Is the broader stock market getting too expensive? According to several historical metrics, equities are currently trading at stretched valuations. But for investors willing to look beneath the surface, there are still compelling opportunities to be found.
In our latest market update, Jim Gore examines why investing in gold miners looks increasingly attractive in 2026. Against a backdrop of expensive equity markets, rising federal debt, and strong central bank buying, gold has a powerful macroeconomic tailwind. However, the real story lies in the earnings growth and valuations of individual gold mining companies.
By analyzing the data, we make the case that gold miners offer a compelling opportunity for investors looking to navigate a top-heavy market.
We start by looking at the “Buffett Indicator” (the ratio of total United States stock market valuation to GDP). This metric highlights just how stretched the broader equity markets have become in the United States.
Historically gold miners have outperformed gold by 2x+ in bull markets due to operating leverage in the businesses. In the recent bull run we haven’t seen this level of outperformance.
YTD the price of gold is flat which should help the margins and earnings of gold companies.
Pull back in price coupled with high earnings has lead to attractive valuation.
We are seeing the same story with Coeur mining and remain encouraged with current valuations.
US stocks are relatively expensive and double the valuation of gold miners.
Increase in federal debt, central bank buying, and futures market dynamics should be supportive of the price of gold.
When broad market indices reach historically high valuations, risk management becomes critical. At THOR Wealth Management, our active investment management approach allows us to look beyond the headlines and find pockets of value—like gold miners—that align with our clients’ long-term goals.
If you are concerned about stretched equity valuations and want to ensure your portfolio is positioned for the macroeconomic road ahead, a comprehensive financial plan is the best place to start. Reach out to our team today to discuss your strategy.
