Gold and valuable metals have been a bright place this year, which helps to improve the S&P/TSX Composite Index S&P500, the fund managers said that the time for retail investors can still be in action.
J. John Jakener, president and founder of Zechner Associates, said, “In Canada, gold has been a very proposer, and I think if you break the index, gold is now at 12 percent of our index, and it has been a very big winner,” J. John Jackner, president and founder of Jakener Associates, said.
“This is the most important reason for me why Canada has played such a catch-up and actually improved S&P 500, of course this year so far.”
According to LSEG Data and Analytics, TSX was about 11 percent year-to-year till Wednesday afternoon, while S&P 500 was about eight percent up.
Meanwhile, the price of gold has increased by about 30 percent during the year so far, with August Gold Contract to around US $ 3,400 an ounce.
Middlefield senior portfolio manager Denis da Silva agreed that TSX is the “biggest contributor” in the golden field.
“If you look at the S&P/TSX Global Gold Index, it is 40 percent year-on-year. So if you tie in TSX, I would say that 30 percent of the return of the index is operated by gold and silver names or precious metals,” he said in an interview last week.
In contrast, American markets have been mainly operated by large-cap technology companies in recent years, which “the US pursues the story of extraordinary,” said Chris McHaini, head of investment management and strategy in Global X Investments Canada.
He said, “I wouldn’t say that it has gone out of steam, but it has started to appear that some of those drivers are starting to slow down in terms of increase in the amount of increase provided to the American market,” he said.
McHaini noted that this year the performance of the so -called magnificent seven groups has been divided. A brilliant seven larger-cap is a group of US tech stocks that have a major impact on equity markets. The list includes alphabet, Amazon, Meta Platform, Microsoft, NVDia and Tesla.
For example, Tesla’s shares are about 20 percent less year-on-year; Meanwhile, the alphabet shares are flat. On the other hand, Nvidia and Microsoft shares are up to 27 percent and 20 percent since the beginning of the year respectively.
The mixed photo has helped the more metal-focused index benefits of Canada, McHaini said.
“This is actually more gold in a story of gold and in Canada, we just have more risk for it,” he said.
According to Da Silva, there are some reasons why gold prices Increased, one is that commodity has benefited from the demand for safe shelter assets, especially as a global trade dispute.
This year, especially in March and April, the stock markets have been unstable, when US President Donald Trump began rolling tariffs on countries around the world, only to delay several. Uncertainty on how the global economy and the company’s profits will be affected by changing trade policies have inspired investors for safe assets like gold.
McHaini said that there are some factors that affect the price of gold – government’s lack, inflation concerns and business uncertainty are positive – but it can be difficult to assess that the price move is going on at a certain time.
Dr. Silva said that central banks around the world were also buying major items as another source of reserved currency.
He said that this trend became more common after the US and the European Union freeze Russian wealth after attacking Ukraine.
“I think it was a way awakened call that your property is not safe. They could be frozen, and this caused the countries to re -evaluate how they keep foreign stores.
While McHaini said it is difficult to determine whether TSX S&P would continue to perform better than 500, he said that he does not even think that retail investors have missed the boat in terms of investing in gold, especially gold.
“I think some of the drivers who are working well for Canada, not necessarily either going away tomorrow. Maybe there may be a psychological element ‘maybe I miss that performance, I will just be where I am,” he said.
“We feel that gold cannot increase the value itself, but it is just to be where it is now to continue very strongly for gold equity.”
This report of Canadian Press was first published on 24 July 2025.
Companies in this story: (TSX: GSPTSE)
Daniel Johnson, Canadian Press