We examine the returns of gold mining stocks, gold, and a diversified portfolio of U.S. stocks over a period from 2006 to 2015. We find that the return on gold mining stocks is explained more by the return on gold than by the return on stocks. Because gold mining stocks are more like gold than...

If an asymmetric relation exists between the prices of gold and gold mining stocks, then these firms possess real option characteristics, and therefore, a premium should be added to their valuation. This article examines this proposition, by firstly, using quantile regressions, which are ideally...