Gold and Silver Prices Soar, Boosting Mining Companies’ Stocks
The prices of precious metals, including gold and silver, have witnessed a remarkable surge in 2025, with gold rising by 48% and silver advancing by an impressive 66%. This upward trend has significantly impacted mining companies’ stocks, which have seen gains exceeding 100% this year.
Key Players in the Mining Sector
Prominent mining companies have experienced substantial stock growth. In Mexico, Peñoles, owned by Grupo BAL, has seen its shares soar 199.81%, currently trading at 798.10 pesos per unit. Carlos Slim’s Minera Frisco has also performed well, with a 122.81% increase and a current share price of 7.62 pesos.
Mexico’s largest mining company, Grupo México, has not been left behind, with its stocks rising 62.55% to 100.08 pesos per action. Fresnillo, a subsidiary of Peñoles, has seen its shares climb 272.33% to 2.31 British pounds on the London Stock Exchange.
Across the Atlantic, Anglo Gold Ashanti has surged 217.68%, Kinross Gold is up by 170% to $25, and Newmont Gold has risen 133.37% to $86 on Wall Street.
Canadian copper miners have also reported gains on the Toronto Stock Exchange, though below 100% in terms of stock advancements. First Quantum Minerals has gained 74.53%, Hudbay Minerals 88.34%, and Ero Copper 55.39%.
Factors Driving the Precious Metals Rally
Mauricio Brocado, head of Equity Research at Nuclo Wealth Management, identified three key factors driving the positive results:
- Inflation Concerns in the U.S. – The rise in tariffs by the Trump administration and trade disputes have fueled inflation worries, along with labor shortages caused by immigration policies.
- Geopolitical Issues – Ongoing conflicts, such as those in the Middle East and Russia’s invasion of Ukraine, have contributed to market uncertainty.
- Weakening U.S. Dollar – Recent weakness in the dollar, driven by U.S. policies and the threat of a government shutdown, has further boosted investor interest in precious metals.
Felipe Mendoza, an analyst at ATFX LATAM’s Mercados Financieros, emphasized that investor expectations play a crucial role in the mining sector’s performance. The rise in raw material prices has led to increased profit projections for mining companies, driving investor interest in their stocks.
Experts predict that metal prices, including those mined by these companies, will continue to rise.
Precious Metals Continue to Climb
In 2025, precious and industrial metals on the Chicago Stock Exchange have experienced double-digit increases. Gold has climbed above $3,800 per ounce, driving up the value of associated mining stocks. Currently priced at $3,886.83 per ounce, gold has seen a 48.14% year-to-date increase and broken several historical highs in recent weeks.
Silver has performed even better, with a 66.23% rise and a current price of $48 per ounce. Copper has increased by 26.72% to $5.10, platinum by 82.14% to $1,658, and palladium by 42.53% to $1,296.
Analysts from Monex Casa de Bolsa noted that gold’s upward trend has reached new historical highs, driven by growing demand for safe-haven assets amidst U.S. political uncertainty.
The weak dollar, combined with the possibility of a federal government shutdown, has intensified investor appetite for precious metals. Investors anticipate that the Federal Reserve will either maintain or accelerate its rate-cutting cycle in October.
Gold-backed ETF flows have reached unseen levels since 2022, reflecting strong confidence in gold. Meanwhile, silver, platinum, and palladium have also seen significant gains, backed by a notable scarcity in the physical market.
Key Questions and Answers
- What is driving the surge in mining stocks? The rally of precious metals, including gold and silver, has significantly boosted mining companies’ stocks. Factors such as inflation concerns in the U.S., geopolitical issues, and a weakening U.S. dollar have contributed to this trend.
- Which mining companies are experiencing the most growth? Notable gainers include Peñoles (199.81%), Minera Frisco (122.81%), and Grupo México (62.55%) in Mexico, as well as Anglo Gold Ashanti (217.68%), Kinross Gold (170%), and Newmont Gold (133.37%) on Wall Street.
- Why are investors favoring precious metals? Investors are drawn to precious metals due to growing demand for safe-haven assets amidst political uncertainty and a weakening U.S. dollar.
- What are analysts predicting for metal prices? Experts anticipate that the prices of various precious and industrial metals will continue to rise.
