Still, experts say mining stocks are priced as if gold is trading at $800 an ounce, rather than its current price above $1,600. Some hedge fund managers have positioned for gold miner stocks to close the performance gap with bullion prices, but it hasn’t played out.
“Volatile equity markets, environmental regulations and rising costs for miners create head winds that physical gold doesn’t encounter,” writes Amine Bouchentoufat at Hard Assets Investor.
Market Vectors Gold Miners
