Now miners outdo metal

Rising geopolitical tensions see investors turn to safe-haven assets.

- Maboko Seabi

Gold, long viewed as the ultimate hedge in times of uncertainty, is experiencing renewed demand. But this time, the spotlight might be shifting beyond the metal to the companies that mine it.

In July 2024, we explored this phenomenon in the article "A safe haven through history's storm," highlighting how gold miners are benefiting from the gold price surge.

This trend raises a critical question: In today's climate of volatility and instability, is investing in gold sufficient, or do gold miners now offer a superior return potential?

Across global markets, major indices have come under pressure as investors grapple with rising interest rates, weakening economic data, and heightened tensions.

Traditional financial assets such as bonds and cyclical stocks have failed to provide a reliable buffer.

In this environment of broad-based weakness, gold has reasserted its role as a defensive asset.