No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Wednesday, October 8, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

You’ve heard that gold is hitting record highs. Not quite, BofA says

by TheAdviserMagazine
3 weeks ago
in Business
Reading Time: 24 mins read
A A
You’ve heard that gold is hitting record highs. Not quite, BofA says
Share on FacebookShare on TwitterShare on LInkedIn


Gold prices have indeed soared to all-time highs in 2025, prompting headlines about a historic rally. But according to Bank of America (BofA) Global Research, the story is more nuanced: The gold sector, while booming, hasn’t returned to all of the metrics that defined previous cyclical peaks, especially regarding its value relative to the broader equity market and its own historical valuations.

This year, gold surged past major thresholds, as the traditional hedge against inflation and macroeconomic uncertainty has been propelled by a preponderance of both. On September 2, gold shot past $3,500/oz, climbing further to $3,600/oz on the Monday following the disappointing U.S. jobs data for August, which raised bets on easier monetary policy. The BofA Commodities team is “bullish,” they say, now forecasting the quarterly average price reaching $4,000/oz in the second quarter of 2026, with the spot price already up 4.1% week-over-week to $3,589/oz.

Rob Haworth, senior investment strategist at U.S. Bank Wealth Management, told Fortune in March that gold may be a good investment for some but it’s not exactly liquid. “You’re not sending gold to buy your Domino’s pizza,” he said, adding that gold’s rally in recent years has been driven by central banks buying the precious metal as the U.S. dollar weakens and countries like China seek alternatives.  

Here’s why Bank of America says perspective is important in evaluating gold’s record high, and it depends on how you look at it.

Sector market cap doubling past peaks, but …

The global gold sector’s total market capitalization has ballooned to just over $550 billion, nearly twice the peaks seen in 2011 and 2020 ($331-$334 billion), more than 8x the 2016 cycle low ($70 billion), and more than 3x the recent cycle low of $170 billion in 2022. This rally, according to BofA, reflects not just price gains. but also investor interest heightened by inflation and sector cost pressures.

Yet, when viewed as a share of the total global equity market, gold’s ascent looks less dramatic and it’s “far below” its previous highs, the Commodities team says. The sector now stands at 0.39% of world market capitalization, matching the 2020 peak but still far below 2011’s high of 0.71%. If the sector returned to that 2011 percentage, it would imply a market cap of nearly $990 billion—a potential upside only if the cycle continues long enough.

Room to run

Despite high metal prices, gold equities are not trading at historical top valuations. The sector’s next-12-month (NTM) EV/EBITDA multiple sits at 11x, well below the 2020 peak of 15.4x. Price-to-net-asset-value (P/NAV) for the sector rests at 1.88x, compared to 2.27x in 2020 and 2.19x in 2011. Adjusted for current spot gold prices, sector multiples suggest even further upside, with NTM EV/EBITDA at 11.7x and P/NAV at 1.39x.

Gold equities have responded to the price rally, but not uniformly. Major indices such as the S&P/TSX Global Gold Index (+5.5% WoW), Philadelphia Gold and Silver Index (+4.8%), and NYSE Arca Gold Bugs Index (+4.1%) all surged alongside bullion’s breakout. Year-to-date, Fresnillo is the best performer, climbing over 268%, spotlighting disparate returns in the sector.

BofA’s research points to room for growth—if current trends in monetary policy, inflation, and investor sentiment persist. However, the gold sector remains a small slice of the global equity pie, with equity valuations still well below historical highs. For market observers, the surging price of gold is only part of the story; the fundamentals suggest this boom is not yet a rerun of previous peaks, and “record highs” should be viewed in context.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. 

Fortune Global Forum returns Oct. 26–27, 2025 in Riyadh. CEOs and global leaders will gather for a dynamic, invitation-only event shaping the future of business. Apply for an invitation.



Source link

Tags: BofAGoldHeardhighshittingrecordYouve
ShareTweetShare
Previous Post

The Measurement is Not the Thing

Next Post

5 Car Insurers Losing a Bunch of Customers — and 5 Companies They Switch To

Related Posts

edit post
YZi Labs Unveils  Billion Fund for BNB Chain Projects with Up to 0K Per Team

YZi Labs Unveils $1 Billion Fund for BNB Chain Projects with Up to $500K Per Team

by TheAdviserMagazine
October 8, 2025
0

YZi Labs, the venture capital firm founded by Changpeng “CZ” Zhao and Yi He, has announced a $1 billion Most...

edit post
American Eagle CEO defends Sydney Sweeney campaign: ‘You can’t run from fear. We stand behind what we did’

American Eagle CEO defends Sydney Sweeney campaign: ‘You can’t run from fear. We stand behind what we did’

by TheAdviserMagazine
October 8, 2025
0

American Eagle CEO Jay Schottenstein has launched a vigorous defense of his company’s high-profile Sydney Sweeney campaign, insisting the brand...

edit post
Elbit Systems bids to upgrade Argentinian F-16s

Elbit Systems bids to upgrade Argentinian F-16s

by TheAdviserMagazine
October 8, 2025
0

Argentina bought 24 F-16 aircraft from Denmark, and Elbit Systems is reportedly in talks to participate in the work of...

edit post
Ørsted raises .35bn through rights issue

Ørsted raises $9.35bn through rights issue

by TheAdviserMagazine
October 8, 2025
0

Ørsted has raised DKr59.56bn ($9.35bn) through a rights issue to strengthen its capital structure and support ongoing projects. This rights...

edit post
Nifty may resume uptrend soon; IT stocks could see short-term gains: Rohit Srivastava

Nifty may resume uptrend soon; IT stocks could see short-term gains: Rohit Srivastava

by TheAdviserMagazine
October 8, 2025
0

After a volatile few sessions, the market’s recent pullback is likely just a pause before the next leg higher, according...

edit post
Israeli drone co UVision in 2m deal with US Army

Israeli drone co UVision in $982m deal with US Army

by TheAdviserMagazine
October 8, 2025
0

US company Mistral Inc. and Israeli company UVision have announced a $982 million deal to supply suicide drones to...

Next Post
edit post
5 Car Insurers Losing a Bunch of Customers — and 5 Companies They Switch To

5 Car Insurers Losing a Bunch of Customers — and 5 Companies They Switch To

edit post
KIND Kids Chewy Chocolate Chip Bars (99 count) only .99 shipped!

KIND Kids Chewy Chocolate Chip Bars (99 count) only $19.99 shipped!

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
Tips to Apply for Mental Health SSDI Without Therapy

Tips to Apply for Mental Health SSDI Without Therapy

September 19, 2025
edit post
STZ Q2 2026 Earnings Call: Listen Live and Follow Along with the Real-Time Transcript

STZ Q2 2026 Earnings Call: Listen Live and Follow Along with the Real-Time Transcript

0
edit post
Israeli drone co UVision in 2m deal with US Army

Israeli drone co UVision in $982m deal with US Army

0
edit post
Merkel Blames COVID For Ukraine War

Merkel Blames COVID For Ukraine War

0
edit post
New Yorkers Gain Access to Crypto Staking as Coinbase Secures State Approval

New Yorkers Gain Access to Crypto Staking as Coinbase Secures State Approval

0
edit post
Embracing Technology Without Overwhelm: Tips for Digital Confidence in Later Life

Embracing Technology Without Overwhelm: Tips for Digital Confidence in Later Life

0
edit post
YZi Labs Unveils  Billion Fund for BNB Chain Projects with Up to 0K Per Team

YZi Labs Unveils $1 Billion Fund for BNB Chain Projects with Up to $500K Per Team

0
edit post
New Yorkers Gain Access to Crypto Staking as Coinbase Secures State Approval

New Yorkers Gain Access to Crypto Staking as Coinbase Secures State Approval

October 8, 2025
edit post
YZi Labs Unveils  Billion Fund for BNB Chain Projects with Up to 0K Per Team

YZi Labs Unveils $1 Billion Fund for BNB Chain Projects with Up to $500K Per Team

October 8, 2025
edit post
American Eagle CEO defends Sydney Sweeney campaign: ‘You can’t run from fear. We stand behind what we did’

American Eagle CEO defends Sydney Sweeney campaign: ‘You can’t run from fear. We stand behind what we did’

October 8, 2025
edit post
XRP Price Targets You Need To Know Now: Cubic Analytics

XRP Price Targets You Need To Know Now: Cubic Analytics

October 8, 2025
edit post
Elbit Systems bids to upgrade Argentinian F-16s

Elbit Systems bids to upgrade Argentinian F-16s

October 8, 2025
edit post
Ørsted raises .35bn through rights issue

Ørsted raises $9.35bn through rights issue

October 8, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • New Yorkers Gain Access to Crypto Staking as Coinbase Secures State Approval
  • YZi Labs Unveils $1 Billion Fund for BNB Chain Projects with Up to $500K Per Team
  • American Eagle CEO defends Sydney Sweeney campaign: ‘You can’t run from fear. We stand behind what we did’
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.