BlockBeats News, October 10. This year, the biggest dark horse in the US stock market is not in the AI field nor in Bitcoin-related stocks, but in the gold mining industry. With the price of gold surging 52% since January and recently breaking the $4000 per ounce mark, gold mining stocks have experienced an epic rally. The S&P Global Gold Index has skyrocketed by 129% this year, far outperforming the tech and cryptocurrency sectors. Giants like Newmont and Barrick have seen their stock prices double, making them the biggest winners in the market.
The success of gold mining stocks is attributed to the profit leverage effect brought about by the rising gold price. For gold mining companies, with fixed costs remaining constant, the additional income from the rise in gold price can almost be converted into pure profit, resulting in ample cash flow. However, seasoned investors are wary of a repeat of the 2011 gold bubble, fearing issues like excessive mergers and acquisitions and inflated executive compensation.
BiyaPay analysts pointed out that the success of the gold mining industry once again validates the investment logic of “value restoration,” especially amid heightened global economic uncertainty, where the demand for gold as a safe-haven asset continues to rise. As a platform supporting 0% fee trading for digital currencies and USDT trading of US stocks, BiyaPay not only provides users with gold futures trading but also helps investors efficiently manage diversified asset portfolios globally. With the resurgence of gold mining stocks and traditional assets, BiyaPay will continue to offer users more financial investment opportunities to help them achieve wealth appreciation in a complex market environment.
