Gold Is Now Outperforming Stocks and Bonds
Congratulations, gold bugs, your long, painful wait is ending.
In a recent post by John Rubino on his Substack, gold's breakout performance over stocks and bonds has been highlighted as one of the most important shifts unfolding in global markets. For long-term gold investors who’ve waited patiently for this moment, the data is finally confirming what many predicted: gold is now outperforming stocks and bonds across rolling three-year periods, a key metric closely followed by institutional and retail investors alike.
Recent data confirms that gold’s annualized returns have surpassed both equities and fixed income - a major turning point that is fueling fresh waves of interest across the precious metals sector.
What's even more striking is gold's resilience. It has held firm through its seasonally weak May-June window, defying the traditional "Sell in May" narrative that often weighs on commodity markets during this period.
Miners Reap the Benefits
Rising bullion prices are transforming gold miners' balance sheets. Revenues are outpacing costs at an accelerating rate, sending profit margins to multi-year highs. With gold trading near $3,300/oz, miners are generating healthy cash flow that allows for significant reinvestment - spurring equipment upgrades, new mine developments, and a major uptick in mergers and acquisitions activity.For example, Agnico Eagle Mines has doubled earnings year-over-year and significantly reduced its debt load, while its share price has surged since early 2024.
Silver: Poised for Catch-Up
The gold-to-silver ratio recently climbed to levels above 97:1, a historically extreme reading that often precedes sharp reversals favoring silver. Historically, ratios above 90 signal that silver may be ready to outperform, with many investors now watching closely as silver tests major resistance near $35/oz.Forecasts suggest silver could hit $38 by Q4 2025, with some analysts forecasting as high as $50 under bullish scenarios. The combination of growing industrial demand (solar, EVs, electronics) and tight global supplies makes silver’s setup especially compelling.
What’s Driving the Precious Metals Bull Market?
Several key macro forces are driving this powerful move:- Central bank buying remains strong, with global banks purchasing roughly 80 tons of gold monthly as part of reserve diversification.
What It Means for Investors
For everyday investors, this precious metals rally carries several important takeaways:Gold’s renewed strength confirms its role not just as a hedge but as a core portfolio asset during times of fiscal uncertainty. Meanwhile, mining companies, benefiting from surging margins and expanded capex budgets, offer leveraged exposure to rising metal prices. And silver, historically known for its sharp, aggressive rallies once momentum builds, may be in the early stages of its own breakout.
Bottom Line
Gold has firmly outpaced stocks and bonds, offering protection and strong returns in an increasingly fragile global financial system. Mining companies are capitalizing on the favorable environment, while silver’s setup is becoming harder to ignore. With major institutional money now flowing into the sector, 2025 could mark the beginning of one of the most significant precious metals bull markets since the 1970s.For more on this trend, you can read John Rubino’s full post here:👉 Gold Is Outperforming Stocks and Bonds (Rubino Substack)
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