Gold Mining Stocks Outshine Physical Gold as Demand Soars
Gold has reached a 14-year high since 2023, but investors might be focusing on the wrong asset class. A whitepaper from Rational Equity Asset Management titled 'Beyond Bullion: Why the miners are the more profitable way to own gold's bull run' suggests that the real gains are being made in gold mining stocks.
The survey of 76 reserve managers by the World Gold Council found that 84% expect gold to make up a bigger share of global reserves in five years, up from 76% last year. China's central bank has reduced its US Treasury holdings to a 25-year low and redirected funds into bullion.
The silver market is also experiencing a shortage, with a deficit widening to 46 million ounces in 2026, marking the sixth consecutive year of supply deficits. Above-ground stockpiles have shrunk by 762 million ounces since 2021 to meet demand.
Data centers are emerging as a significant buyer of silver, with projections suggesting they could consume over 42 million ounces annually by 2027. This demand is expected to continue even if prices rise.