-to-date - reflects what some analysts describe as operational leverage, where mining profits potentially expand faster than the underlying commodity price.

Another important presentation from our Trusted Partners:
Trusted Partner Presentation

This Gold Miner's Next Move Could Be a Game-Changer

Gold Mining Investment

A small-cap Nevada gold miner is already producing and has expansion in sight-backed by an onsite refinery and a $6 billion gold asset it's just starting to tap.

But that's not all.

One of gold's most legendary investors recently doubled his stake in the company.

He's not alone.

And if the expansion hits, this could be the moment retail investors wish they had watched more closely.

Find out what's behind the growing buzz.

Individual Mining Stocks Attracting Attention

Newmont (NEM), trading around $69 according to recent quotes, reportedly generated $2 billion in Q2 net income while maintaining $6.2 billion in cash reserves and announcing a $6 billion buyback program. Barrick (B), at approximately $23, trades at roughly 9.88 times forward earnings according to analyst estimates, below the industry average. Franco-Nevada (FNV), a royalty company, has reportedly increased its dividend by 5.6% annually while providing exposure to gold without operational risks. These companies' strong cash generation at current gold prices has led various analysts to maintain or upgrade their ratings.

What This Could Mean for Mining Investors

The combination of record gold prices, successful cost containment, and what some describe as institutional underweighting in the sector creates conditions that certain analysts suggest could support continued outperformance. Goldman Sachs and other firms have projected potential gold prices that, if realized, could further benefit mining stocks given their operational leverage. However, mining investments carry significant risks including operational challenges, geopolitical uncertainties, and the inherent volatility of commodity prices. As the Fed's decision approaches and various policy deadlines near, the sector's exceptional year-to-date performance raises questions about sustainability. Do investors have the research framework and risk tolerance needed to evaluate whether this gold mining rally has further to run?

Before You Go...

Trusted Partner Presentation

Barron's: "Gold is about to shoot even higher"

Right now, gold might be the hottest investment on the planet.

It just soared to new all-time highs of $3,500.

And so far this year, it's been beating every popular investment out there — the S&P 500, tech stocks in the Nasdaq and even Bitcoin.

Gold analyst Sean Brodrick called this historic rally every step of the way.

After the election last year, Brodrick went out on a limb and declared the yellow metal was going much, much higher.

Everybody laughed at him at the time.

But as the trade wars sent stocks into a tailspin, gold surged to $3,150 — just like Sean predicted.

And that's just the start.

Sean says 4 powerful market forces will push it to new record highs.

In fact, his research says gold could soar to $6,900 per ounce — more than double from the current levels.

And right now, investors have a rare chance to make even bigger gains.

Without buying a single ounce of bullion!

Instead, this little-known investment has a long history of returning 13 times… 21 times… 157 times… even a surprising 1,000 times more than physical gold.

Here's everything you need to know.

This article is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Mining stocks are volatile and may not be suitable for all investors. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.

Investment Disclaimer: The information provided is for educational purposes only and does not constitute investment advice. All investments carry risk of loss, and past performance does not guarantee future results.
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Sources

  • [1] Original Sources: finance.yahoo.com, stocktwits.com, fool.com (September 2-4, 2025)
  • [2] Additional Verified Sources: Bloomberg, CNN Business, Discovery Alert (September 1-3, 2025)
  • [3] Yahoo Finance ETF Analysis - Publication Date: September 2, 2025
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