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Additional Reading from MarketBeat.com Best Way to Invest in Gold Right Now—What Smart Money Is DoingWritten by Jeffrey Neal Johnson. Published 10/23/2025. 
Key Points - Gold's long-term strength is driven by massive central bank buying and its re-emergence as a hedge against currency debasement.
- Physically-backed gold ETFs offer investors a straightforward and liquid way to gain direct exposure to the price of the precious metal.
- Investing in leading gold mining companies provides the potential for leveraged returns that can amplify gains in a rising gold price environment.
Gold and gold-sector stocks have delivered a historic performance in 2025, with prices surging more than 55% year-to-date and blowing past $4,300 per ounce in a rally that captured global attention. But after a breathtaking run, the market has taken a sharp pause. The recent pullback has left investors at a crossroads: has the bull run ended, or is this simply a strategic pause in a larger move? Evidence suggests the forces behind gold are more durable than a series of headline-driven spikes. A profound shift is underway — a Great Debasement trade — in which gold is re-emerging as a key monetary asset in an uncertain world. For investors who recognize this new reality, the current correction looks more like an opportunity than a warning. The Why: A Structural Shift to Hard Assets At the heart of gold's renewed strength is the concept of currency debasement — the steady erosion of a currency's purchasing power. In an environment of persistent government deficits and expanding central bank balance sheets, institutional investors are increasingly viewing gold as a long-term hedge against a potential decline in fiat currencies such as the U.S. dollar. This shift is reinforced by central bank behavior. Global central banks added a massive 415 tons to their reserves in the first half of 2025 alone. Nations such as China and Poland have been consistent buyers as part of multi-year diversification strategies. This large-scale, sustained buying has reportedly pushed gold past the Euro to become the world's second-largest reserve asset, creating a durable floor under prices. The long-term outlook is gaining traction on Wall Street. Analysts at major institutions like Bank of America (NYSE: BAC) have proposed models suggesting these fundamentals could ultimately propel gold toward $6,000 per ounce. Their thesis treats gold not only as an inflation hedge but as a revalued monetary asset in a world with few reliable alternatives. The How: 2 Core Strategies for the New Gold Era Investors have two primary ways to gain exposure to this long-term trend, each with a distinct risk-reward profile. The choice depends on whether the goal is a stable hedge, higher growth, or a mix of the two. The Anchor: Direct Price Exposure via SPDR Gold Trust For investors who want to track the price of gold directly, the SPDR Gold Trust (NYSEARCA: GLD) is the most straightforward and liquid option. GLD is a physically backed exchange-traded fund that holds allocated gold bars in secure vaults; each share represents fractional ownership of that gold. With more than $140 billion in assets under management, it is the industry benchmark. - Strategy: Ideal for investors using gold as a core portfolio hedge. The fund is designed to mirror the metal's performance, providing a stabilizing anchor.
- Key Metrics: High liquidity and an expense ratio of 0.40%.
- Investor Sentiment: During the week ending Oct. 17, investors added over $1.7 billion to the ETF, signaling many used the dip as a buying opportunity.
The Engine: Leveraged Growth via Gold Miners For investors seeking higher returns and who are comfortable with greater volatility, gold mining companies offer a path to amplified gains through operational leverage. Because miners have substantial fixed costs, a modest rise in the metal's price can translate into a much larger percentage increase in profitability. A prime example is Newmont Corporation (NYSE: NEM), the world's largest gold producer. Newmont's financial strength helps mitigate many sector risks. - Financial Strength: Newmont recently reported a record $1.7 billion in quarterly free cash flow and maintains a very low net debt-to-adjusted-EBITDA ratio of about 0.1x.
- Shareholder Returns: Management continues to return capital, paying a quarterly dividend of $0.25 per share and authorizing an additional $3.0 billion for share repurchases.
- Analyst View: Wall Street holds a Moderate Buy consensus rating. In early October 2025, the stock attracted a wave of new bullish ratings, often accompanied by higher price targets.
For investors who prefer built-in diversification within the mining sector, the VanEck Gold Miners ETF (NYSEARCA: GDX) is a compelling alternative. With nearly $24 billion in assets, GDX holds a broad basket of leading miners, including Newmont and Barrick Gold, offering diversified exposure to the sector's leveraged upside. Positioning for the Next Phase The fundamental case for gold has evolved. The market is increasingly defined by sustained central bank buying and deep-seated concerns about the long-term stability of fiat currencies. Seen in this light, the recent correction looks less like a warning and more like a strategic window to establish or add to positions. The core drivers supporting gold remain intact. By choosing between direct exposure via an ETF like the SPDR Gold Trust or the leveraged growth potential of miners such as Newmont and the VanEck Gold Miners ETF, investors can align their approach with their objectives and position themselves for the next potential phase of this historic bull market.
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