In 2025, gold posted its best annual return in 45 years, gaining about 70%, with prices surpassing $3,100 an ounce in early 2026 before a pullback. Investors in gold miners ETFs, like VanEck Gold Miners and Junior Gold Miners, saw returns of roughly 110% and 120% respectively, about double the 52% return of physical gold tracked by the SPDR Gold Shares ETF. This difference is due to operational leverage: miners have fixed costs, so rising gold prices significantly boost their profit margins, amplifying gains but also losses. Physical gold ETFs offer stable, direct exposure, while miners ETFs provide higher risk and reward, suitable for investors with conviction in gold price rises or tactical portfolio positions.
