The analysts also like gold miner shares. Miner ETFs have bounced since mid-May following a brutal losing streak. [Have Gold Miner ETFs Finally Reached the Turning Point?]
“We have found precious metal equities to be quite underowned and underpriced,” Sterne Agee said. “Despite many precious metals equities enjoying one of the best price movements on Friday, we believe investors have yet to fully recognize the relative attractiveness of these shares given the sharp price correction seen since February 2012, above-average dividend yields and prospects of improved cash flow generation.”
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD.