While innovative sectors such as artificial intelligence consistently grab headlines, few industries have been as holistically profitable as gold. Heading into the tail end of summer, the yellow metal was already a star asset, trading around $3,400. However, in the trailing month, the precious metal swung up about 10%, demonstrating that it still potentially has legs left.
Subsequently, savvy investors are increasingly tuning into the mining ecosystem. One factor that makes miners so intriguing to long-side speculators is the underlying supply crunch. Per a Benzinga report, gold mining is an incredibly taxing endeavor. Specifically, profit margins are low while operations are capital-intensive. Perhaps most importantly, the lead time of 10 to 20 years imposes substantial risks.
