Gold Miners Trade at Record 0.75x NAV After 155% Rally
Despite a 155% gain over the past year, global gold miners trade at just 0.75x NAV for seniors and 0.51x NAV for juniors, reflecting valuations based on gold at $2,000–$2,500/oz while physical gold exceeds $5,000/oz. Total market cap stands at $1 trillion versus Walmart’s $1.1 trillion, suggesting significant upside.
1. Historic Valuation Dislocation
Physical gold exceeds $5,000/oz while mining stocks price in $2,000–$2,500/oz, creating an historic dislocation that leaves the sector valued smaller than Walmart’s $1.1 trillion market cap.
2. Key Valuation Metrics and Market Cap
Senior gold miners trade at 0.75x net asset value and juniors at 0.51x after a 155% rally, yet the total sector capitalization remains near $1 trillion and capital expenditures sit at multi-decade lows relative to gold prices.
3. BoA’s Bullish Outlook
Bank of America names gold miners its top pick for 2026, citing geopolitical instability, a weak dollar, record central bank purchases and a forecast for gold to break $6,000/oz, which could drive ETF flows and re‐rate sector valuations.