Gold
This industry focuses on mining a rare, malleable metal that is primarily valued as a global store of wealth, a currency hedge, and a material for luxury jewelry.
Why it exists
Gold-specific businesses focus on a metal with unique monetary, jewelry, and investment roles.
Why it’s necessary
Gold functions as a store of value and hedge against currency debasement and macro risk. It’s also a cultural and luxury good.
Key components
Primary gold mines
By-product gold operations (from copper, etc.)
Refiners and mints
How to evaluate businesses
Look closely at all-in sustaining costs, jurisdiction risk, reserve replacement rates, and capital discipline. Evaluate management’s track record through cycles and their approach to dilution and acquisitions. Price sensitivity is high, so operating leverage cuts both ways. Gold’s price per ounce also weighs heavily.
How the industry could be improved
Less empire-building M&A, more disciplined capital allocation, better ESG performance, and clearer communication of value creation vs just “ounces produced.”