What to choose for investment: gold or gold mining stocks
Gold's record rise has made it the number one asset in 2025, with demand for the precious metal rising not only among large buyers but also among smaller investors.
Today, there are many options for buying gold – bars and coins, cryptocurrencies tied to the price of gold, spot transactions.
But there is another option for investing in precious metals: shares of gold mining companies, and many professional investors choose this path.
In order to maximize diversification , the NYSE Arca Gold Miners Index (GDM) is purchased.
The NYSE Arca Gold Miners Index (GDM) is the most popular index in the world. It includes the largest publicly traded gold and silver mining companies. The famous GDX (VanEck Gold Miners ETF) is based on this index.
In addition to the growth in value, GDX also pays dividends. Their size is not particularly large and rarely exceeds 1% per annum, but this is not the main thing, and today we will discuss which is more profitable: GDX or direct investments in gold.
Comparison of the GDX index price and the price of gold over the past 5 years
Let's try to conduct a comparative analysis, excluding dividends, of how much the NYSE Arca Gold Miners Index has risen and how the price of gold has changed from 2021 to the end of 2025.
NYSE Arca Gold Miners Index chart
As can be seen from the chart, at the beginning of 2021, the GDX price was 988 points.
At the end of December 2025, this asset was already trading at around 2600 points. It is easy to calculate that the growth over five years amounted to:
2600 / 988 = 2,63 times or GDX rose in price by 163%
Additionally, dividends of approximately 7.4% were paid over a five-year period, meaning the final result was +170%.
Gold price chart for 5 years
At the beginning of January 2021, the price of the precious metal was around $1,860 per ounce.
At the end of December 2025, the price of one troy ounce of gold was $4,550, after which it is easy to make the calculation:
4550 / 1860 = 2,45 or gold has risen in price over the last five years 145%
Surprisingly, the conclusion is not in favor of gold, with the GDM index outperforming gold by 25% and proving to be a more profitable investment than gold alone.
| Parameter | Gold (Spot) | GDM Index (GDX Fund) |
|---|---|---|
| Price in January 2021 | $1,860 per ounce | 988 points |
| Price in December 2025 | $4,550 per ounce | ~2,600 points |
| Increase in exchange rate | +145% | +163% |
| Dividend yield | 0% | +7.4% (over 5 years) |
| The final result | +145% | +170,4% |
Therefore, if you believe that the price of gold will continue to rise, you should consider what to choose for long-term investment: GDM or gold bars.
