Note: This article is courtesy of Iris.xyz
Year-to-date gold mining stocks have surged, with the Philadelphia Stock Exchange Gold & Silver Index (“gold miners”) up over 110% as of September 23rd, setting off a new “gold rush” in the eyes of investors.
From their perspective holding gold mining equities is the same as (if not better than) an investment in gold itself. This, however, is a misconception and overlooks many deficiencies in holding gold miners as a proxy for gold within portfolio allocations.
Gold miners have long been viewed as a viable substitute for gold by US investors. This is partly linked to historical restrictions of physical gold ownership in the US and limited accessibility to the market for non-institutions.