Shares Pale in the Shadow of Strong, ETF-Fueled Gold Bullion Prices

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Citing a "widening dichotomy between strong bullion price benefiting from over $20 billion invested in ETFs while common shares remain dull, the Prudential Equity Group has rated the gold industry as "NEUTRAL."

Citing a "widening dichotomy between strong bullion price benefiting from over $20 billion invested in ETFs while common shares remain dull, the Prudential Equity Group has rated the gold industry as "NEUTRAL."

In their recently issued "Gold and Silver Quarterly," Prudential metals analysts John Tumazos, Paretosh Misra and Andrew Tseng wrote they "are concerned about a variety of company issues such as hedge losses, acquisition-related goodwill, reserve replacement, and capital cost recovery."

Their analysis suggested that gold bullion ETFs "may represent a better investment than some of the companies as a play on world uncertainty or weak finances of major nations."

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