Gold Beats AI? This Miner Just Crushed Palantir In 2025
News Summary
Despite artificial intelligence revolutionizing the economy, gold has outshined it in 2025. Newmont Corp. (NEM), the world's largest gold producer and the only gold miner in the S&P 500, is up 105% year-to-date, surpassing AI darling Palantir Technologies Inc. (PLTR), which is up 104%. Newmont now stands as the second-best performer in the S&P 500. The article highlights valuation as a core factor, with Newmont trading at a next-12-month P/E of just 15x compared to Palantir's sky-high 212x forward P/E, making the value case for gold and Newmont compelling. Investors are increasingly bullish on gold miners, with the VanEck Gold Miners ETF (GDX) seeing $531 million in net inflows in August and gold-linked ETFs attracting $3.9 billion last week. Analysts are optimistic about the continued upside momentum for gold miners, citing a weakening U.S. dollar as a key catalyst. Despite strong performance, the gold miners-to-gold ratio remains significantly below 2011 highs, suggesting the gold cycle could still be in its early innings.
Background
In 2025, the global economy is undergoing profound changes driven by artificial intelligence innovations, with AI companies like Palantir Technologies attracting significant market attention for their growth potential. Concurrently, geopolitical risks and market uncertainties are on the rise, particularly under President Donald J. Trump's administration, whose "America First" policies could lead to trade tensions and dollar volatility, exacerbating global economic uncertainty. Against this macroeconomic backdrop, gold, as a traditional safe-haven asset, has seen its appeal significantly increase. Typically, a weakening U.S. dollar, rising inflation expectations, and geopolitical instability tend to support gold prices. Concurrently, investor concerns over richly valued growth stocks have prompted a shift of capital towards value-oriented assets with more reasonable valuations, such as gold mining companies.
In-Depth AI Insights
What broader market shifts does gold's 2025 outperformance over AI signify, particularly under the Trump administration? - This performance highlights a significant market rotation from high-growth, speculative AI sectors towards value, hard assets, and safe havens. It reflects growing investor concerns about macroeconomic uncertainty, inflationary pressures, and geopolitical risks. - Under President Trump's leadership, policies that could lead to a weaker dollar and trade frictions further enhance gold's appeal as a hedge. This suggests investors are seeking the store-of-value function of tangible assets rather than solely the future earnings potential of technological innovation. - The market may be redefining