Gold Mining Stocks: The Leverage Play

Gold mining stocks offer something physical gold cannot: leverage. When gold rises, a mining company’s entire reserve base is repriced simultaneously. This is why, in every historical gold revaluation, mining stocks dramatically outperformed the metal itself. Dylan Jovine’s BTM Gold War presentation builds on this principle to identify what he believes is the single most important gold stock in America today.

As we detail in our full review of the BTM Gold War presentation, the historical data on gold mining stocks during revaluations is remarkable.

The Historical Evidence

In 1934, FDR’s Gold Reserve Act revalued gold from $20.67 to $35 per ounce overnight. The Dow collapsed 73 percent. But Homestake Mining, the largest gold miner in America, rose 474 percent. Dome Mines, the biggest gold producer in Canada, climbed 558 percent. Both companies raised their dividends straight through the Depression. In 1935 alone, Homestake mailed shareholders $56 per share in dividends on a stock that had cost $65 before the rewrite. It became the highest-priced active stock on the New York Stock Exchange.

In the 1970s rewrite, gold eventually climbed from $35 to $850, a 2,329 percent rise. But in the final two years of the mania, while gold climbed 276 percent, a basket of top junior gold miners climbed 23-fold, a 2,200 percent rise, roughly eight times the metal. And Copper Lake, a small explorer, returned more than 10,000 percent. Every $10,000 became more than $1 million.

The pattern is consistent across both rewrites: gold stocks deliver multiples of what gold itself delivers. For more on why this happens, see our article on buying gold coins vs. gold stocks.

The Leverage Mechanism

The reason gold mining stocks outperform bullion is straightforward. When gold rises $100, a coin holder gains $100 per ounce. But a mining company gains $100 per ounce on every ounce in its reserves, including ounces that will not be mined for years.

If a company has millions of ounces in the ground, a $100 rise in gold rewrites the value of the entire deposit at once. The market does not wait for the company to mine and sell the gold. It reprices the reserves immediately. This is why junior miners with large reserves but no production can see explosive moves during gold revaluations.

Jovine explains this in the context of the Arsenal, a company he describes as holding one of the richest open-pit gold deposits in the country. The company produces no revenue yet, but it owns millions of drilled, measured, and certified ounces. Every $100 gold climbs rewrites the value of the whole deposit. For more on the mining investment angle, see our article on gold mining investment.

The Arsenal: A New Category of Gold Stock

What makes the Arsenal different from typical gold mining stocks is the federal relationship. The EXIM Bank voted unanimously on May 21, 2026 to approve nearly $3 billion in financing for this project. The financing package eclipses the company’s own market cap. The company’s federal filings contain “substantial support and partnership from the Department of War.”

Jovine argues this is a new category: a gold stock that profits not just from the price of gold but from the policy of gold. The government has both the motive and the means to revalue gold, and it is already financing the company that would benefit most from that revaluation.

The government’s track record of buying stakes supports this thesis. Over the past 18 months, the federal government has become a direct shareholder in 26 companies, deploying $23.9 billion out of $205 billion authorized. MP Materials surged 226 percent. Trilogy Metals jumped 402 percent in a week. Intel soared over 500 percent. Jovine’s observation: “When this machine picks a company, the stock doesn’t drift higher. It gaps.”

The Producer: Kinross Gold

For investors who want exposure to established gold mining stocks, Jovine gives away Kinross Gold (KGC) for free. Kinross is one of the largest gold producers operating on American soil, with operations in Nevada and Alaska. Its flagship American operation is a massive Alaskan gold mine literally named Fort Knox.

Kinross trades near 12 times earnings, roughly half the market average. The metal it produces sells near $4,000 an ounce. Wall Street’s average price target sits at $40.24, about 74 percent above recent prices. Jovine notes that central banks have built a floor under gold with the heaviest buying since 1950, meaning every dollar gold holds above Kinross’s cost of mining falls almost straight to the bottom line.

The distinction Jovine draws is between producer and weapon. Kinross is a producer: it profits from the price of gold. The Arsenal is a weapon: it profits from the policy of gold. Kinross rides the wave. The Arsenal is welded to the hand that makes the wave. For more on Kinross, see our Kinross Gold analysis. For more on specific gold stock picks, see our article on gold stock picks.

The Broader Gold Stock Universe

Jovine also identifies three additional positions in his Gold War Portfolio report. The Stealth Gold Giant is one of the biggest gold producers on Earth that does not call itself a gold company. It is a copper giant whose two metals, copper and gold, are the same two metals named in the President’s mineral order. The Payout Fortress is a $100 billion mining fortress that owns one of the great copper-gold mines on Earth and pays dividends. The Enrichment Chokepoint is the only American-owned company enriching nuclear fuel on U.S. soil.

These additional positions show that the gold stock thesis extends beyond a single company. When a monetary war goes hot, wealth does not flow to one company alone. For more on the broader gold investment thesis, see our article on gold investment strategy.

Gold mining stocks have historically been the highest-leverage way to profit from gold revaluations. Whether the third revaluation arrives as Jovine predicts, the structural case for gold is strong, and the mining stocks offer the most amplified exposure.

This is not financial advice. Always do your own research before investing.