Chart of the Week - Gold Miners vs Energy Producers

Gold Miners Left Behind: This curious chart shows the total assets under management in US equity sector ETFs focused on energy (i.e. traditional energy: oil/gas/coal) and gold miners. AUM in energy ETFs has gone up more than 5x since the low point: part of this is clearly price-driven as surging energy prices have triggered better stock price performance and improved financial results. But clearly investors have also had a change of heart on the sector after shunning it for some time (particularly with the rise of ESG investing).

To be fair, precious metal prices have been a big fat range trade for most of the past 2 years

The standout though in this chart is the one that isn’t standing out: gold mining ETF AUM has by contrast been very sleepy. To be fair, precious metal prices have been a big fat range trade for most of the past 2 years, and at the end of the day when it comes to these commodity equity sectors, commodity prices matter.With gold itself on the cusp of a breakout, this chart begins to look very interesting, and we could easily see a stampede into gold miners if gold itself can manage to break through to new highs. Indeed, with the bull market in equities seemingly in its final throes this could end up appealing to the hoard of retail speculators still searching for their golden ticket…

chart of gold mining stock etf assets vs energy sector ETF AUM

Key point: Gold miners have been left behind.

NOTE: this post first appeared on our NEW Substack: https://topdowncharts.substack.com/Best regards,

Callum Thomas

Head of Research and Founder of Topdown Charts

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Callum Thomas

Head of Research

Callum is the founder and managing shareholder of Topdown Charts. His career background is in multi-asset investment management in New Zealand and Australia, with a focus on investment strategy and economics.

Callum has a passion for global economics and asset allocation strategy and has developed strong research and analytical expertise across economies and asset classes. Callum's approach is to deploy a blend of factors to build out a holistic picture and raise conviction. This includes valuations, monetary conditions, cyclical indicators, sentiment, and technicals. Callum believes innovation is vital to maintaining an edge through investment research and is on a constant mission to uncover and develop new datasets, indicators, and new ways of looking at the world to drive sensible and profitable decision making by portfolio managers.

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