Gold Stocks - Fantasy vs Reality

From goldpriceforecast.com

With mining costs stable and gold rising, logic suggests that mining companies should reap the benefits. But history tells otherwise. "There is more money to be made in gold stocks compared to gold because gold stocks benefit from a leverage factor that potentially produces gains more favorable than holding gold itself." At the end of 2023, the cost to mine gold was estimated at $1342 oz. (World Gold Council, Tomlinson; 16 May 2024). With gold at the time somewhere near $1950 oz., the implied gross margin was $600 per ounce. As the gold price rises, it is assumed that the mining costs would remain relatively ... (full story)