The Switzer Group’s Call: Gold Shines, but Stocks Are the Real Treasure
Why Gold and Silver Stocks Could Be Your Next Big Win in 2025
As gold and Silver Prices soar in 2025, many investors are left wondering if they’ve missed their chance to cash in on the precious metals rally. With gold up a dazzling 25% this year alone and boasting a 50% surge over the past 12 months, it’s easy to feel like the train has left the station. But hold your horses—there’s still a compelling case for diving into this glittering market, especially when it comes to mining stocks. According to The Switzer Group in their Weekly Wrap – Edition #1,100 published on June 16, 2025, the opportunity lies in the underappreciated gold and silver stocks that haven’t yet caught up to the metals’ meteoric rise. Let’s unpack why this could be your golden ticket.
The precious metals sector remains a wallflower at the market’s dance, woefully “under-owned” despite its shiny allure. As The Switzer Group notes, “This is still an extremely ‘under-owned’ sector in the markets, with many dipping their toes in with simple ETF ownership” (1). While ETFs have funneled cash into big names like Newmont Mining and Barrick, boosting their gains, many mid- and large-cap gold and silver stocks are still lagging. Historically, these stocks offer leverage, meaning they typically outpace the metal’s price moves. Yet, as the report points out, “most mid and large cap names have had ‘decent’ moves but nothing close to what you would expect after the 50% move in gold over the past 12 months” (1). This gap signals a potential catch-up rally for these stocks, offering savvy investors a chance to outshine the metal itself.
What’s fueling this opportunity? The fundamentals for gold are rock-solid. Central banks worldwide are hoarding gold at levels unseen since the 1990s, a trend The Switzer Group highlights as a key price support: “Acquisition of physical gold by central banks is at its highest levels since the 1990’s and that should underpin the price for some time as they are unlikely to be sellers any time soon” (1). Add to that a cocktail of global uncertainty—Trump’s trade wars, the Russia-Ukraine conflict, and a softening economy—and you’ve got a textbook case for owning gold. The World Bank’s grim 2025 forecast, slashing global growth to 2.3% from 2.8% in 2024, only strengthens the case for safe-haven assets like gold (1).
But it’s not just about the metal. The mining stocks are where the real action could be. With many investors still hesitant, favoring ETFs over individual names, mid-tier stocks are primed for a breakout. The Switzer Group suggests two scenarios: either Gold Prices pull back to align with stock prices, or the stocks rally hard to close the gap. Given the robust demand and limited supply dynamics, the latter seems more likely. As the report quips, “Things can generally go two ways, the metal trades back to the stocks, or the stocks rally hard and catch up to the move in the underlying commodity” (1). Betting on a stock rally could be the smarter play.
Beyond precious metals, the Weekly Wrap offers a snapshot of other market movers. The World Bank’s downgrade of U.S. growth to 1.4%—half of last year’s pace—cites Trump’s tariff policies as a confidence-killer (1). Meanwhile, Canada’s new Prime Minister announced a $9 billion defense spending hike to hit NATO’s 2% GDP target, a move to appease allies and dodge Trump’s tariff threats (1). On the corporate front, Topgolf Callaway Brands jumped 11% after a $2.5 million insider buy, while OpenAI hit $10 billion in annual revenue, cementing its AI dominance (1). These tidbits underscore the interconnected global landscape driving investor sentiment.
So, is it too late to buy precious metals? Not if you’re eyeing the right opportunities. Gold and silver stocks, particularly the underloved mid-caps, could be poised for a breakout as they play catch-up with the metals’ rally. With central banks stockpiling gold and global uncertainties piling up, the case for exposure is stronger than ever. As The Switzer Group wisely frames it, the question isn’t whether you’ve missed the boat—it’s whether you’re ready to sail with the stocks that are still docked.
Source:
The Switzer Group, “Weekly Wrap – Edition #1,100 – June 16th, 2025,” June 16, 2025.