- Posted December 5, 2013 by
Gold Mining Stocks Look Like Value Traps
US stocks have been a veritable gold mine this year. But gold mines have not. In an equity market rally remarkable as much for its uniformity as for its strength, the underperformance of gold mining stocks sticks out ever more. But that does not yet mean that they deserve to be bought.
The fall in the gold price, we know about. It peaked more than two years ago, and has since dropped by more than a third. It remains far below its long- and short-term trends.