Gold Miners Outshine Physical Gold as Prices Reach 14-Year High
Gold prices have reached a 14-year high since 2023, but most investors are betting on the wrong asset. A recent whitepaper from Rational Equity Asset Management suggests that gold mining stocks could be where the real gains lie.
The report, titled 'Beyond Bullion: Why the miners are the more profitable way to own gold’s bull run', argues that gold miners have finally cleaned up their balance sheets. Unlike in the past when they were debt-heavy and prone to diluting shareholders during downturns, major miners like Newmont and Kinross now sit on billions in net cash.
Since 2023, a ₹1 lakh investment in physical gold has grown to about ₹2.29 lakh. The same amount invested in a gold ETF reached ₹2.53 lakh, but invested in gold mining stocks, it became ₹3.77 lakh - nearly triple the original investment.