Venture: Gold Miners

Issue 129;

The price of gold has retreated this year 25% from its peak in January at $5,417. Having been heavily overbought since that time, it is now oversold and has found support at the $4,000 level, last seen during the October 2025 correction.

Gold versus Equities

Source: Bloomberg

As the price has fallen, there have been outflows from the ETFs, and some central banks such as Turkey, Russia and Azerbaijan have sold. Yet, collectively, the central banks have remained buyers, especially China.

Central Bank Gold Purchases

Source: Bloomberg

The gold miners have held up well throughout this correction, which bodes well. Even at $4,000, they are highly profitable companies, and as gold recovers, they are likely to continue to outperform gold.

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Gold versus Gold Miners

Source: Bloomberg

Checking in on silver, it too is oversold, having corrected by 45%, falling from $116 to $63. Yet it remains rich versus gold. Silver could well outperform gold from here, but no longer offers the relative value that it has in recent years.

Gold versus silver

Source: Bloomberg

Finally, I compare silver to the gold miners. Their performance has been remarkably similar, with neck-and-neck moves in recent years. Yet the purple relative line shows how spot silver remains elevated compared to the miners, unlike 2020 and mid-2025, where the relative value favoured silver. This means the gold and silver miners likely offer better relative value than spot silver.

Silver versus the Gold Miners

Source: Bloomberg

With greater confidence that gold and silver have made an important low, this week we add two gold and silver miners to the Venture Portfolio.

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