There are 2 types of gold players effectively, producers and explorers. Besides the grading, funding usual issues associated with aspirations, if gold shoots back up to for instance 1900USD then the specs will generate multi bagger returns from the euphoria. The more stable and proven producers will also track gold but unlikely to have suce returns. However should gold return to the 1100$ then your capital destruction on the stable producer camp will be much less. Rule of thumb stuff I suppose.
Within the producer camp, you also have the god, bad and ugly. Again the highest cost producers will likely return the best capital in a gold gold run because its valuation has been the most destroyed. It is all about how risk averse one is and how long a hold one is. Long term buy and hold does not necessary mean you come out best at times. I take the approach that with any sector if I think that sector has potential, I will always buy the strongest because I would like to ride the price trend for more than just a small swing. However those with a more gun trigger happy would have minted a good or even better returns with specs with regular intervals. Horses for courses.
