Gold miners have been the blockbuster gainers of 2025, outperforming all other industries as precious metal prices spiked to record highs – yet Wall Street analysts contend that the explosive rally may still be in its early innings.

Newmont Corp. ( NEM ) , the world's largest gold producer, has soared more than 140% year to date, making it one of the top three gainers in the S&P 500 this year.

Only Robinhood Markets Inc. ( HOOD ) and Seagate Technology Holdings Plc ( STX ) have done better, with respective gains of 260% and 150%.

Backing the broad rally in gold miners is the VanEck Gold Miners ETF ( GDX ) , which has surged 121% since January — its best annual performance since launching in 2006.

This comes as spot gold surged above $4,000 per ounce, shattering previous all-time highs amid a backdrop of monetary debasement fears, rising geopolitical tensions and continued central bank accumulation.

Chart: Gold Miners Left S&P 500 In The Dust This Year

BlackRock: ‘Margins Are As Fantastic As I’ve Ever Seen’

Despite these jaw-dropping gains, Evy Hambro, global head of thematic and sector investing at BlackRock, believes the sector has room to run.

In an interview with Bloomberg on Monday, Hambro said the earnings power of gold miners is being significantly underestimated.

"These companies are earning enormous margins," Hambro said. “How could they possibly be cheap?' That's staggering — they've never been cheaper than they are right now."

Hambro pointed to the disconnect between spot gold prices and long-term price assumptions used by analysts.

Most models are still based on gold at $2,200 to $2,400 — a full 20% below current spot prices and up to 50% below the futures curve.

"That's a massive, massive difference," he said, noting that if prices hold even near current levels for the next 12 to 24 months, gold producers could "over-earn relative to expectations."

‘The Trend Is Your Friend’ — Why Momentum Still Matters

Hambro noted that while volatility remains — particularly from speculators and fluctuations in physical markets, such as silver — the broader trend in gold is being supported by long-term shifts.

"We're actually repricing paper currency relative to real assets," he said, pointing to the growing skepticism about fiat money and monetary policy across global economies.

He added that while gold has preserved purchasing power for basic goods like fast food, it still lags behind for major items such as real estate in Manhattan or a Ford F-150 truck.

That suggests the metal may still be undervalued from a macro perspective.

"We've got this enormous trend that's been with us now since the 1950s — the overprinting of paper currency," Hambro said.

"Eventually, these things get to tipping points. And maybe we're seeing a change in some of these real assets."

Are Gold Stocks Still A Buy?

Valuation metrics support Hambro's thesis.

Despite triple-digit stock gains, the price-to-earnings ratios of several major miners remain well below their historical averages. Free cash flow is also soaring, enabling companies to raise dividends and accelerate buybacks.

Still, investors should be cautious. Gold has historically been a volatile asset, and previous bull runs have often ended with sharp reversals. Yet Hambro believes this cycle might be different.

"This is probably bigger than a cycle," he said. "The trend is your friend in this environment."

As gold continues to redefine its role as a hedge against financial uncertainty, miners like Newmont ( NEM ) could remain in the spotlight — not just for what they’ve already done, but for what might still lie ahead.

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