Common Stock Warrants

Six Reasons to Own Gold Equities Now May 28, 2020 This article was originally published at Sprott.com As of April 30, 2020, gold mining stocks were up 11.01% YTD and 57.87% YOY. Gold miners have climbed steadily, following the positive path we predicted back in November 2019.  As of April 30, 2020, gold mining stocks were up 13.81% YTD and 58.67% YOY, compared to -12.36% YTD and -7.91% YOY for the S&P 500 Index. In our view, gold mining equities still have a great deal of upside to offer, given that historically gold stocks tend to outperform the metal during gold bull markets (2-3x). We believe that we are still in the early stages of the current gold bull market which began in May 2019. Rising demand for gold and higher gold prices are followed by strong gold mining stock performance. Here are Sprott’s six reasons why investing in gold equities may make sense right now. REASON #1. Gold Equities are on the Move, Under the Radar Gold mining equities, despite their recent outperformance, are being ignored by most investors. This creates a value opportunity. My colleague John Hathaway, Senior Portfolio Manager, summed up this dilemma best in his recent interview with Jim Grant: “As for gold-mining shares, John Hathaway, co-portfolio manager of the $1 billion-plus Sprott Gold Equity Fund, reports that interest is exactly nil. The Sprott bullion business is jumping, but not the mining-stock investment business….gold shares, in relation to bullion, are the cheapest they’ve been in his 20 years in the business: ‘What … Continue reading →