💰 GDX ETF — MARGINS, NOT JUST GOLD, ARE DRIVING THE RALLY ⛏️🟡
The real story behind the VanEck Gold Miners ETF ($GDX) isn’t just higher gold prices — it’s exploding miner margins.
📈 What’s happening?
• $GDX surged ~153% in 2025, massively outperforming physical gold
• The driver: All-In Sustaining Margins (AISC spreads)
• Gold prices climbed faster than mining costs → profits expanded fast
🧠 Why margins matter
Gold miners don’t earn the gold price —
They earn Gold Price – AISC
When gold rises and costs lag:
➡️ Margins widen
➡️ Earnings surge
➡️ Equity valuations rerate
That’s exactly what’s happening now.
⚡ Why GDX can outperform gold
• Gold = store of value
• Miners = leveraged earnings machine
• Every $100 move in gold hits miner profits harder than bullion
As long as:
✔️ Gold stays elevated
✔️ Costs remain controlled
👉 GDX stays structurally strong.
📊 Big Picture
This isn’t speculation — it’s operating leverage at work.
If gold consolidates at high levels, miners may continue to outperform bullion.
👀 Assets traders are watching:
$G | $PAXG | $XRP
