(Kitco News) – Gold has been on an absolute tear in 2024, hitting record high after record high and surpassing a price of $2,600 per ounce for the first time in history after the Fed shocked markets with a 50 bps rate cut. But as many precious metals investors can attest, gold stocks have been left behind.
“As we write, gold has surged past the $2,500 mark for the first time in history, an event that would seem to herald a golden age for gold stocks,” wrote analysts at Goehring & Rozencwajg. “Yet paradoxically, these stocks have seldom been cheaper. What underlies this dissonance, and what might it portend for the future?”
While gold has enjoyed a nice upward trend since 2015 and now trades more than 30% above its 2011 peak, gold equities “have failed to follow suit,” they noted.
“The NYSE Arca Gold Bugs Index (HUI), a benchmark for gold stocks, languishes at 312, more than 50% below its September 2011 high,” the analysts highlighted. “Even more striking, the HUI today is only 10% above its August 2016 level—when gold was a mere $1,300 per ounce.
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