Gold Mining Stocks Are Going Up Faster Than Gold

John Rubino profile picture
John Rubino
2.73K Followers

The past couple of years have been brutal for precious metals mining stocks. Gold and silver went down a little, while the miners went down a lot - four times as much, to be exact. That's painful but not surprising. The miners, being in effect options on the underlying metals, tend to be a lot more volatile.

gold vs gold mining stocks 2016 2018

But volatility works both ways, and starting in November, gold began to rise while the miners began to rise more.

gold vs gold mining stocks last two months 2018

With January normally being a great month for precious metals, it's possible that the miners will be among the best-performing sectors for a while. It's also possible that the outperformance will have legs, as recent financial asset volatility sends capital pouring into safe haven assets.

On a related note, gold's performance hasn't been nearly as bad as it's seemed. Even in US dollar terms, it's up over the past three years and has returned an average of over 9% a year since 2003.

gold performance gold mining stocks

This article was written by

John Rubino profile picture
2.73K Followers
John Rubino manages the financial website DollarCollapse.com. He is the co-author, with GoldMoney’s James Turk, of The Money Bubble (DollarCollapse Press, 2014) and The Collapse of the Dollar and How to Profit From It (Doubleday, 2007), and author of Clean Money: Picking Winners in the Green-Tech Boom (Wiley, 2008), How to Profit from the Coming Real Estate Bust (Rodale, 2003) and Main Street, Not Wall Street (Morrow, 1998). After earning a Finance MBA from New York University, he spent the 1980s on Wall Street, as a money market trader, equity analyst and junk bond analyst. During the 1990s he was a featured columnist with TheStreet.com and a frequent contributor to Individual Investor, Online Investor, and Consumers Digest, among many other publications. He currently writes for CFA Magazine.
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