Miners rebound as gold prices ride hot streak

Financial Post | Business

The price of gold and the stocks of the companies that mine it have been on a hot streak this year.

Bullion has rallied about 10% since the start of the year to US$1,322.90 an ounce, a nice rebound following a crushing 2013 that saw prices fall 28% — their first decline in 12 years and the worst loss since the 1980s. The S&P/TSX Global Gold Index, which holds 37 gold exploration and mining names, has also joined in on the party, climbing 26.8% since Dec. 31.

The performance of gold stocks is notable because they are posting better returns than the precious metal itself for one of the few times in the past decade.

Gold stocks have underperformed bullion for seven straight years, mainly due to rising costs, lower margins and the introduction of new exchange-traded products that have made investing in physical gold easier.

There’s no doubt gold…

View original post 612 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s