George Noble
Investment Writer, Former Fund Manager at Fidelity, Former Assistant to Peter Lynch
Gold mining stocks are worth owning heavily because the sector is generating extraordinary profits at current metal prices. Per Tavi Costa, gold miners are doing more share buybacks than at any point in history, on a scale never seen before, as a direct result of that profitability. You can't own enough gold stocks in view of what is coming. x.comÂ
Gold and precious-metals miners are at the start of a new bull market, judging by the crowds and packed meeting schedules at the 2026 Precious Metals Summit in Beaver Creek. buzzsprout.comÂ
Gold miners, unlike gold itself, turn a higher gold price into compounding cash returns. On a path to $8,000 gold, margins would widen far beyond today's roughly $2,400 an ounce even if all-in sustaining costs rose a third to $2,650. Free cash flow per share is at a record of about $15.70, roughly tripled since 2024, and the industry is buying back stock rather than mines, a combination never seen before. Relative to the S&P 500, miners have never been cheaper, not in 2008, 2015 or 2020. x.com … Show more
Oil's undervaluation relative to gold, which @TaviCosta says points to structurally higher natural resource prices, is a clear negative for gold miners. x.comÂ
Gold miners' record margins and sustained central-bank gold buying support the sector's bullish setup. Average AISC margins reached $3,076/oz in Q1, up 134% year over year, per the World Gold Council; gold remains above $4,100/oz. Central banks bought a record 289 tonnes in Q2. The watched bull-flag trigger for GDX is $89.76. x.comÂ
Gold miners look like most of the damage is done: gold is down over $1,500 from its top and miners about 40%, with sentiment and positioning near capitulation. Gold's Daily Sentiment Index fell to 14% bullish, speculative open interest is below the late-2015 bottom, the miners' bullish percent index hit 0% and gold's RSI is the lowest since October 2023. Gold could still fall on Hormuz, dollar strength and seasonality, but Chinese buying, de-dollarization and miners' cash flows remain. x.comÂ
Gold miners have further to fall because gold is acting as just another risk asset. Rising oil, rising yields and a stronger dollar are pressuring gold, silver and the precious-metal miners. x.com x.comÂ
Royal Gold is a strong buy because it owns the landlord's position in gold rather than operating the business. It finances miners in exchange for royalties and streams, collecting cash flow while someone else does the hard work, with no labor costs, equipment or environmental liability, just margins. x.comÂ
Gold miners have not yet priced in what record gold prices mean for the sector, and the window to get in is shrinking. Newmont beat Q1 profit estimates even though output fell, showing the gold price tailwind is covering operational shortfalls; earnings should rise further when production normalizes. The majors have pricing power they have not had in years and operating leverage is building, while most investors remain in tech. x.com x.comÂ
Gold miners Agnico Eagle, B2Gold and Newmont are worth buying aggressively because, per Willem Middelkoop (@wmiddelkoop), gold mining shares are dirt cheap again compared with gold. x.comÂ
Domestic precious-metal miners are favored, because as gold moves into its next leg up, things will get rough in some places and some governments will get greedy. @CandidMacro adds energy supply issues at mines in Mali and probably Australia. Favorites are Coeur Mining, Hecla Mining, Endeavour Silver, Blackrock Silver and FGOVF. x.com x.com x.comÂ
