Last year, gold prices surged 64%, outperforming the returns of all major U.S. stock indices. Gold prices have continued to climb this year, hitting an all-time high of $5,400 per ounce in January, but have since pulled back and were hovering around $4,500 per ounce at the time of this writing.
Apart from global governments and central banks, most demand for gold comes from investors who use the precious metal to hedge against economic and political uncertainty. While many investors still buy physical gold, exchange-traded funds like the SPDR Gold Shares ETF (GLD) may be a cheaper and more convenient option.
While conditions for further gold gains seem perfect, investors should manage their expectations, as an annual return of over 60% is not normal. In fact, over the past 50 years, gold has delivered an average annual return of just 7.5%, below the 11.6% annual return of the S&P 500 over the same period.
That said, this doesn’t mean ignoring gold altogether—rather, it means investors should diversify their allocations. Gold tends to perform well when economic or political turmoil drives a global rush to safe-haven assets, which often coincides with periods of the most intense stock market volatility. Therefore, adding a small amount of gold to an equity portfolio can be highly beneficial.
Buying the SPDR Gold Shares ETF is a good alternative to purchasing physical gold. It directly tracks the performance of gold and can be bought or sold instantly on any major investment platform. Its 0.4% expense ratio means a $10,000 investment generates only $40 in fees per year, which is much cheaper than storing and insuring an equivalent amount of physical gold.
Newmont (NEM) is the world’s largest gold company, with a vast portfolio that includes copper, silver, zinc, and lead. It operates active mines in nine countries, diversified across significant assets in Africa, Australia, North America, and elsewhere. In fiscal year 2025, Newmont’s sales grew 21% to $22.7 million, with net income of $7.1 billion. Its balance sheet as of December 2025 shows a debt-to-equity ratio of approximately 0.2 times and a current ratio of about 2.3 times, with free cash flow as high as $7.3 billion.
SSR Mining (SSRM) is a mid-tier gold producer with core mining operations in the United States, Canada, and Argentina. Key mines include Marigold in Nevada and Puna in Argentina. The company has high customer concentration, with sales to the Canadian Imperial Bank of Commerce (CM) accounting for approximately 33% of 2025 revenue. In fiscal year 2025, SSR’s revenue soared 66.5% to nearly $1.7 billion, with net income of nearly $402.7 million. As of December 2025, its debt-to-equity ratio stood at about 0.1 times, its current ratio was close to 2.1 times, and free cash flow was nearly $245.9 million.
