Gold stocks beat the gold by a wide margin

Gold miners are emerging as an attractive investment option as the precious metal rebounds from a recent decline. The VanEck Gold Miners ETF has surged over 125% since the start of the year, significantly outpacing the 57% gain recorded by the SPDR Gold Shares ETF over the same period.

Jeffrey Jacobson, head of derivatives strategy at 22V Research, noted that the VanEck Gold Miners ETF typically moves at double the rate of gold price movements, making it a leveraged play on the metal’s performance.

The recovery in gold prices has prompted increased interest in derivative strategies. Jacobson indicated in note that it represented an optimal time to consider upside option structures. He observed that gold has been trading like a risk asset, exhibiting behavior more typical of volatile growth investments than a traditional safe haven.

Analyst argues that call options on GDX, the ETF tracking mining stocks, offer better value than options on GLD because investor demand for upside options on miners has been less intense than for the metal itself. 

Individual mining companies have demonstrated strong performance this year. Newmont Corp., Agnico Eagle Mines Ltd., and Barrick Mining Corp. have all posted gains approximately double those of spot gold prices. Barrick has climbed more than 130% year-to-date despite facing challenges.

The investment carries significant risks. GDX represents a highly volatile method of participating in the dollar debasement trade, the theory that gold’s rise stems from a structural shift away from the US currency.

After dropping from nearly $4,400 an ounce less than a month ago, gold has started to recover. It has increasingly moved in tandem with equities, marking a departure from its traditional inverse relationship with stocks. This shift has occurred against a backdrop of dollar weakness concerns and sustained demand for the precious metal from central banks globally.

Tim Hayes, chief global strategist at Ned Davis Research, wrote in a report that with the selling pressure now subsiding, gold is well-positioned to continue its upward trajectory toward another round of record highs.

As reported earlier by GNCrypto, gold futures traded just under $4,430 per ounce in October 2025, heading toward the best annual performance since 1979 driven by central bank purchases, inflows into gold-backed exchange-traded funds, and bar-and-coin demand.