Gold versus gold mining stocks

GLD is a trust that owns physical gold.
GDX is an ETF index of gold mining stocks.

As you can see from the chart below, GLD has clearly been the better performer since the inception of GDX.  (GDX would perform better if dividends were taken into account.  However, it still wouldn’t make a difference.)

gld-versus-gdx

In my opinion, gold miners have spent way too much effort on mining the capital markets (e.g. you, me, your pension, etc.) and on chasing projects with terrible returns.

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One thought on “Gold versus gold mining stocks

  1. Pingback: Mine economics explained | Glenn Chan's Random Notes on Investing

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