VanEck Gold Miners AUD ETF (ASX: GDX) is up 4.9% to $157.96 as gold stocks and ETFs rebound from a marked decline yesterday.
The gold price ripped to a new record of US$4,958 per ounce in earlier trading on Friday.
Analysts at Trading Economics say the gold price is on track for its strongest week since March 2020.
This is primarily due to high levels of ongoing central bank buying, lingering geopolitical risks, and a weaker US dollar.
Amid these tailwinds, GDX ETF has delivered stunning gains to ASX investors.
In CY25, GDX produced a total return of 143.76%, making it the second-best-performing ETF of the 423 on the market.
The gold price rose by 65% in 2025 and 27% in 2024 as central banks sought to diversify their reserves from the US dollar.
Central banks also see gold as a safe-haven investment amid unpredictable geopolitics.
US tariffs and uncertainty over the US President's next moves on global trade have weakened the US currency.
Expectations of further US interest rate cuts also continue to support gold, and investors are highly optimistic.
Large inflows into international gold ETFs and ASX gold ETFs in the second half of 2025 provided more support for the gold price.
Image source: Getty Images
What is GDX ETF?
The GDX ETF seeks to mirror the performance of the NYSE Arca Gold Miners Index (AUD) Index.
ASX GDX invests in 93 stocks, with 44% in Canada, 20% in the US, 11% in Australia, and 6% in China.
Its largest holding is also Newmont Corporation (ASX: NEM) shares.
It also holds Northern Star Resources Ltd (ASX: NST) shares at 2.7% of investments and Evolution Mining Ltd (ASX: EVN) at 2%.
Let's consider what would have happened if you invested $10,000 in GDX a year ago.
Total investment return on $10,000
On 23 January 2025, GDX ETF closed at $60.13 apiece.
If you had invested $10,000 then, it would have bought you 166 units (for $9,981.58).
There's been capital growth of $97.83 per unit since then, which equates to a staggering $16,239.78 in dollar terms!
So, your GDX holding is now worth $26,221.36.
GDX ETF also paid a 63-cent dividend last year, which gave you $104.58 in income.
Your capital gain of $16,239.78 plus your dividends of $104.58 represent a total return of 164% over 12 months.
Now, just for fun, calculate in your head how many months of wages it would take to earn the $16,344.26 that GDX earned for you.
The mind boggles.
