In contrast, gold-mining shares have actually declined 16% over the past year.
“We think that there are a number of reasons for this, but the main thing is that investors are putting their money into gold rather than into gold-mining shares because the mining shares have additional risks such as higher-than-expected production costs, geopolitical risks, and issues with operating the mines themselves,” Park said.
Park, though, believes that dividend payouts, which some companies are beginning to implement, and the current low valuations could help bridge the gap.
For more information on gold producers, visit our gold miners category.
Max Chen contributed to this article.