“Right now the mining companies are trading more akin to the cyclical heavy industry mining,” Christensen stated. “The senior companies are trading akin to about five times cash flow at the moment – I don’t see a significant level of downside to the current multiples in the mining industry and we at ASA think that the mining investments in general are very inexpensive today relative to where we’ve seen them in the past.”

“The recent divergence between the bullion price and gold miners’ stocks does not appear to be justified by deterioration in the fundamentals or in the underlying value of their shares,” Simona Gambarini said in a recent ETF Securities report.

Market Vectors Gold Miners

For more information on gold miners, visit our gold miners category.

Max Chen contributed to this article.

Showing Page 2 of 2