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I think these FTSE 100 momentum stocks have the potential to deliver spectacular long-term returns. Here’s why.
Riding the gold price
Gold prices are rocketing as investors and central banks boost their exposure to safe-haven assets. Latest World Gold Council (WGC) data showed global central banks — which account for almost a fifth of all the gold ever mined — added another 15 tonnes to existing reserves in August.
Almost three-quarters of central bank officials expect reserves to keep building to 2030, WGC data also shows, as they diversify their holdings and protect themselves from macroeconomic and geopolitical shocks. This could support gold’s multi-year bull run with further sustained strength.
Share investors have plenty of gold stocks to buy to capitalise on surging central bank and investor demand. Endeavour Mining’s (LSE:EDV) one I think demands serious attention. Its share price is up 109% in 2025, outpacing the 48% rise in the gold price over the period.
Purchasing gold shares involves a greater level of risk than buying gold, or a gold-tracking exchange-traded fund (ETF) instead. In Endeavour’s case, slow production ramp-ups, strike action and increased royalty demands in Bukino Faso have impacted profits in recent times.
Yet this strategy can also lead to substantially better returns when bullion prices rise. Thanks to operational leverage, Endeavour’s profits have advanced more sharply than gold values, resulting in those enormous share price gains.
Earnings here have also been boosted by strong production numbers. The Footsie company mined 38% more gold between January and June than the same 2024 period, which combined with better metal values pushed EBITDA 226% higher year on year.
Silver surfer
While the outlook for gold prices is robust, holding bullion-focused miners is still riskier than more diversified producers. The likes of Endeavour could drop in value if demand for safe-haven assets fall, weighing on its bottom line.
Considering Fresnillo (LSE:FRES) shares, by contrast, can offer the best of both worlds. This FTSE 100 company produces both gold and silver (today, it’s the world’s biggest silver producer and a global mid-tier gold miner), allowing it to capitalise on strong demand for safe havens.
Silver’s actually risen 66% in value so far in 2025, a stronger performance than gold. However, the grey metal is also used extensively for a variety of industrial purposes. So if economic conditions improve, it could also continue outperforming its more expensive counterpart.
As with Endeavour, Fresnillo also benefits from the ‘leverage effect’, where profits can rise faster than revenues thanks to these companies’ fixed cost bases. Its EBITDA increased 103% between January to June, even as falling silver output offset the impact of higher metal values and better gold production.
I’m optimistic earnings should continue soaring, though the reduced ore grades at its Mexican mines remain an issue. This impacted production at both its Ciénega and Juanicipio projects in the first half.
Since 1 January, Fresnillo’s share price has increased 262% in value. Given growing macroeconomic and geopolitical stresses, and the impact these phenomena have on precious metal prices, I think both FTSE shares could be great stocks to consider for the long haul.
