NEM
📉 Large gold miners like Newmont are significantly underperforming compared to the soaring gold price and smaller, well-managed peers.
📊 The performance gap highlights potential issues within large miners, possibly related to management or diseconomies of scale, making ETFs like GDX less attractive.
⚠️ Investors seeking gold exposure might consider physical gold or a curated basket of smaller, better-performing miners instead of relying on large-cap weighted ETFs.
@Academiadeinversion:
“For example, I’m looking here to be sure, for example, Newmont, which is the largest in the world, the GDX is more or less +26, well, the largest miner in the world, which is Newmont, is +25. Barrick, which is the second, is +22. But the good ones, the ones that are truly well-managed, make cash flow, WAF is +60 year to date. Year to date, three months, WAF +60. Aura +52. Lundin Gold, which I don’t hold, is also at +40. So the good ones are mega-flying. The sector in general, I say, is due to a couple of large ones that have a lot of weight, but there are many that are, I mean, they are killing it. And I insist, totally normal because even if gold falls and corrects somewhat and goes to, say, 2900, it doesn’t matter. It’s an unprecedented margin expansion in several decades. The problem with gold ETFs is that, as it’s a bad sector in aggregate, mining ETFs don’t usually do very well because even though they have the good and the bad, and often the bad ones are large, they have more weight. That’s why ETFs usually do quite poorly.”
Watch the exact part of the video where @Academiadeinversion talks about Newmont Corporation here:
Watch the video on YouTube
Read more articles analyzing Newmont Corporation (NEM) at the following link. NEM stock.
