Gold's record run is minting winners beyond bullion, like an IPO that just popped 66%

Gold isn’t just shattering records in the commodities market — it’s minting them in equities, too.

Spot gold smashed through a new record above $3,800 an ounce on Tuesday, capping a relentless rally that has sent gold up 47% so far this year.

The latest gains have been fueled by fears of a US government shutdown and expectations of Federal Reserve interest rate cuts.

That backdrop set the stage for a blockbuster Tuesday debut by Zijin Gold International in Hong Kong. The company is the overseas arm of Zijing Mining, one of China’s top gold producers.

The miner’s shares jumped as much as 66% on their first day of trading, underscoring how investors are scrambling for equity exposure to the bull market in bullion.

The retail portion of Zijin Gold’s $3.2 billion IPO was oversubscribed 241 times, regulatory filings show.

“For mining enterprises like Zijin Gold in the upstream of the gold industry chain, a sustained high and rising gold price will drive the performance growth, as the rise in gold prices will directly boost its revenue and profits,” wrote Criss Wang, an analyst who publishes on the Smartkarma platform, on Tuesday.

Gold-linked ETFs have also swelled in size this year. The VanEck Gold Miners ETF and Sprott Gold Miners ETF have more than doubled this year to date.

Shares of mining giants have followed suit. Colorado-based Newmont, the world’s largest gold miner, is up 127% this year. Canada’s Barrick Mining, another top gold miner, has climbed 114% over the same period.

From haven to growth asset

Zijin Gold’s listing came at an opportune time, as gold is having its best year since the 1970s.

The macro drivers remain critical.

Falling bond yields, driven by expected Fed rate cuts, make gold more attractive, while sticky inflation supports its role as a hedge.

At the same time, geopolitical uncertainty — including Donald Trump’s second term as president — has reinforced its traditional safe-haven appeal.

However, even before Trump’s election win and inauguration, gold has been on the up due to sustained central bank buying.

This year, ETF investors are piling in, too.

“The fact that ETF demand has re-entered the scene so forcefully means that there are two forms of ‘aggressor’ bids for gold, from central banks and ETF investors. This helps to explain why gold continues to perform so well,” wrote Michael Hsueh, a research analyst at Deutsche Bank, in a Monday note.