Gold Miners are back

Gold Miners are back. The Australian reports that After years spent in the shadow of gold, miners are back in favour, driven by stronger earnings and cuts to mining costs. The NYSE Arca Gold-Miners Index, which tracks 39 gold-miners, has soared 26% this year, compared with an 8.9% rise in gold and a 4.5% rise in the S&P 500. Catherine Raw from Blackrock says Gold companies just don't look as expensive as they did in previous years and you have a sentiment that is warming toward gold. Raw raised her exposure to gold-miners at the start of the year. The article also reports that many investors say the stocks remain a relative bargain. Stocks in the NOSE Arca Gold Miners Index trade at 1.3 times the net worth of their assets, higher than the record low of 0.79 in June 2013 but below the long-term average of 2.18. (VIEW LINK)

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