...that's why I think Gold, not Gold stocks, are the Buy and Hold.
...Gold majors have not performed well over an extended time (relative to Gold), while Gold juniors can provide multi-bags when purchased at an appropriate time, failing to do so (at appropriate time) will be disastrous.
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"Fun facts" about Newmont - and the challenges of being a big gold mining company
In 2015, $NEM's gold production was 5 million ounces of gold.
For 2025, $NEM is now forecasting 5.6-6 million ounces of gold production after spending more than $27 billion USD to acquire GoldCorp and Newcrest Mining in recent years.
Gold mining is a very tough business and maintaining stable production or even growth as a major gold miner has become extremely difficult. Many of the best gold mines are old, depleted and new major discoveries have been trending down for 25 years. We've also seen a sharp decline in mine and reserve grades and massive cost inflation. A dangerous cocktail.
So it should come as no surprise to anyone investing in this tough and highly cyclical space that most gold miners have failed to outperform the metal and deliver alpha.
That won't change in the future.
Gold price (GLD) vs. Newmont (NEM) vs. Barrick Gold (GOLD): 15-year chart
