Gold Equities: Value or Value Trap?

Article Stock Quotes (5) Comments (0)

According to Ron Stewart, a researcher at Dundee mining research, gold equities are cheap. On a price basis, gold equities are below their 5-year norm. 1-year valuation also suggests "compelling" valuation, thinks Steward.

Market Vectors Gold Miners ETF (NYSE: GDX) is lower by 31 percent year-to-date. This compares to the SPDR S&P 500 (NYSE: SPY) which is higher by close to 5 percent.

Stewart favors Goldcorp (NYSE: GG), along with Canadian miners Osisko, Alamos, Dundee, Kirkland Lake.

A number of gold miners are set to report earnings this week, including Barrick Gold Corporation (NYSE: ABX) and Newmont Mining Corp. (NYSE: NEM).

Last week an analyst at TD said Goldcorp production may grow 30 percent by 2014 and Barrick production may fall 3 percent.

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• UPDATE: Citi Raises PT on Micron Technology (MU) to $19
• Oxford Industries (OXM) Tops Q1 EPS by 4c, Trims Top-End of FY13 Revs Outlook
• Coal on Watch as Top-Exporter Expected to See Lower Prices in June (ACI) (CNX) (BTU)

Create E-mail Alert Related Categories

Commodities, ETFs

Related Entities

Standard & Poor's, Earnings

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?