The 2025 Golden Stock Investment Landscape: Taiwan's Three Major Gold Trading Firms Rise and U.S. Mining Giants Advance Together

The Gold and Precious Metals Mining Sector Is Booming

Since the start of 2025, the global gold market has written a miraculous chapter. In just three months, international gold prices have hit a new high 20 times, with spot gold(XAU/USD) performing especially strongly, driving a wave of investment enthusiasm across the entire precious metals industry chain.

The logic behind this upward trend is quite clear: escalating geopolitical risks (ongoing Russia-Ukraine conflict, tense Middle East situation), U.S. policy uncertainties fueling safe-haven demand; simultaneously, the Fed’s rate cut expectations are gradually fermenting, reducing the dollar’s attractiveness, and gold’s strategic position as an alternative reserve asset is rising; most importantly, global central banks are ramping up gold purchases, with official gold buying surpassing 1,000 tons for the third consecutive year in 2024, while limited mineral supply and declining recycling volumes are widening the supply-demand gap.

In the short term, the market has experienced intense volatility: in the first eight trading days before April 22, COMEX gold futures surged by $430, a 15% increase, breaking the psychological barrier of $3,500/oz for the first time, then rapidly retraced. Nevertheless, mainstream investment institutions remain cautiously optimistic, believing that the de-dollarization wave combined with long-term geopolitical safe-haven demand will provide solid support for gold’s long-term price.

Earnings Mechanisms of Major U.S. Mining Giants

The logic of investing in gold concept stocks essentially amplifies gold price increases through the leverage effect of listed companies. From January 22 to now, Canadian mining giant Agnico Eagle(AEM) has gained 42%; South Africa’s established miner DRDGold(DRD) has soared 57%; tracking spot gold prices, SPDR Gold ETF(GLD) has returned nearly 20%. Behind these figures is the exponential growth in profitability of mining companies driven by rising gold prices.

Barrick Gold(GOLD)——The World’s Largest Gold Producer

Founded in 1983, Barrick Gold has a market capitalization of over $27 billion and owns 16 mining sites across 13 countries. In Q1 2025, gold production reached 758,000 ounces, with revenue of $3.13 billion, up 13.8% year-over-year. Although production declined from 940,000 ounces in the same period last year, the gold price surged to $2,898 per ounce (from $2,075 last year), resulting in an adjusted EPS of $0.35, surpassing market expectations of $0.30. The company maintains its full-year 2025 production target of 3.15 to 3.5 million ounces.

Newmont(NEM)——The Only Gold Mining Company in the S&P 500

As the world’s largest gold producer, Newmont provides stability during market uncertainties. In Q1 2025, net profit was $1.9 billion, nearly 11 times higher than the same period last year, with EPS of $1.68, and an adjusted EPS of $1.25, well above the market forecast of $0.9. Gold production for the quarter was 1.54 million ounces (down 8.3% YoY), but the gold price soared to a record high of $2,944 per ounce (up 41% YoY), driving strong profit growth.

Wheaton Precious Metals(WPM)——Alternative Investment Strategy

Unlike traditional mining companies, Wheaton Precious Metals, established in 2004, is a Canadian streaming company that signs “precious metal purchase agreements” with global mines, buying part or all of their physical metal production at discounted prices. In Q1 2025, EPS was $0.55, exceeding expectations of $0.52; revenue surpassed $470 million, 13% higher than the analyst estimate of $417 million. Consequently, Royal Bank of Canada raised its target stock price from $75 to $80.

Kinross Gold(KGC)——Regional Diversification

Kinross Gold, a professional precious metals mining company, mainly operates gold mining and processing, with silver production as a byproduct, across the Americas, Russia, and West Africa. In Q1 2025, free cash flow doubled compared to last year, and the company announced a $650 million shareholder capital return plan for 2025. Gold equivalent production reached 512,088 ounces, with a per-ounce sales margin profit soaring 67% YoY to $1,814, demonstrating strong financial health.

Rise of Taiwan’s Top Three Gold Distributors

Taiwan’s gold concept stocks are relatively few, but representative companies perform remarkably.

Koyo Electronics(1785)——Mainstream in Precious Metal Recycling and Circular Economy

Founded in 1978, it is a leading manufacturer in Taiwan’s precious and rare metal recycling and processing industry. In Q1 2025, revenue was NT$8.243 billion, up 30.6% YoY, mainly benefiting from rising precious metal prices and expansion in semiconductor target materials. Gross profit was NT$1.219 billion, up 70.6%; operating profit NT$839 million, up 145%. Non-precious metal processing services(VAS) have become the main profit source. Despite this, due to volatile precious metal prices affecting hedging operations, net profit attributable to the parent dropped to NT$358 million, down 44.75% QoQ, with basic EPS of NT$0.6. Over the past year, share price increased by 26.5%, dividend yield 3.52%.

Jin Yi Ding(8390)——Leader in Metal Resource Recycling

Founded in 1997, a major metal resource recycling company in Taiwan. Precious metal recycling (including gold) accounts for 30% of revenue, copper and industrial metals for 50%. Benefiting from TSMC’s supply chain expansion, rising precious metal prices, and the turnaround of its Yunnan subsidiary Rongding Metals, Jin Yi Ding performed strongly in Q1 2025. Revenue was NT$1.106 billion, gross profit NT$188 million, operating profit NT$126 million, pre-tax profit NT$145 million, net profit attributable to the parent NT$117 million, with basic EPS of NT$1.22. Over the past year, share price increased by 7.7%, dividend yield 3.96%.

Jialong(9955)——Expert in Precious Metal Refining

Founded in 1996, a Taiwanese precious metal refining company, with about 90% of revenue from metal sales. Due to ongoing losses, it has not paid dividends for 10 consecutive years. In 2025, benefiting from rising global precious metal prices and recovering semiconductor demand, Q1 revenue was about NT$320 million, up approximately 12% YoY, mainly from increased orders in semiconductor and optoelectronic waste processing; gross profit was NT$65 million, with a gross margin around 20%; net profit after tax was NT$35 million, EPS about NT$0.38, up about 8% YoY. Over the past year, share price declined by 6.5%.

Key Drivers of Gold Mining Company Stock Prices

Gold Price Fluctuations Are the Primary Variable

This is the most direct influence. According to the latest World Gold Council report, in Q1 2025, global gold demand reached 1,206 tons, a slight increase of 1% YoY, the highest level since 2016 for the same period. Goldman Sachs forecasts gold prices could rise to $3,700/oz by the end of 2025, with extreme cases reaching $4,500; UBS maintains a target of $3,500 and has raised its annual net inflow forecast for gold ETFs to 450 tons.

When gold prices rise, mining and sales companies see increased revenue and profits, and their stock prices tend to rise accordingly. Historical data shows that gold concept stocks often outperform the gold price itself.

Economic Uncertainty and Safe-Haven Demand

Risks of recession, political turmoil, and other factors trigger risk aversion, prompting capital flows into safe-haven assets. During such times, demand for gold surges, benefiting mining companies through rising volume and prices.

Monetary Policy and Interest Rate Environment

Low interest rates reduce the holding costs of gold, increasing its investment appeal. Conversely, rate hikes by central banks exert downward pressure on gold prices, indirectly impacting mining stocks.

Production Costs and Operational Efficiency

Changes in labor, energy, and environmental costs directly affect corporate profitability. Technological advances or management improvements can lower costs and enhance profitability.

Global Supply and Demand Dynamics

The balance between mineral gold output, recycling volume, and industrial/investment demand determines price trends. Limited supply coupled with rising demand often creates a double benefit.

Comparing the Three Main Ways to Invest in Gold

Direct Gold Holding: Requires consideration of storage costs and security issues. Most investors choose gold ETFs(like GLD, GDX, GDXJ). Gold ETFs are relatively low risk, with stable gold value and global recognition, but offer moderate returns.

Gold Concept Stocks: Higher risk and reward than gold itself. Besides gold prices, company operations and profitability also influence stock prices. When gold rises, related companies’ stocks often outperform.

Gold Industry Funds: GDX(VanEck Gold Miners ETF) and GDXJ(Small-Cap Gold Miners ETF) offer diversified investment options. GDX leans toward large companies(with Newmont accounting for 12.05%), GDXJ toward small-cap companies(with AGI.TO at 7.05%). Over the past year, returns were 29.92% and 32.59%, respectively.

Opportunities and Risks of Investing in Gold Stocks

Opportunities: Gold is a safe-haven asset that tends to rise during economic instability, preserving value and hedging against currency depreciation. Gold concept stocks benefit from amplification effects, often with larger gains. Including gold stocks in asset allocation can diversify risk; they tend to perform steadily when cyclical stocks decline.

Risks: Volatility is much higher than gold itself. From April to October 2022, gold prices fell 15%, but gold concept stocks declined by 38%. Different companies face management risks, including controlling production costs, operational efficiency, and regulatory compliance, and financial difficulties could lead to investment losses.

Future Outlook: Three Key Trends to Watch

Long-term Gold Price Support Remains Solid: Although short-term corrections may occur due to optimistic trade sentiment or risk appetite, ongoing tensions in Russia-Ukraine, Middle East, and U.S.-China trade negotiations continue to support safe-haven demand, maintaining long-term upward momentum.

Mining Companies Expanding Capacity Investment: High gold prices stimulate global mining companies to expand capacity in resource-rich regions(Africa, Australia, South America). The global gold mining industry is expected to grow steadily from 2025 to 2030, with Asia and North America as major growth markets.

Technology Empowering the Mining Industry: AI and big data are revolutionizing the entire gold mining process, from exploration to production, improving efficiency. In 2024, mining companies invested $218 million in AI, and technological advances will further enhance profitability.

Overall, against the backdrop of increasing global economic and geopolitical uncertainties, gold concept stocks undoubtedly become a key investment direction in the capital markets. Taiwan’s top three gold distributors(Koyo Electronics, Jin Yi Ding, Jialong)and major U.S. mining giants(Barrick Gold, Newmont, Wheaton)are progressing in tandem, offering investors abundant choices. By grasping industry development trends and adopting prudent investment strategies, steady gains can be achieved in this field.