Gold price soars amid record stock markets—are we heading for a bubble?
October 2025 is shaping up to be one of the most dramatic months in recent market history. Gold has smashed through record highs near $3,900 an ounce, yet U.S. stocks remain surprisingly resilient. Rebecca Teltscher, portfolio manager at New Haven Asset Management, tells MINING.com host Devan Murugan that investors are facing a confusing, almost contradictory market landscape. “Take Canada’s TSX versus the US — two markets telling completely different stories,” Teltscher noted. The TSX is driven by gold prices, which are at historic highs, with the gold sector up a staggering 109% year-to-date, in response to factors like increasing central bank demand, investor flight to safety, and positive operational leverage within mining companies. Investors flock to gold during times of geopolitical tension or economic uncertainty. But the U.S. tells a different story, Teltscher pointed out. Tech giants, the so-called ‘Magnificent Seven’, are driving the S&P 500 to record valuations, despite a government shutdown and looming debt concerns. “We’re not buying it at this point — we think valuations are way too stretched on the US market, particularly in the technology sector,” Teltscher said. Teltscher said the US market being up days in a row despite a government shut down “doesn’t really make any sense.” “I hate using the word ‘bubble,’ but it feels like we’re in bubble territory,” she said. “The market in the US is looking expensive on almost every metric—whether PE, dividend yield, price-to-sales, price-to book—every metric you’re looking at is screaming expensive.” “Contrary to the TSX, you have two markets that are doing extremely well, but one of them is signaling economic weakness and the other is signaling growth.” The contradiction: gold vs. tech Gold traditionally rises when stocks are weak. Yet today, gold and U.S. equities are both at record levels. Teltscher calls this “very conflicting” and points to central bank activity and cryptocurrency adoption as partial explanations. “Central banks are increasing reserves…possibly because they see geopolitical tensions at a high. All these factors are pointing to gold acting as a safe haven investment.” Teltscher also pointed out that if cryptocurrency Bitcoin was not viewed as another form of safe haven—gold might be driven even higher. Has the safety net gone too far? Markets have largely shrugged off U.S. government shutdowns in the past, relying on central banks and government interventions to bail them out. But Teltscher warns that investors may be underestimating the limits of this safety net. “We haven’t seen a real recession since ’08–’09. Investors under the age of 40 have never seen a prolonged economic recession. The pandemic should have been a recession, but unprecedented government stimulus and central bank action prevented it,” she noted. Teltscher stressed that while markets are pricing in “no recession,” the underlying economic indicators tell a different story: slowing GDP, weakening consumer sentiment, and falling retail spending all signal potential trouble. What’s next? Teltscher expects markets to eventually realign with economic reality, though she stops short of predicting a crash. “Not necessarily a crash, but valuations shouldn’t be as stretched as they’ve been in the past few months. It’s time for the market to reflect the geopolitical and economic risks we’ve been seeing,” she said. As October unfolds, investors are left facing a rare dilemma: safe-haven gold is soaring while U.S. tech stocks remain sky-high. According to Teltscher, only one of these market signals can be correct—and its time for the market to come back to reality. Watch the full interview: Mining Metrics: US shutdown, gold – Newhaven Asset ManagementWeiter zum vollständigen Artikel bei Mining.com
Quelle: Mining.com
