Einhorn and other gold miner bulls are hoping the bounce since the October low can eventually propel the sector back to its 2011 high.
However, Joshua Brown at the Reformed Broker blog argues that miners are “almost universally atrocious as equity investments.” He notes that Market Vectors Gold Miners traded at about $56 a share in the first quarter of 2008 — it now sits just below $62 — “an absolute joke when you consider that the metal itself…has doubled in value.”
Brown concludes: “Now I’m not telling you that these stocks can’t work, it’s just that they always find a way not to just when they seem poised to really get going. I am long the sector through some active managers so, believe me, I’d love to be wrong here and see the group finally deliver.”
Market Vectors Gold Miners
