RESOURCE INSIGHT -FEBRUARY 2016
Gerry Brockelsby, CFA, Chief Investment Officer.
The Gold Sector is Leading the Way
The gold price has gained 12.1% year to date. Over the same time frame large cap gold stocks are up 27.2% more than double the bullion price as represented by the S&P/TSX Global Gold Index. The relatively strong results from gold equities reflects how deeply undervalued mining stocks had become. In our December ResourceInsight we commented: “we expect that a modest improvement in commodity prices could have a very positive impact on the price of selective mining stocks due to the attractive valuations”. We believe this start to the year in the gold sector is the leading edge to a broader recovery in the mining industry.
Gold Price
Source: StockCharts.com, February 8, 2016
S&P/TSX Global Gold Index
Source: StockCharts.com, February 8, 2016