Gold’s 2025 rally has been nothing less than spectacular. A recent Thematic Research report by CFRA identifies the iShares MSCI Global Metals & Mining Producers ETF (BATS:PICK) as having favorable implications, directing attention to its exposure to international metals and mining producers that are benefiting from the rise in gold prices.
- PICK ETF is up more than 30% YTD. Check its prices, live.
The ETF, which includes Newmont Corporation (NYSE:NEM), BHP Group Ltd (NYSE:BHP), and Rio Tinto Plc (NYSE:RIO) among its most substantial holdings, provides diversified exposure to the companies that offer the very metal that’s sending investors into a tizzy. As gold prices skyrocket and production margins expand, mining companies are once again shining brightly, and PICK is basking in that glow.
Meanwhile, the SPDR Gold Shares ETF (NYSE:GLD) is up 55% year-to-date, outpacing broader equity benchmarks. "Gold and Bitcoin ETFs significantly outperformed ETFs representing other major asset classes YTD," said Aniket Ullal, head of ETF Research at CFRA.
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Central Banks Power The Bullion Supercycle
The driving force behind the action is a steady stream of central bank buying that continues unabated.
"Demand from central banks has been an important driver of prices for gold, a continuation of a multiyear trend," said Ullal. In 2010, central banks accounted for only 2% of global gold demand. That proportion rose to 15% in 2015, and since 2020, official purchases have exceeded 1,000 tons per annum, according to CFRA’s Thematic Research report.
CFRA points out that 2025 is set to shatter that record once more, as centrally controlled banks of emerging markets diversify out of the U.S. dollar and into hard assets. The result has been a consistent tailwind for gold-linked funds, not only for bullion ETFs such as GLD, iShares Gold Trust (NYSE:IAU), and SPDR Gold MiniShares Trust (NYSE:GLDM), but also for the miners that extract the metal from the ground.
Retail Investors Add Fuel To The Fire
The second half of the tale is retail enthusiasm. Gold ETF inflows have surged this year to $36.9 billion YTD, versus only $1.7 billion in 2024. CFRA credits the surge to “performance chasing by retail investors” following the metal’s powerful price momentum.
This mix of institutional and retail demand has boosted sentiment throughout the precious metals complex. The PICK ETF, which owns global mining giants, has attracted new investor interest as a high-beta path to the gold momentum. CFRA’s report even marks PICK with an upbeat implication associated with the current bullion boom.
Why Gold Miners Might Keep Digging Higher
With actual returns still low and inflation still sticky, CFRA anticipates the opportunity cost of holding gold to remain modest, a key support for prices. "If inflation stays high and real yields are low, that would be a tailwind for the category," Ullal said.
For investors, that could translate into higher upside in gold miners, which have trailed the metal itself for most of the advance. While central banks continue to stack bars and retail flows pursue glitter, PICK may be the quiet beneficiary of one of 2025’s most glittering trades.
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Image via Shutterstock/ Yee Hui Lau
