Historically, gold mining stock prices have risen more than the gold price. (Note that the reverse also holds true: when gold have fallen, gold mining stocks have fallen further.)
Gold vs. Gold Stocks in Historical Gold Bull Markets1
Source: VanEck, Bloomberg, FactSet, Barron's. Data as of September 2021.
*NOTE: Data for "Gold Stocks (Junior/Mid-Tier)" first available beginning in February 1992.
1Gold bull markets (including both cyclical and secular bull markets) = October 1971 to December 1974; August 1976 to September 1980; February 1985 to November 1987; March 2001 to February 2008; October 2008 to August 2011; and December 2015 to July 2020. “Gold” represented by Gold Spot ($/oz). “Gold Stocks (Senior/Mid-Tier)” represented by Barron’s Gold Mining Index (BGMI) from October 1971 to inception date of the Philadelphia Gold and Silver Index (XAUTR) in January 1984 and XAU to the inception of the NYSE Arca Gold Miners Index (GDMNTR) in October 1993. “Gold Stocks (Junior/Mid-Tier)” represented by the world small-cap gold subgroup index of the Dow Jones Global Index (DJGI) from February 1992 to inception of the MVIS Global Junior Gold Mining Index (MVGDXJTR) in January 2004. “Senior” miners are defined by production levels of approximately 1.5-6.0 million ounces of gold per year (“Mid-Tier” miners approximately 0.3-1.5 million ounces per year; “Junior” miners approximately under 0.3 million ounces per year).