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Gold miners' stocks outperformed physical gold by over 25% in the past year due to operating leverage.

Market News
03 Sep 2026
24/7 Wall Street
View Source
Bullish
Gold miners' stocks outperformed physical gold by over 25% in the past year due to operating leverage.

Over the past year, owning gold mining companies through the VanEck Gold Miners ETF returned 50.7%, significantly outperforming the 23.7% return from holding physical gold via the SPDR Gold Trust. This difference is due to miners' operating leverage, where rising gold prices boost profits more than the metal price increase alone. However, mining stocks carry additional risks like geopolitical issues, cost inflation, and operational setbacks. For conservative investors, physical gold is safer, while miners suit those seeking higher, but riskier, returns.

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