Gold mine = "printing press"
Gold producers are reaping substantial profits as gold prices hit historic highs, with profit margins reaching their highest levels in over a decade. Miners' earnings per ounce have reached a modern historical peak. The VanEck Gold Miners ETF ($GDX) has risen approximately 94% this year, benefiting from expectations of interest rate cuts, central banks accumulating gold, escalating geopolitical risks, and high inflation. Gold has risen nearly 40% this year, with mines being the main beneficiaries
Gold producers are now printing money. Gold prices have reached an all-time high, while costs have remained almost unchanged, resulting in profit margins at their richest levels in over a decade. Today, miners are earning more per ounce than at any other time in recent history.
As of September, the VanEck Gold Miners ETF ($GDX) has risen about 94% year-to-date, and the reasons are not mysterious. The environment is perfect, with more interest rate cuts on the horizon, central banks hoarding gold, escalating geopolitical risks, and inflation refusing to cool down. Gold has risen nearly 40% this year, with mines being the obvious beneficiaries.
Such profitability has not been seen since the gold boom of the 1970s.
