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IPFS News Link • Gold and Silver

Visualizing The Value Gap Between The Gold Price And Gold Miners

• https://www.zerohedge.com, by Tyler Durden

In this graphic, Visual Capitalist's Bruno Venditti illustrates the evolution of gold prices since 2000 compared to the NYSE Arca Gold BUGS Index (HUI), which consists of the largest and most widely held public gold production companies. The data was compiled by Incrementum AG.

Mining Stocks Lag Far Behind

In April 2024, gold reached a new record high as Federal Reserve Chair Jerome Powell signaled policymakers may delay interest rate cuts until clearer signs of declining inflation materialize.

Additionally, with elections occurring in more than 60 countries in 2024 and ongoing conflicts in Ukraine and Gaza, central banks are continuing to buy gold to strengthen their reserves, creating momentum for the metal.

Traditionally known as a hedge against inflation and a safe haven during times of political and economic uncertainty, gold has climbed over 11% so far this year.

According to Business Insider, gold miners experienced their best performance in a year in March 2024. During that month, the gold mining sector outperformed all other U.S. industries, surpassing even the performance of semiconductor stocks.

Still, physical gold has outperformed shares of gold-mining companies over the past three years by one of the largest margins in decades.

Year Gold Price NYSE Arca Gold BUGS Index (HUI)
2023 $2,062.92 $243.31
2022 $1,824.32 $229.75
2021 $1,828.60 $258.87
2020 $1,895.10 $299.64
2019 $1,523.00 $241.94
2018 $1,281.65 $160.58
2017 $1,296.50 $192.31
2016 $1,151.70 $182.31
2015 $1,060.20 $111.18
2014 $1,199.25 $164.03
2013 $1,201.50 $197.70
2012 $1,664.00 $444.22
2011 $1,574.50 $498.73
2010 $1,410.25 $573.32
2009 $1,104.00 $429.91
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