Gold Price Surpasses $3000... "'Geumgwangju ETF' Relatively Undervalued"

Daishin Securities recently diagnosed that while the international gold price has surpassed $3,000 per ounce, gold mining stocks are relatively undervalued. As an exchange-traded fund (ETF) that investors might be interested in, they suggested the 'VanEck Gold Miners ETF (ticker: GDX)', which invests in global gold mining companies.

On the 17th, Hyunjung Park, a researcher at Daishin Securities, stated in the report titled "Gold Surpasses $3,000. Gold Mining Stocks Worth Watching at This Time," "Gold mining stocks have shown sluggish performance compared to the rising gold prices. In terms of price, they are still at an undervalued level."

Researcher Park explained, "The price of gold mining stock ETFs tends to move similarly to the profit calculated by subtracting the AISC (All-in Sustaining Cost) from the gold price," adding, "By subtracting AISC from the gold price, one can estimate the margin of gold mining companies." AISC refers to the total cost required to produce one ounce of gold.

Additionally, the natural gas off-season and the slowing wage growth trend are also considered favorable environments for gold mining stocks. He analyzed, "Among the components of AISC, wages and contract payments (23%) and electricity and fuel (14%) account for the largest proportions," and "As gold prices maintain a steady trend while wages and natural gas prices decline, it creates an environment where the operating profit of gold mining companies increases."

Accordingly, Researcher Park selected the VanEck Gold Miners ETF as an ETF of interest, explaining, "It is a product that tracks the performance of global gold mining companies. However, it is not composed solely of gold mining stocks but also includes other precious metal mining companies." It holds Newmont (11.8%), Agnico Eagle (11.7%), Wheaton Precious Metals (7.5%), and Barrick Gold (7.5%), which was invested in by Warren Buffett. The investment distribution by country is Canada (44.6%), the United States (16.5%), Australia (11.13%), South Africa (10.8%), and Brazil (7.7%).

Researcher Park stated, "Investment funds have flowed into gold last week as well as the week before," attributing this to "the ongoing tariff war triggered by Trump, increased uncertainty, and safe-haven demand." He added, "Although gold prices have broken new highs and may have short-term momentum, the current price level makes it difficult to maintain the recent elasticity."

This content was produced with the assistance of AI translation services.