{"id":998,"date":"2012-12-27T13:43:34","date_gmt":"2012-12-27T18:43:34","guid":{"rendered":"http:\/\/www.juniorminingnews.com\/?p=998"},"modified":"2012-12-27T13:43:34","modified_gmt":"2012-12-27T18:43:34","slug":"why-gold-mining-stocks-perform-poorly","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=998","title":{"rendered":"Why gold mining stocks perform poorly"},"content":{"rendered":"<p><strong>By\u00a0Tyler Laundon<\/strong><br \/>\n<em>Wyatt Investment Research<\/em><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignright size-full wp-image-999\" title=\"minechart160\" src=\"http:\/\/www.juniorminingnews.com\/wp-content\/uploads\/2012\/12\/minechart160.jpg\" alt=\"\" width=\"160\" height=\"98\" \/>When the price of gold is rising, gold equities are typically the place to invest. That is of course unless their costs are rising even faster. And that&#8217;s been the problem over the last year-and-a-half.<\/p>\n<p>In short, company-specific challenges break down the \u201cleverage\u201d argument for gold mining stocks.<\/p>\n<p>When miners feel their margins are under pressure, their stocks get slammed. Lower profits per ounce drawn out for years in the future wreak havoc on most financial models, and therefore crush target prices for mining stocks.<\/p>\n<p>One need only look at a three-year performance chart of the\u00a0Junior Gold Miners ETF (NYSE:GDXJ)\u00a0versus gold to see how this has played out. Gold is up around 55%, but the GDXJ is slightly negative.<\/p>\n<p><strong><a href=\"http:\/\/www.wyattresearch.com\/article\/why-the-pitiful-performance-of-gold-mining-stocks\/29162\" target=\"_blank\">Read the full article . . .<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When the price of gold is rising, gold equities are typically the place to invest. That is of course unless their costs are rising even faster. And that&#8217;s been the problem over the last year-and-a-half.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/998"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=998"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/998\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}