The difficulty in investing in the gold industry is often the element of timing that is required with it. Much like any other cyclical industry dependent on a commodity, we want to buy when gold prices are low and sell when gold prices are high.
With prices being elevated for a few years now, gold companies have certainly benefitted from higher realized prices. However, inflationary pressures have impacted operating costs and as a result they aren't really reaping the benefits on the bottom line.
This is generally why we will stick to a streaming company like Foundational Stock Franco Nevada. They aren't exposed to operating costs which tends to make earnings a bit more reliable. However, with the issues they're going through right now
in Panama, even they aren't safe from short-term volatility.
Over the years, I've become much more comfortable simply looking to invest in streamers and royalty companies like Franco Nevada and Wheaton Precious Metals versus actual gold producers.