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Gold shares have been among the many strongest-performing UK shares in 2025. Gold costs have surged 52% within the yr up to now. And there’s good motive to count on bullion values to maintain on climbing.
Right here’s why I believe gold mining shares stay prime corporations to contemplate.
Gold worth growth
Demand for the dear metallic is rocketing as buyers seek for secure havens. Certainly, newest information from the World Gold Council (WGC) reveals that gold demand is reaching unprecedented ranges.
The organisation says that gold buying and selling volumes averaged a whopping $388bn in September. This determine — which measures liquidity in futures, exchange-traded funds (ETFs) and over-the-counter (OTC) markets — represented a 34% month-on-month enhance.
The WGC additionally says gold ETF inflows in September reached their highest month-to-month degree on file. Fund holdings elevated by 146 tonnes, considerably above the 53 tonnes recorded in August.
ETFs now maintain 3,838 tonnes of the yellow metallic. That’s fractionally beneath the all-time summit of three,929 tonnes held in November 2020.
Wanting good
There’s no assure that gold costs will proceed rising, in fact. However bullion demand continues to bubble and new file costs have been touched in October. As I kind, it’s at recent peaks inside a whisker of $4,000 per ounce.
A push by way of this technically and psychologically vital degree may pave the way in which for additional hefty beneficial properties. Vital elements that would drive gold by way of this degree embrace rising inflation, financial turbulence, rate of interest cuts, and worsening geopolitical tensions.
Political and financial turbulence within the US — on points starting from commerce tariffs and central financial institution independence, to extra lately authorities shutdowns — are additionally portray a vibrant image for secure havens like gold.
A prime gold share
I’ve purchased shares within the L&G Gold Mining ETF to capitalise on this upswing. The fund — which holds a basket of 37 mining shares — has proved a profitable purchase for me, rising 79% in worth since I opened a place in early April.
I’m contemplating rising my publicity to gold shares additional by buying Endeavour Mining (LSE:EDV). It’s risen an much more spectacular 112% since 1 January.
Shopping for a person share like that is extra dangerous than holding a basket of them with an ETF. Metals mining’s a notoriously unpredictable enterprise, and issues on the exploration, venture improvement and manufacturing phases can hammer earnings.
With my L&G ETF, these dangers are properly unfold out. Nonetheless, as Endeavour’s robust efficiency in 2025 reveals, the potential for outsized returns will be larger with particular person shares. Within the case of this FTSE 100 share, costs have been boosted by surging output (up 38% within the first half), robust margins, and strong money flows which have led to dividend hikes and share buybacks.
A pointy pullback in gold costs may pull costs of mining shares akin to Endeavour sharply decrease. However with gold’s multi-year bull run accelerating, I believe rising the variety of gold shares in my portfolio is value severe consideration.
