I am bullish on Gold, but I wish to check if investing in Mining Companies can give me bigger upsides in the long run or not.
This chart will be comparing Gold price vs top7 mining companies.
Russian and Australian company have been omitted as their data could not be entered onto tradingview.
List of all gold mining companies
From the all time chart it shows that
1)certain companies have fallen more than 90% in terms of their previous % gains ( goldcorp , barrick gold)
2) some companies have stayed relatively consistent throughout but did not have the potential for strong upside during gold’s decade bull run. ( Yamana)
from weekly chart comparison shows that % gain of companies seem to closely match that of gold’s % gain prior to topping out.
Thereafter between late 2011 till present, most mining companies suffered heavier % losses than gold price.
On the daily timeframe, Ashanti Gold leads the pack and seems to match Gold price in the current recovery.
1)Gold price has fallen in the past year, but gold mining companies have fell harder.
2) Current recovery in gold price is superceded by Ashanti Mining. Investors who believe in further upside for Gold in the shorter term may see stronger movement via Ashanti Mining ( South Africa).
3) Yamana Gold ( Canada) seem to have the least fluctuation throughout. It may not be ideal for investors seeking explosive growth.
4) On a further horizon, Goldcorp and Barrick, both with highest market cap, may present higher potential since it has fallen more than 90% gains , measured from the height of its % gain in 2011. On the assumption that Gold price will one day return to create higher highs and new historical highs, these 2 companies may then play catch up and recreate the rapid bullish prints as seen within the last decade. Investors are eyeing to capture profits from ‘mean reversion’ of gold price.