Here's to hoping that she's right!
Oct. 14, 2011, 12:01 a.m. EDT
Opportunity knocks in gold, silver mining stocks
Mining stocks have underperformed metals
By Myra P. Saefong, MarketWatch
A worker at the Ariab mine operated by Sudan and Canada’s La Mancha Resources.
Gold mining stocks have lagged rising gold prices as economic worries weigh on
equities.
SAN FRANCISCO (MarketWatch) — Opportunity knocks in the metals mining equity space, but wary investors are too afraid to open the door.
It’s not that investors haven’t noticed that metals mining shares have severely lagged the performance in gold and silver prices. The weak overall stock market has simply made investors reluctant to believe there’s a genuine profit prospect.
It’s happened before and it’s happening again.
“Whenever there is general equity weakness and risk aversion, miners underperform,” said Jeb Handwerger, editor of market analysis provider GoldStockTrades.com. The credit crisis of 2008, the 1987 stock-market crash and the European sovereign-debt crisis that started last year are all examples.
Then “when markets turn around, miners usually make huge strides far outpacing bullion,” he said.
The Market Vectors Gold Miners ETF, which provides exposure to mainly gold mining stocks, has fallen 8.4% year-to-date, compared with a 17% gain in the SPDR Gold Trust and a rise of 2.5% in the iShares Silver Trust, which are both backed by physical metals holdings. For the same period, the S&P 500 has fallen over 4%.
Since the end of last year, gold futures have added around 17% and silver futures have climbed about 2.4%.
Full article: http://www.marketwatch.com/story/opportunity-knocks-in-gold-silver-mining-stocks-2011-10-14
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