Mark A. Johnson and Douglas H. Lamdin researched the price movement of Gold mining stocks versus Gold and large-cap U.S. equities. Their research looked at three exchange traded funds from May 2006 to May 2015.
In summary Gold mining stocks were more correlated to Gold than to large-cap U.S. equities. However, Gold was a better portfolio diversifier than Gold mining stocks. The research also showed that neither Gold nor Gold mining stocks were a “safe haven” in times of equity market turmoil.
The full journal article can be found in the Q3 2016 issue of the CAIA Association’s Alternative Investment Analyst Review. Click for journal article.