UBS Analysts Bullish on Gold Mining Stocks—Here’s Why

Gold miners catch a break as UBS throws its weight behind the sector. Could this be the lifeline investors need—or just another Wall Street hype cycle?

The Glittering Case for Gold Stocks

UBS analysts are doubling down on gold mining equities, citing resilient demand and tightening supply. No fluffy jargon—just a rare nod to a sector that’s been left for dead by crypto-obsessed traders.

Wall Street’s Golden (Selective) Memory

Funny how traditional finance rediscovers gold every time Bitcoin dips below $30K. Miners might be a hedge, but let’s not pretend this isn’t partly fueled by fear of missing the next rally.

Bottom line? Gold’s back on the menu—at least until the next shiny decentralized asset steals its thunder.

Key Takeaways

• UBS analysts tell clients they're upbeat about gold mining stocks.
• The analysts note shares of gold miners have outperformed the price of gold this year.
• However, UBS said to be selective in choosing which gold mining stocks to invest in.

Gold mining stocks are getting a positive review from UBS.

The analysts wrote in a note to clients that miners are enjoying "some time in the sunshine," and that after a "poor track record in recent years," they're starting to rebuild investor confidence and trust.

UBS noted that while Gold prices have been range-bound over the past three months, the VanEck Gold Miners ETF has outperformed the price of gold by 15%, and it's outperformed gold by more than 40% year-to-date.

The analysts said if gold prices remain steady, they see gold mining firms increasing stock buybacks this year, accelerating organic growth projects, and potentially taking part in more merger and acquisition activity.

However, despite their optimism, they explained that they have "become more selective shifting preference from 'relatively expensive outperformers' to some of the 'cheaper turnaround stories.'" UBS's top gold mining stocks are Barrick Mining (B), Endeavour Silver (EXK), Kinross Gold (KGC), AngloGold Ashanti (AU), and Franco-Nevada (FNV).

The VanEck Gold Miners ETF is trading at its highest level since November 2011. 

TradingView