Evy Hambro of BlackRock stated that gold remains undervalued despite record prices, with mining companies presenting strong investment opportunities as of 2025.
Hambro’s insights suggest potential for gold market growth, highlighting possible undervaluation in mining stocks amid global economic shifts.
Gold Miners Undervaluation Amid Record Prices
BlackRock’s Evy Hambro asserts that gold miners are undervalued despite record gold prices. Gold’s purchasing power varies by product type, according to Hambro.
BlackRock has increased investments in Newmont and Endeavour Mining, reflecting confidence in mining company valuations. Hambro highlights the historically low valuation gap in equity markets. Evy Hambro, Global Head of Thematic and Sector Investing, BlackRock, said: “At these prices these companies are earning enormous margins … They’ve never been cheaper than they are right now.”
Central Bank Gold Buys and Market Effects
Newmont’s stock surged 140% this year, fueled by investor interest in gold equities. The VanEck Gold Miners ETF similarly saw a 121% rise.
The increased central bank gold acquisition underscores global liquidity concerns and may influence crypto asset behavior. The institutional purchase trend supports the gold market.
Gold Equities Echo Past Bull Market Trends
In past bull markets, gold miner valuations did not mirror current undervaluation levels. Cost inflation and discounted models previously impacted equities.
Expert analysis suggests the current capital flow into gold equities could mirror historical shifts in BTC and crypto investments during gold strength periods.
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