Gold equities have underperformed for more than a year despite the gold price
hitting a series of new all-time highs. But things could be about to change.
"A cash build in the producers should drive growth, spur M&A and push dividends higher," said Tyler Broda, a mining analyst at Nomura. "This improving outlook has yet to be priced into gold equities, which are trading at historical lows in terms of valuation," he said. Mr Broda thinks current valuations offer an attractive entry point given market instability. "We see light at the end of the tunnel for gold equity investors."
[Add to the news the previous post about Iran, India, and China rumored to be trading in gold and that will translate to growth of gold producers I believe.]