Are We Heading into a Golden Age?
ASX gold companies have tripled in value, now outranking household names as investors rush to the ultimate hedge.
This development excludes Newcrest Mining, previously Australia's largest listed gold company, taken over by Newmont Corporation in late 2023. Newmont's market capitalisation increased from $70bn to $165bn over this period.
- Nine gold companies are now listed on the ASX with a market capitalisation of over $5bn, up from two at the end of 2023.
- These companies, many not household names, have a market capitalisation exceeding that of companies like Penfolds owner Treasury Wines, Bank of Queensland, and Ansell.
The rapid rise in gold price drives this growth, with a gain of US$1000 (32%) in less than 2 months and US$2,500 (141%) in the last two years.
The move in the gold price has been extraordinary.
Author's summary: Gold companies' value triples, driven by rising gold prices.