However, potential investors should be aware that gold miners have lagged gold bullion when prices declined. For example, gold prices fell 28% last year while the NYSE Arca Gold Miners index fell 54%.
“What gives me pause is that if the economy continues to show signs of strengthening, we could take another leg down in bullion prices,” Mark Luschini, chief investment strategist at Janney Montgomery Scott LLC, said in the article. “I’m not sure that gold miners, even though they’ve been punished a lot, couldn’t fall further.”
Market Vectors Gold Miners ETF
For more information on gold stocks, visit our gold miners category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of GLD.