Gold Stocks Regain Their Glitter

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That disparity between gold company stocks and the metal itself is set to disappear, according to Michael Curran, an analyst with RBC Dominion Securities. I think we're back in a healthy historical relationship where the equities outperform the bullion, Mr. Curran said in an interview.

...Gold, it seems, is the new copper. Spot bullion climbed to record highs for the second successive session Thursday as traders bid the precious metal as high as $872.90 an ounce amid further political unrest in Kenya, continued weakness in the U.S. dollar and inflation concerns sparked by $100-a-barrel oil.

Sean Boyd, head of Agnico-Eagle Mines Ltd., expects gold will soon break through $1,000 an ounce and predicted activity in the sector will mirror the shakeout that has transformed the base metals sector over the past few years...

For years, gold producers watched enviously as share prices of base metal miners rose in tandem with surging prices for copper, nickel and zinc driven by demand from China's booming economy. Yet even as the price of gold rose 30 per cent last year, stock price gains by most producers failed to match the increase as investors fretted about soaring production costs.

That disparity between gold company stocks and the metal itself is set to disappear, according to Michael Curran, an analyst with RBC Dominion Securities. I think we're back in a healthy historical relationship where the equities outperform the bullion, Mr. Curran said in an interview.

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