Gold ETFs and Miners Dominate 2025 Investment Landscape as Precious Metals Soar
Gold-backed funds and mining equities dominated the top-performing investment strategies in 2025, with all ten leading UK funds tracked by Morningstar Direct tied to precious metals. The Franklin Gold and Precious Metals Fund led the pack with a staggering 184.33% return, followed closely by peers like the SVS Baker Steel Gold and Precious Metals Fund (173.47%) and Schroder International Selection Fund Global Gold (169.15%).
The rally coincided with gold's unprecedented 60% surge to over $4,300 per troy ounce, while silver breached $60/oz in December. Market analysts attribute the boom to a confluence of factors: escalating geopolitical tensions, accelerating de-dollarization by central banks, stubborn inflation, and retail investor FOMO. "The gold rush shows no signs of slowing," noted AJ Bell's Laith Khalaf, adding that impending rate cuts could further buoy demand.
