Endeavour Mining plc T.EDV

Miners ticking down year after year

[Goldbug2703]

Hope for a constructive discussion.

Have you noticed gold miners are struggling to rise substantially when gold is rising. Each time gold is retracing, miners are losing way more than what they gained when gold was going up. Here is an example for GDX for each time gold reached 1950.

Gold reached 1950$ on

29 jul 2020: GDX 43.1
6 nov 2020: GDX 41.4
5 jan 2021: GDX 38.5
4 mar 2022: 37.4
22 apr 2022: 36.9
1 feb 2023: 31.7
21 mar 2023: 30.0

So for the same price of gold today as on the 29th of July 2020, miners have lost 13$ or 30%.

This is sad and give no hope for the miners. I guess we need like 2500$ to get the same price as in 2020. What is the problem? Are gold miners a hated and dead investment? Or is it too much manipulated?

[mercedesman]

The lag on equities is frustrating for sure.  However... 1.  Miners profits were not what was expected in the past several years - due to inflationary costs (e.g price of oil), political issues, etc.  (I would argue that EDV has faired better than most).  Increased gold prices have, in many cases, only covered inflationary costs making profits flat.   2. M&A