I’ve been searching for stocks in the gold industry to help me hedge against rising inflation. Because these stocks tend to be inverse the market, I just assumed that they would thrive or at least hold up well during a recession.
After searching through about 40 gold stocks I noticed that a good chunk of them struggle during recessions instead. I know that just because a stock is in the gold industry does not mean it is directly correlated to the value of gold vs the dollar.
So my question is basically why do some gold stocks fall during a recession? Does it depend on the business model? Where they mine gold from?
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