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Precious metals started 2026 as they left in 2025. They are going up! Silver started the year just above $70 per ounce and is now near $90. Gold entered 2026 at around $4,300 an ounce and is now close to $4,600. I’ve said before that I think we’re in the midst of a commodity boom. Here are a few FTSE stocks can provide exposure to this theme.
Great job benefit
First of all Try Mine (LSE:EDV). It is one of the largest gold producers in West Africa, operating mainly in areas such as Côte d’Ivoire and Senegal. Naturally, producing gold is more expensive now than it was a year ago. This is reflected in the 171% share price gain over the past year.
This rocketship has surpassed even the top flight of the precious metal. This is because the company benefits from operating profit. What I mean is that with higher prices, cash flow and profitability improve because the increase in revenue is not always equal to the corresponding increase in costs. If the price of gold jumps by 10% tomorrow, revenue increases by 10%, but the cost of mining remains the same.
Of course, the risk is that if the price of gold crashes in the future, Endeavor’s fixed costs will be difficult to reduce. So this is where the company can lose money. This volatility and uncertainty is why some investors are very cautious about buying commodity stocks. But, in my opinion, gold can continue to rally amid global uncertainty, low interest rates, and investors’ need for a safe haven.
Endeavor is well set to continue to capitalize on any price increases, with a diverse portfolio of mining production and growth projects in West Africa. This is a good combination of existing revenue generating assets and potential new options.
A silver giant
Another idea is Fresnillo (LSE:FRES). It is widely considered to be the largest silver mine in the world, while also producing gold. As a result, it has benefited from the movement of silver prices, and through the performance ratio I mentioned earlier. As a result, the stock price has risen a whopping 486% over the past year.
Last summer’s interim financial results showed a 160.7% increase in gross profit. When the full year results come out, I would expect profits to increase even more, given the rise in precious metal prices since then. Income investors also drive share prices due to increased dividend payments. For example, interim results confirmed dividends of $0.208 cents per share, for a total of $153.3m. In theory, the dividend from H1 2024 reached $47.2m.
Looking ahead, the company is well positioned to continue growing if gold and silver continue to rise. Because of the size and scale of Fresnillo, it can take a large part of the benefits from rising prices.
The company now has a price-to-earnings ratio of 139. This is too high and may indicate an overvalued stock at risk of correction. Another concern is the large exposure it has to Mexico, which is subject to regulatory, tax and political uncertainty.
Despite those concerns, I think both stocks could do well if precious metal prices continue to rise. Therefore, they may be worth considering by investors seeking exposure to this theme.
