US dollar gold prices have risen more than 13% year to date, recently hitting an all-time high of $2,100 per ounce.
Meanwhile, larger cap gold mining stocks, represented by the VanEck Gold Miners ETF (GDX), have gained just 5% so far in 2023, with the biggest names such as Barrick Gold and Newmont falling 3% and 19%, respectively (as of the closing price on December 4).
Junior gold stocks in general have fared even worse, with the VanEck Junior Gold Miners ETF (GDXJ), up a mere 4% year to date.
So, what gives?
Well to begin, rising inflation and a higher interest rate environment that has historically been supportive of the gold price has hindered miners and explorers, which have faced higher operating costs and greater difficulty in raising capital.
This has been especially problematic for the smallest explorers, many of which have needed to issue more shares at deflated stock prices, putting further…
