Gold ETFs and miners outperform in 2025

If you have paid attention to financial markets for even just one second this year, you’d know that gold completely dominated every single place.

According to data from Morningstar Direct, the top 10 UK funds in 2025 are all tied to gold, silver, or precious metal miners. Check out the list:-

• Franklin Gold and Precious Metals Fund delivered a return of 184.33%.
• SVS Baker Steel Gold and Precious Metals Fund came in with 173.47%.
• Schroder International Selection Fund Global Gold made 169.15%.
• Bakersteel Global Funds SICAV – Precious Metals Fund returned 168.51%.
• BlackRock Global Funds – World Gold Fund clocked 161.20%.
• CPR Invest – Global Gold Mines showed 158.69%.
• Jupiter Gold and Silver Fund earned 157.83%.
• Ninety One Global Strategy Fund – Global Gold Fund hit 157.53%.
• Ninety One Global Gold Fund pulled in 157.10%.
• Jupiter Gold and Silver Fund (another class) finished at 153.01%.

Every name in the top 10 was betting on precious metals, and they were all right.

Record-breaking gold prices fueled massive fund gains

The surge came as gold jumped by 60% to over $4,300 per troy ounce. Silver crossed $60 an ounce in December. What lit the fire? Four things: geopolitical chaos, central banks shifting away from the dollar, persistent inflation, and a full-blown “fear of missing out” among investors. That combo turned metals into the year’s hottest trade.

Laith Khalaf, head of investment analysis at AJ Bell, said, “The conditions which have created the gold rush don’t look like abating, and lower interest rates should be positive for the precious metal.” He also warned that gold can swing wildly, adding, “Buyers should beware there can be steep downdrafts and long periods in the wilderness.”

Across Europe, the top 10 performing funds were also packed with precious metal strategies. Ken Lamont, principal at Morningstar, said Europe’s top funds were “overwhelmingly concentrated in precious metal-focused strategies.”

Darius McDermott, managing director at FundCalibre, added, “Gold and precious metals have been leading the way in 2025 with some astonishing returns. There have also been very strong returns from most equity markets this year, too, and not just the US.”

Daniel Casali, chief investment strategist at Evelyn Partners, pointed out that gold still serves a purpose in portfolios.

“With Western public debt continuing to rise and gold’s proven role as an inflation hedge, holding bullion provides resilience amid geopolitical and financial uncertainty,” he said. Daniel backed that up with 2022 data, when stocks and bonds took a beating but gold held firm.

Sadly, India-focused funds didn’t stand a chance, as Ken said that:-

“Tariff [challenges] have weighed on growth expectations, while a tumbling rupee has pushed Indian equity returns into negative territory for UK investors this year.”

He added that tech-heavy funds in India struggled as demand for outsourcing and IT services tanked, crushing profits.

The Bank for International Settlements isn’t buying the hype. It flagged both gold and US stocks for flashing bubble signs, blaming “exuberance” among retail investors.

“The past few quarters represent the only time in at least the last 50 years in which gold and equities have entered this territory simultaneously,” the BIS said. “Following its explosive phase, a bubble typically bursts with a sharp and swift correction.”

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