Gold prices have been hitting record highs with rising inflation and geopolitical tensions.

Naturally, this has shone a spotlight on all things gold-related, from futures and ETFs to gold mining stocks.

But here's the kicker: while gold prices are soaring, some gold mining stocks aren't keeping up.

Why the disconnect, and how can you navigate this golden maze? Let's break it down.

Takeaways：

• Despite record-high gold prices, some gold mining stocks haven't kept pace.

• Various factors influence miners' performance, and the All-in Sustaining Costs (AISC) is a key metric for assessing operational efficiency.

• A deeper insight into the companies is essential for investing in gold miners compared to following gold prices solely.

1. Gold Miners aren't always Golden

Typically, gold mining stocks offer greater leverage than gold itself. This isn't unique to gold; it's common in commodities.

For example, oil company stocks usually fluctuate more than crude oil prices, and the same goes for companies dealing in copper or aluminum.

This is because mining companies operate with higher leverage, needing massive investments in equipment and operations.

Plus, stock prices are often driven by investor sentiment and market expectations, making them even more volatile.

However, this time around, the script has flipped. In the current gold bull run, mining stocks are lagging.

Take Newmont Mining (NEM) and Barrick Mining (B), which rank among the top two in the world in terms of production:

Note: Barrick changed its stock ticker to B, rather than the more recognizable GOLD, in May 2025.

From early 2024 to May 2025, gold prices shot up over 60%, Newmont only climbed about 30%, and Barrick barely hit a 10% rise.

2. The All-in Sustaining Costs (AISC)

Running a mining company is far more complex than just riding the wave of commodity price changes.

Various factors affect a mining company's performance, including the location of the mines, mining conditions, and management leadership.

For instance, open-pit mines are cheaper to operate than underground mines, and mines in North America and Europe typically have better infrastructure and stability than those in politically unstable regions like parts of Africa.

Even among mining stocks, performance varies significantly. Agnico Eagle Mines (AEM), a Canadian-based company, saw its stock price more than double in the same period.

Source: moomoo. Data as of May 9, 2025.

Investing involves risk and the potential to lose principal. Past performance does not guarantee future results. This is for information and illustrative purposes only. It should not be relied on as advice or a recommendation.

To evaluate a mining company's prowess, consider its All-in Sustaining Costs (AISC).

This metric covers not just production costs but everything needed to keep operations running—capital expenditures, exploration, and environmental management.

For example, Barrick's AISC soared from $1,000 per ounce in 2020 to $1,775 by the first quarter of 2025, an increase in cost of nearly 80%. In contrast, AEM's AISC was under $1,200 by early 2025.

Only a few companies like AEM have been able to achieve such significant excess returns due to their competitive cost structures.

Since 2016, the discount of gold mining stocks relative to gold prices has continued to widen, reaching a nearly 20-year high in 2025.

Source: VanEck.

Investing involves risk and the potential to lose principal. Past performance does not guarantee future results. This is for information and illustrative purposes only. It should not be relied on as advice or a recommendation.

3. Investing in Gold on moomoo

The data indicates that investing in gold mining stocks merits careful consideration of companies with high-quality operations and strong cost advantages.

Otherwise, there is a risk of sub-optimal market performance compared with industry peers.

If you don't have the time or resources to analyze each mining company, ETFs that track gold prices might be appropriate.

Investors can use Moomoo’s Thematic ETF feature to find related products.

Here's how: Markets > ETFs > Thematic ETFs > Gold ETFs.

It's important to note that some ETFs track gold prices, while others track gold mining stocks, and some even include leverage. Be sure to evaluate your investment options based on your specific investment objectives and risk tolerance.