(Kitco News) - Gold prices are at all-time highs, but rising costs at the miners have tempered an equity upside, noted Neil Adshead, consultant analyst at Commodity Discovery Fund.
On Friday Kitco Mining Correspondent Paul Harris recorded Digging Deep.
Harris noted that despite the gold prices hitting all-time highs in 2024, the gold miners have not rallied. Year-to-date the gold miners index, the VanEck Gold Miners ETF, is down 3% to $29.60 a share.
Adshead noted that the big, diversified miners have much larger market capitalizations. The gold miners are not keeping pace, because they just don't make the same margins as the large copper and iron ore miners.
"[Gold miners] are not generating huge margins, so they tend to under-perform financially," said Adshead. "I even spoke to a gold company this week and he said: 'Yeah, it's all well and good that [golds at] $2,200 an ounce, but our costs have actually kept pace with the rise in the gold price, so we're not actually making any more money.'"