Let’s take a closer look at the top three and consider whether there’s still time to join the party.

Hot!

Polar Capital Technology Trust seeks to “cut through the hype” often associated with the tech sector. To do this, it invests in businesses “playing on structural, secular trends”. Unsurprisingly, it only takes positions in companies that are fully embracing AI.

Around 30% of its £7.3bn portfolio is accounted for by the ‘Magnificent 7’, which goes a long way to explaining how its net asset value (NAV) per share increased by 102% during the year ended 30 April, compared to a 55% increase in the trust’s chosen benchmark, the Dow Jones Global Technology Index.

I think the trust’s an excellent way to get a foothold in the tech sector without having to decide who the long-term winners are going to be. Through one shareholding, risk is spread across 101 different companies. And it trades at a 7.5% discount to its NAV.

Despite its stellar run, I think there could be more to come. That’s why I believe it’s a stock that’s still worth considering.

Hotter!!

Antofagasta’s a copper miner based in Chile. And with the metal now an essential part of the manufacturing process for, among other things, electric vehicles and renewable energy infrastructure, the group’s benefitted from a 32% rise in the price of copper over the past year.

However, the price of copper is closely related to the health of the global economy. Any slowdown and earnings in the sector could be badly hit. Adverse exchange rate movements and political instability could also affect the group.

But for now, market fundamentals suggest copper prices are likely to remain at their historically elevated level. Set alongside its huge reserves, high margin, and strong balance sheet, Antofagasta could be one to consider for those prepared to add something at the riskier end of the scale to their portfolios.

Hottest!!!

Fresnillo, the Mexican gold and silver miner, has been the FTSE 100’s best performer over the past year, largely due to the price of these precious metals soaring 34% and 116% respectively.

But investing in the sector is risky. Volatile prices, production interruptions, and geopolitical instability are persistent threats.

However, I believe the long-term outlook for gold and silver is positive with both expected to be in supply imbalance. Central banks are the biggest buyers of the former as they seek to reduce their exposure to the dollar and hedge against expected higher inflation. Data centres and renewable energy are just two of the sectors helping to boost the demand for silver.

Personally, I think the recent pullback in the price of these two precious metals – both are over a third lower than their 52-week highs — makes Fresnillo a stock to consider. However, with erratic commodity prices fundamental to the group’s earnings, investors should be prepared for a bumpy ride.

Should you invest £5,000 in Polar Capital Technology Trust Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Polar Capital Technology Trust Plc made the list?

James Beard does not hold any positions in the companies mentioned.

The post Hot, hotter, hottest. Is it too late to consider these 3 FTSE 100 shares? appeared first on The Twelfth Magpie.

What matters more is whether fundamentals remain intact and whether the market has already priced in future earnings growth — because if it hasn’t, today’s winners may still have further to run.

Copper, the new gold

Glencore shares (LSE: GLEN) have surged over the past 12 months, with the investment case increasingly shifting towards copper.

Demand drivers are well known — electrification, grid expansion, AI-driven data centres, and a revival in industrial investment across the US and beyond.

What is changing now is the supply side. The market is beginning to recognise that future copper demand is likely to outstrip new supply by a wide margin. Glencore’s own long-term modelling suggests a structural shortfall of around 27m tonnes by 2050.

Source: Glencore

Against this backdrop, the group is targeting a major step-up in copper production, lifting output towards 1.6m tonnes by 2035. That marks a clear shift in strategy, driven by stronger pricing signals in recent years.

Risks remain. Commodity prices are inherently volatile, and any slowdown in global growth or disruption to mining operations could quickly impact earnings momentum.

Silver — a volatile metal

Fresnillo shares (LSE: FRES) have had a far more volatile ride. After a sharp spike towards $120, silver prices has since retreated and consolidated in the $70s, leaving some investors questioning whether the move has run its course.

On the surface, sentiment has cooled. But underneath, little has really changed.

Over the longer-term trend, silver has effectively moved sideways for months — a sign of consolidation rather than breakdown.

Structural demand

At the same time, structural demand pressures remain in place. Central bank buying, particularly in Asia, continues to underpin physical demand. Meanwhile, inventories across key pricing hubs such as COMEX and the London Bullion Market Association (LBMA) remain tight.

Beyond monetary demand, silver also carries an industrial profile increasingly similar to copper. It has a growing use in electrification, electronics, and energy transition technologies.

Taken together, this suggests a market still underpinned by firm long-term demand dynamics, even if short-term price action has shaken confidence. Calls for a return to $20-$30 levels look increasingly disconnected from the structural picture, in my opinion.

What matters for Fresnillo is the margin profile. With all-in sustaining costs (AISC) around $20, even mid-$70 silver prices imply very strong operating leverage, with incremental gains flowing disproportionately into profits.

Risks remain. Energy costs in particular are a key input and could erode margins if they remain elevated or rise further, alongside normal commodity price volatility.

Taken together with Glencore, both stocks sit within the same broader theme — the early stages of a potential commodities supercycle driven by structural supply constraints.

I’ve recently added to my Fresnillo holding on the pullback, having taken advantage of the weakness in the share price, which is still down around 25% from recent highs. In Glencore, I already hold a significant position, having been adding further over the past few months as the copper story has strengthened.

Should you invest £5,000 in Fresnillo Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Fresnillo Plc made the list?

Andrew Mackie owns shares in Glencore and Fresnillo.

The post Up over 100%, are these FTSE 100 names still among the top stocks to buy? appeared first on The Twelfth Magpie.

That debate now surrounds Fresnillo (LSE:FRES), a former market darling whose fortunes have become closely tied to one of the most volatile corners of global markets.

Sentiment has cooled

Since peaking at around $120, silver has retreated into the $70 range. On the surface, that kind of reversal looks like a textbook case of a rally running too far, too quickly.

But that is where the debate becomes more interesting.

Moves of this scale are not common in stable market conditions. Never in history has the price ever exceeded $50. That in itself could be telling.

Today, investors are once again weighing up whether this is another speculative cycle that has run its course. There are precedents — notably the early 1980s and the post-financial crisis period — when sharp rallies in silver were followed by long periods of consolidation.

The key question now is whether this time is different, or whether history is repeating itself once again.

So where do I sit?

Supply and demand

I come very much down on the side that the precious metals bull market is far from over.

The macroeconomic backdrop that supported the initial move higher remains broadly intact. US debt continues to rise, now exceeding $40trn, while interest costs are placing increasing pressure on public finances.

At the same time, the long-term purchasing power of the dollar continues to erode. Historically, that combination has been supportive for hard assets.

But silver is not just a monetary hedge.

Demand is also coming from industrial applications across electronics, data infrastructure, defence systems, electric vehicles, and renewable energy. In many of these uses, substitution is either difficult or comes at a cost in performance, which supports structural demand over time.

On the supply side, constraints remain significant. New mining capacity takes many years to develop, requiring long lead times, capital investment, and specialist expertise that is increasingly scarce. As a result, supply growth is slow to respond even when prices move higher.

What’s the verdict?

Of course, Fresnillo does not control silver prices, and mining remains inherently cyclical and operationally complex. Input costs, reserve replacement, and production execution can all materially impact profitability.

But what stands out from the FY25 results is how powerful the business becomes at current metal prices. Even at around $70 silver and $4,500 gold, Fresnillo is generating exceptional margins and strong cash flow.

That matters because it highlights the leverage embedded in the model. If today’s pricing environment proves more durable than many expect, the earnings power of the business could look very different over the next cycle compared with the last.

For investors with little or no exposure to precious metals, the key question is therefore not whether volatility will continue — it almost certainly will — but whether the current level of profitability is being fully recognised over the long term.

On that basis, Fresnillo is one to watch closely as the next phase of the cycle unfolds.

Should you invest £5,000 in Fresnillo Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Fresnillo Plc made the list?

Andrew Mackie owns shares in Fresnillo.

The post Is it all over for this FTSE 100 darling — or could investors be writing it off too soon? appeared first on The Twelfth Magpie.

With this in mind, I’ve been taking a closer look at the rhyme from which the website takes its name. What does it tell us?

One for sorrow

Savvy investors know that having a diversified portfolio is a means of spreading risk. Owning just one share could be a bad decision. Putting all of your investment eggs in one basket is a bad idea.

Two for joy

It’s a great feeling when a portfolio performs well.

Three for a girl, four for a boy

As well as having a diversified portfolio spread across various companies, sectors, and countries, it’s also important to ensure it’s balanced. What does this mean? Essentially, I believe a mix of growth and income stocks is ideal.

Five for silver, six for gold

Appropriately, some of the best performing UK shares over the past 12 months have been miners. Since May 2025, Fresnillo (LSE:FRES), the Mexican gold and silver producer, has seen its share price more than triple as investors have increasingly turned to precious metals as a ‘safe haven’.

However, the stock’s at the riskier end of the scale. Although metal prices have done well, this could quickly change. As a result, it’s impossible to accurately predict the group’s earnings from one period to the next. Also, mining’s operationally challenging.

But demand for gold’s rising, with many of the world’s central banks being the biggest buyers.

Silver’s used in more industrial applications than gold but the market’s been in supply-demand deficit for some time. Solar energy and AI data centres could help push prices higher.

On balance, I think it’s a stock to consider.

We anticipate that at least one of our advanced prospects will join our development portfolio in the coming two to three years. With demand for silver and gold forecasted to exceed supply, driven by the green energy transition and the safe-haven status of gold, Fresnillo is well-positioned to capitalise on the opportunities ahead.

Alejandro Baillères, Chairman, Fresnillo

Seven for a secret never to be told

Sniffing out those hidden bargains is one way of achieving investment success.

Eight for a wish

But it’s essential not to get carried away. It’s important to invest based on a company’s fundamentals rather than sentiment or to follow the crowd.

Nine for a kiss

UK shares have a great reputation for paying generous dividends. For example, there are currently 53 on the FTSE 350 that are paying more than 6%. Of course, dividends are never guaranteed.

10 a surprise you should be careful not to miss

Every now and again, the stock market will throw up something unexpected. The key is to be ready to act quickly.

11 for health

There are plenty of UK shares with strong balance sheets. Understandably, lots of attention is paid to earnings but these are underpinned by a company’s financial health as reflected by its assets and liabilities.

12 for wealth

Ultimately, building wealth is what it’s all about. Personally, I think UK shares are a great way of achieving this.

Should you invest £5,000 in Fresnillo Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Fresnillo Plc made the list?

James Beard does not hold any positions in the companies mentioned.

The post 1 for sorrow… 12 for wealth: lessons for investing in UK shares appeared first on The Twelfth Magpie.

That’s a substantial figure — and for most investors, it quickly reframes the challenge. This is no longer just about saving steadily into an ISA, but about the type of investments needed to build meaningful long-term income power.

Rather than staying at the level of theory, I’ve highlighted two UK stocks I believe could be worth considering for investors aiming to move towards that kind of income target over time.

Cash king

Fresnillo (LSE: FRES) is not a typical FTSE 100 stock. As a leveraged play on precious metals, it can generate extraordinary cash when conditions are favourable.

FY25 showed that clearly. Revenue rose 27.6% to $4.6bn, EBITDA (earnins before interest, tax, depreciation, and amortisation) jumped more than 80% to $2.8bn, and profit before tax nearly tripled. Earnings per share increased more than fourfold year on year.

Importantly, this was achieved with average realised prices of around $43 for silver and $3,500 for gold. Despite recent weakness, spot prices remain well above those levels.

That matters because Fresnillo’s earnings power is highly sensitive to metal prices. When they move, profits don’t just rise gradually — they accelerate sharply.

A structural boost for metals

The longer-term backdrop for precious metals still looks supportive. Silver demand is driven by industrial uses such as solar, EVs, and electronics, alongside its role as a monetary hedge. At the same time, supply remains constrained due to long mine development timelines.

Gold is also benefiting from central bank demand and fiscal uncertainty, supporting the case for structurally higher prices over time.

Of course, this is not a low-risk business. Mining is operationally sensitive, and rising energy costs, falling grades, or production disruptions can quickly pressure margins even in strong price environments. Regulatory risk in Mexico is another factor investors cannot ignore.

But despite that volatility, I still think Fresnillo offers exposure to a structural precious metals trend that is far from over. That’s why I view it as one to consider alongside other long-term ISA holdings

Fallen giant

Diageo (LSE: DGE) has been one of the FTSE 100’s more painful large-cap performers in recent years.

But the key question for investors is whether this is a structural deterioration in the business — or simply a cyclical reset being mispriced by the market.

What matters is that underlying consumption trends have not collapsed. Consumers are still drinking, but they are trading down and moderating their spending rather than exiting the category entirely. That points to cyclical pressure, not a permanent demand shift.

Premiumisation — one of Diageo’s key long-term growth drivers — is also not broken. High-end brands such as Johnnie Walker, Tanqueray, and Don Julio continue to perform well, even if growth has become more uneven across price points.

In response, the group is adjusting its portfolio to meet demand where it’s strongest. This includes smaller pack formats and faster-growing ready-to-drink categories. That’s more about repositioning than strategic change.

The broader takeaway is that the market may be overpricing short-term weakness while underestimating the resilience of the underlying brand portfolio.

For long-term investors, that combination of cyclical pressure and structural strength is exactly where value opportunities tend to emerge — which is why I see Diageo as one to consider.

The post How to build a £20,000-a-year passive income from a Stocks and Shares ISA appeared first on The Twelfth Magpie.

That’s a pretty great return, I’m sure you’ll agree. But some FTSE 100 shares have performed far better in that time. Take Babcock International (LSE:BAB), Fresnillo (LSE:FRES), and Lion Finance (LSE:BGEO). A £20k lump sum spread equally across these blue chips five years ago would have turned into £129,207 over the same period.

The question is, can these high performers keep delivering stratospheric returns? Past performance isn’t a guarantee of future returns, but I think they can. Here’s why.

Defence giant

Babcock has delivered an average annual return of 14.8% over five years. As one of Europe’s largest defence companies, its shares have soared since the Ukraine war began in 2022. Earnings have jumped as regional arms spending has accelerated, driving its promotion from the FTSE 250 in March 2025.

But that’s not all. A successful turnaround strategy has also thrust Babcock’s share price through the roof. The results? A sharp reduction in debt, the sale of low-margin businesses, fewer cost overruns, and a reinstated dividend that have all reignited investor appetite.

It’s now in a much better shape to capitalise on the improving defence sector outlook. Remember, though, that supply chain issues could stall its momentum.

Gold star?

Mexican miner Fresnillo is the country’s largest gold miner. It’s also the biggest silver producer by volume on the planet. So it’s delivered spectacular investor profits as demand for these safe-haven assets has exploded.

Over a five-year horizon, the average yearly return comes in at 34.5%. But precious metal prices have buckled more recently as the US dollar has roared back. So could the party be over for Fresnillo shares? Possibly, but I’m not convinced. The buck could keep gaining momentum as interest rates likely rise.

However, there’s a plethora of reasons to expect gold and silver to bounce back and for Fresnillo to rise again. These include:

• Rising geopolitical tensions
• Slowing economic growth
• Returning inflationary pressures
• Rising jewellery demand in emerging markets
• Increasing bullion purchases from central banks

Roaring returns

Like Babcock shares, Lion Finance’s stock traded on the FTSE 250 until very recently (March, in fact). Its share price growth has put those of high-flying UK banks like Lloyds and Barclays firmly in the shade. With dividends added in, the average annual return over five years is an extraordinary 64.4%.

This reflects Lion’s focus on developing markets Georgia and Armenia. Rapid economic growth here has supercharged the bank’s revenues and profits, and delivered those stunning share price gains. The bank’s net income has soared around eight times since the pandemic, reflecting low product penetration and strong economic growth in its territories.

A slowdown following the Iran war could impact near-term performance. But given its huge structural opportunities, I expect more blistering returns from Lion Finance shares over the next five years.

The post Fancy turning £20k into £129,207? Consider these FTSE 100 stocks to buy appeared first on The Twelfth Magpie.

Against the backdrop of the Iran War, investors’ appetite for riskier assets like equiries crumbled. ISA users didn’t even need to buy any shares to utilise some or all of their £20k yearly allowance. Just depositing cash was enough. Yet investor appetite remained muted.

Given the huge discounts many stocks now trade on, this is a missed opportunity, in my view. History shows that quality stocks always recover strongly in value when confidence in the stock market improves. Buying these cheaply can supercharge one’s returns over time.

It’s not too late to go bargain-hunting with a Stocks and Shares ISA though. Here are just twocheap FTSE 100 stocks that I think demand a close look.

Fresnillo

Precious metals stocks like Fresnillo (LSE:FRES) have had a bumpy ride of late. The reason? Dollar-denominated commodities like gold and silver have slumped as the US currency has gained momentum.

This leaves some tasty bargains to consider. This particular FTSE 100 miner now trades on a forward price-to-earnings growth (PEG) ratio of 0.4. Any sub-1 reading implies excellent value.

Despite their recent blip, gold prices are up 176% over the last five years. In my view, investors can expect further strong gains over a longer time horizon. Central banks are tipped to keep buying bullion to diversify their currency holdings and guard against risk. I’m also expecting demand from retail and institutional investors to keep rising as geopolitical and macroeconomic issues linger.

Buying Fresnillo shares does expose stock investors to the unpredictable business of mining and that’s a risk that can’t be shrugged off. But the Mexican company’s huge operational footprint means less risk than most other UK mining shares.

Sage Group

Over six months, Sage (LSE:SGE) shares have dropped a painful 25% in value.

Like Fresnillo, the software firm’s dropped sharply since the start of the Iran War. In this case, worries over company tech spending as inflation rises and growth slows has hit the stock.

But that’s not all pushing Sage’s share price lower. It’s also been a victim of recent AI-related volatility — could demand for its accounting and payroll software slump if businesses choose to do these processes with AI?

The threats are higher, no doubt, than they were six months ago. However, I feel the scale of the sell-off is overblown. Sage now trades on a forward price-to-earnings (P/E) ratio of 18.7 times. That’s significantly below the 10-year average of 31–32.

I feel the company’s strong long-term outlook remains intact. More and more businesses are digitalising their operations, and by embracing AI itself Sage is better placed to seize this opportunity. I think considering the FTSE 100 share at today’s low price is worthwhile.

The post Consider these FTSE 100 bargain shares in a Stocks and Shares ISA! appeared first on The Twelfth Magpie.

By investing in these industry titans, a portfolio automatically benefits from a variety of advantages, including proven business models and substantial economies of scale.

Over the long term, having this upper edge can help deliver some robust gains for investors. So with that in mind, let’s explore how someone with £5,000 can start building wealth with the FTSE 100.

Diversified passive growth

One of the easiest ways to invest in the FTSE 100 is with a low-cost index tracker. Within a single transaction, a portfolio becomes instantly diversified across all 100 of the UK’s large-cap companies, granting some level of exposure to almost every industry.

Historically, investors following this strategy have earned an average of around 8% a year. But as previously mentioned, 2025 was an exceptional year. And investors went on to earn a chunky 26.1% total gain, transforming £5,000 into roughly £63,05 in just 12 months!

Maximising returns

Last year’s 26.1% total return for index investors was impressive. But it pales in comparison to what some stock pickers achieved in the same time frame.

Take Fresnillo (LSE:FRES) as a perfect FTSE 100 example to consider. The Mexican gold and silver miner was perfectly positioned to capitalise on the enormous tailwinds driving up demand for precious metals.

Higher inflation paired with rising geopolitical tensions enabled the group’s revenue to charge ahead by 30.5% in 2025. But since operating expenses remained largely fixed, the group was able to exercise exceptional operating leverage. And consequently, total net income skyrocketed by 594.3% from $226.7m to $1.6bn!

With that in mind, it’s no wonder the share price erupted by more than 430%, transforming £5,000 into over £26,500. And that’s before counting dividends!

Still worth considering

With demand for precious metals remaining strong in 2026, the price of gold has continued to climb, with silver remaining largely stable at elevated levels. And with both commodities continuing to trade at record high levels, Fresnillo looks once again primed to deliver some powerful profits in 2026.

However, whether that will translate into further explosive share price gains isn’t guaranteed. Why? Because these growth expectations may already be baked into the share price. And even if gold and silver prices continue to climb, Fresnillo’s production volumes have actually been steadily suffering as a result of falling ore grades at its mines.

With management investing heavily in late-stage exploration projects as well as executing international acquisitions, production volumes are expected to eventually get back on track. But whether or not precious metal prices will still be elevated by then is the main risk investors need to carefully consider.

Overall, I’m not convinced that Fresnillo will be another four-bagger for investors in 2026. But it goes to show that by investing in the right ones, stock pickers can achieve jaw-dropping returns that leave passive index investors in the dust.

The post How to invest £5,000 in the FTSE 100 today appeared first on The Twelfth Magpie.

Macro reset

Over the past few weeks, many investors have been puzzled by the lack of strength in precious metals following heightened geopolitical tensions in the Middle East. In fact, prices have been relatively subdued.

Now, with a temporary ceasefire in place, metals are beginning to move higher again. So what has actually been driving the volatility?

Part of the explanation may lie in positioning. When silver surged to around $120 before falling sharply by 30% in a single session, a significant amount of speculative excess was flushed from the market. That kind of move tends to reset positioning and remove froth.

But beneath the surface, the broader macro backdrop remains largely unchanged. US debt has continued to climb, moving beyond $39trn, while the dollar has been gradually weakening over the past year.

Historically, a softer dollar tends to be supportive for precious metals as global investors seek alternative stores of value.

Silver story

Beyond the short-term noise, the more important driver for silver is the depth and breadth of industrial demand.

This is no longer a single-sector story. Silver now sits inside a wide range of critical technologies — from advanced electronics and data infrastructure to defence systems, EVs and renewable energy components. In many of these applications, there’s no simple substitute without a loss of efficiency.

What matters more, however, is the supply side.

New production cannot respond quickly. Developing a mine is a slow, capital-intensive process that can take well over a decade from discovery to full output. Even when prices rise sharply, output does not adjust in real time.

That creates a structural imbalance: demand is increasingly diversified and growing, while supply remains rigid. In fact, the market has spent multiple recent years in deficit, with demand consistently running ahead of new supply.

This is why price volatility can look extreme in the short term, yet the underlying market can still tighten over time.

Risks

Fresnillo is not immune to structural risks, even in a strong metals environment. The most immediate pressure point is energy costs, which represent the largest component of a miner’s cost base.

Recent volatility across energy markets is likely to lead the industry to increase hedging activity in future. This could potentially lock in a higher long-term cost base.

As always, mining remains capital-intensive, cyclical, and sensitive to both input costs and operational execution.

What’s the verdict?

The key question now is whether the worst of the sell-off is over and whether gold and silver have found a level of support after recent volatility. That remains uncertain.

However, Fresnillo’s latest results highlight a very different point: even at current prices, the business is generating substantial cash flow and record dividends.

This is a classic high-volatility, high-leverage miner. Prices will swing sharply, but the underlying cash engine is already working. For investors willing to tolerate the volatility, it remains a stock worth considering.

The post Fresnillo share price rebounds as a FTSE 100 top mover after a 30% sell-off — what’s next? appeared first on The Twelfth Magpie.

In fact, someone who put £60,000 to work in a SIPP at the start of the 2025/26 tax year could now be sitting on close to £250,000 today. Here’s how.

Unleashing the power of a SIPP

Not everyone in Britain has the luxury of earning enough to use up the full £60,000 annual SIPP allowance. But for the higher earners looking to build retirement wealth, the 2025/26 tax year has proven to be exceptionally lucrative.

After 20% tax relief, a £48,000 deposit is automatically topped up to £60,000 by the government. And while higher earners can claim an additional 20%, that money isn’t automatically added to the SIPP but rather awarded at the end of the tax year. So to keep things simple, let’s ignore this extra relief.

Looking back to roughly 12 months ago, the FTSE 100 took a chunky tumble following the announcement of widespread US tariffs.

However, the smart investors who used their recently refreshed allowance to capitalise on the chaos with a tracker fund have gone on to earn a staggering 39.7% total return, transforming £60,000 into £83,820.

But for some stock-pickers, the gains have been even more explosive.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

A staggering result

With geopolitical uncertainty sending demand for precious metals like gold through the roof, Fresnillo (LSE:FRES) shares have skyrocketed since 7 April, climbing a staggering 312%!

That means even before dividends, anyone who invested £60,000 in a SIPP last year is now sitting on a nest egg worth roughly £247,200 – more than double the size of the median UK pension pot.

This goes to show that by picking the right stocks and making use of the £60,000 SIPP allowance, even if it’s just a small portion of it, investors can unlock an enormous amount of wealth.

Still worth considering?

The mining giant continues to benefit from both surging silver and gold prices. And looking ahead, management appears confident that precious metal prices will remain elevated in 2026, driven by both higher demand for traditional safe haven assets, as well as higher demand from the industrial sector.

That certainly sounds encouraging. But then why did Fresnillo shares drop recently on the back of its latest record results?

The answer most likely is that all of the expected growth in 2026 is already baked into the share price. And consequently, if geopolitical and trade tensions cool, gold and silver prices might actually retreat, sending Fresnillo shares plummeting rather than surging.

The impact of lower metal prices is only amplified by the fact that the group’s production volumes are actually projected to fall this year. And while the company does have several promising projects in late-stage exploration, it could still be several years before they enter commercial production.

With that in mind, the risk-to-reward ratio surrounding Fresnillo shares doesn’t look particularly enticing to me right now. But the good news is there are plenty of other promising growth opportunities for UK investors to explore for their SIPPs in the new tax year.

The post £60,000 invested in a SIPP on 7 April 2025 could now be worth… appeared first on The Twelfth Magpie.