Swiss bank says gold stocks are a better buy than gold ounces

Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) (FRA: WCLA) recently poured its 1 millionth gold ounce in Nicaragua. Photo: Calibre Mining

Gold

Swiss bank says gold stocks are better buy than gold ounces

Growth potential and dividends were the primary reasons

Rowan Dunne

Published

March 31, 2025

Switzerland’s UBS Group AG (NYSE: UBS) (SWX: UBSG), one of the world’s most influential banks, thinks that buying shares of gold producing companies in 2025 is a wiser investment choice than bullion.

Several major gold mining stocks have risen by 34 per cent since Jan. 1, according to measurements from the VanEck Gold Miners ETF (NYSEARCA: GDX). Meanwhile, the value of gold has only gone up by 19 per cent in comparison.

In a research note Monday morning, Metals & Mining Analyst Daniel Major pointed out a few public gold operators that he thinks are a solid buy. He called his note provided to clients “Gold stocks are finally working…will it continue?”

Endeavour Mining PLC (TSE: EDV) (LON: EDV) and Franco-Nevada Corp (TSE: FNV) (NYSE: FNV) were notable selections he made.

“We continue to see attractive risk vs reward in the gold miners,” Major said. Moreover, UBS highlighted the growth potential and dividends of precious metal stocks as a key factor making them more attractive than coins.

Major also just raised his share target for Agnico Eagle Mines Ltd (TSE: AEM) (NYSE: AEM) (FRA: AE9) by US$10 to US$110. Additionally, he says Barrick Gold Corp (TSE: ABX) (NYSE: GOLD) (ETR: ABR) is a prime pick because of its anticipated resumption of gold production in Africa.

“A restart in Mali should act as a positive catalyst for the stock, and we believe country/delivery risk is sufficiently priced-in,” Major pointed out.

Big banks say gold’s bull run is far from over

Multiple powerhouse financial institutions think that it may not be time to sell your coins and bullion just yet.

Morgan Stanley (NYSE: MS), Goldman Sachs Group Inc (NYSE: GS) and Citigroup Inc (NYSE: C) (ETR: TRVC) have all recently set their one ounce spot price targets for the metal at US$3,300 or higher.

“Investor demand for physical bars, coins and even ETFs is starting to step in the last few months, “Morgan Stanley metals and mining commodity strategist, Amy Gower, told Bloomberg this week. “That’s actually new inflows to gold coming through here, and arguably plenty more to go.”

Furthermore, Citigroup commodities research lead, Max Layton, told CNBC that gold’s rally was expected to continue.

“Fundamental drivers of this gold bull market remain in place, and will continue to drive gold all the way up, in our base case, to US$3,200 an ounce over the next couple of months, and then potentially up as high as US$3,500 an ounce,” Layton explained.

UBS predicted that gold would hit US$3,200 per ounce by the end of 2025 earlier this month.