According to BlockBeats, the standout performer in the U.S. stock market this year has been the gold mining sector, rather than AI or Bitcoin-related stocks. With gold prices soaring by 52% since January and recently surpassing $4,000 per ounce, gold mining stocks have experienced a remarkable rally. The S&P Global Gold Mining Index has surged by 129% this year, significantly outperforming technology stocks and cryptocurrencies. Major companies like Newmont and Barrick have seen their stock prices double, emerging as the biggest winners in the market.
The success of gold mining stocks is attributed to the profit leverage effect brought about by rising gold prices. For gold mining companies, fixed costs remain unchanged, and the additional revenue from higher gold prices can almost entirely translate into pure profit, resulting in abundant cash flow. However, seasoned investors remain cautious about the potential recurrence of the 2011 gold bubble, expressing concerns over excessive mergers and acquisitions and inflated executive compensation.
Analysts from BiyaPay highlight that the success of the gold mining industry reaffirms the investment logic of 'value return,' especially amid increasing global economic uncertainty. The demand for gold as a safe-haven asset continues to rise. BiyaPay, a platform supporting zero-fee digital currency and USDT trading for U.S. and Hong Kong stock investments, not only offers gold futures trading but also assists investors in efficiently managing diversified asset portfolios globally. As gold mining stocks and traditional assets experience a resurgence, BiyaPay aims to provide users with more financial investment opportunities, helping them achieve wealth growth in a complex market environment.
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