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Mining Stocks May Outperform Gold Itself, Analysts Say

Written by Carla Teles
Published on 28/03/2025 at 21:47
Ações de mineradoras podem superar o próprio ouro, apontam analistas
Investir em ações de mineradoras pode dar mais lucro do que comprar ouro direto. Mas, como todo investimento, tem seus riscos e precisa ser bem pensado.
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With The Metal’s Historic High, Experts See In Mining Companies An Opportunity To Multiply Profits, But With Increased Risks

The rise in gold prices in 2025 has sparked interest among investors worldwide. However, more than just investing directly in the precious metal, analysts point out that mining company stocks may provide even more significant returns. According to a report from InfoMoney, companies like Barrick Gold and Newmont have registered robust gains in recent months, keeping pace with or even surpassing the increase in gold prices in the international market. At the same time, experts warn: the risks are proportional to the profit potential.

When the price of gold rises, mining companies tend to multiply those gains on the stock market. This happens because the revenues of these companies are directly impacted by the metal’s price. According to InfoMoney, while gold surpassed US$ 3,000 per troy ounce, stocks such as Barrick Gold (GOLD) and Newmont Corp. (NEM) recorded significant increases, with shares trading at US$ 19.14 and US$ 48.08, respectively. The leverage effect is one of the reasons why many investors prefer to bet on mining companies rather than physical gold or ETFs.

But The Risk Of Mining Companies Is Greater

While attractive, mining company stocks are sensitive to a range of factors beyond gold prices. Strikes in mines, environmental issues, currency fluctuations, and political instability in producing countries can impact the performance of these companies. Julius Baer, in a recent report, emphasized that investors should assess their risk profile before allocating capital in this sector. Like any stock, mining shares can fall more than the metal itself during downturns.

ETFs and BDRs: Practical Ways To Invest In Mining Companies

For those seeking more practical access to the sector, experts from B3 recommend ETFs or BDRs (Brazilian Depositary Receipts for foreign stocks traded on the Brazilian stock exchange). These options allow exposure to the largest global mining companies without the need to open accounts with international brokers. In addition, they offer higher liquidity and lower custody costs compared to the physical purchase of gold. According to the portal Bora Investir, these are interesting alternatives to diversify and enter this market with greater security.

Gold’s Rise Reinforces Demand For Mining Companies In 2025

The appreciation of gold this year was driven by various factors: geopolitical tensions, persistent inflation, and uncertainties about U.S. monetary policy. These elements increased demand for protection assets, thus the mining sector gained even more relevance. InfoMoney highlights that the performance of mining companies continues to be a direct reflection of gold movement, and the current moment has strongly favored this type of asset.

Is It Worth Investing Now?

It all depends on the investor’s strategy. If the expectation is for continued growth in gold prices, mining company stocks may offer higher returns. However, it is crucial to consider operational risks and fluctuations typical of the sector. As emphasized in the InfoMoney report, the most advisable approach is to build a diversified portfolio and align investments with medium and long-term objectives. For many, the shine of mining companies can overshadow even that of gold itself, but one must enter the game with eyes wide open.

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Carla Teles

I produce daily content on economics, diverse topics, the automotive sector, technology, innovation, construction, and the oil and gas sector, with a focus on what truly matters to the Brazilian market. Here, you will find updated job opportunities and key industry developments. Have a content suggestion or want to advertise your job opening? Contact me: carlatdl016@gmail.com

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