The SPDR Gold Shares ETF (GLD.P), which tracks the price of gold, has rallied 9.82% this year, driven by concerns about inflation and economic growth as well as geopolitical turbulence.
Yet those gains have not been reflected in the share prices of gold miners: the iShares MSCI Global Gold Miners ETF (RING.O) and the VanEck Gold Miners ETF (GDX.AX), which track the shares of gold producers, are up only 2.28% and 1.7% respectively.
"Gold prices can only help so much, if you can't produce the gold in the first place," said Islam.
Even Barrick Gold, which reported a 3% gain in gold production in the third quarter, said overall output in 2023 won't meet expectations.
"Investors seem very wary of stocks as a whole, and gold miners have been tracking that rather than what's happening in gold itself," said Casanova.
Persons:
Shannon Stapleton, Imaru Casanova, Casanova, Roxanna Islam, George Milling, Stanley, Suzanne McGee, Ira Iosebashvili
Organizations:
United States West Point Mint, REUTERS, Gold Miners, World Gold, Gold, Newmont Corp, State Street Global Advisors, Barrick, Thomson
Locations:
West Point , New York, Mexico