Gold miners are about as cheap in relative terms as they have been in 20 years, according to Andrew Garthwaite, a global strategist at Credit Suisse Group AG. Garthwaite cited the stocks’ valuation, based on projected earnings, in a report Wednesday that predicted “a strong bull market” for the precious metal.
The forward price-earnings ratio for an MSCI global gold-mining index was 36% lower as of Wednesday than the ratio for the MSCI All-Country World Index of developed and emerging markets, according to data compiled by Bloomberg. Two years ago, gold stocks’ forward P/E was 65% higher.
*** GDX 20 months later ***
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