Gold equities are essential parts of portfolios in these difficult times

Gold shares traded modestly lower in mid-day trading on Monday, as the Market Vectors Gold Miners ETF (GDX) slid $0.65, or 1.1%, to $56.49 per share.

However, despite today’s sell-off the GDX remains higher by 9.8% in January and is on pace for its best month since a 10.4% climb in August 2011.

In light of the sector’s rebound this month, analysts at J.P. Morgan noted in a recent report to clients that “Gold equities have offered levered exposure since the breakout…the promise of QE is good for commodities but is not helpful in stimulating real economic growth and recently has not been successful in getting money into people’s pockets.”

The firm went on to say that “We continue to feel that gold and the better gold equities are essential parts of portfolios in these difficult times.”

With regard to specific companies, analysts John Bridges and Sadhak Bindal reiterated their “Overweight” ratings on Barrick Gold (ABX), Goldcorp (GG), Kinross Gold (KGC), and Newmont Mining (NEM). – GoldAlert

Tags: Gold analysis, Gold future prices, Gold futures, Gold investment, Gold news, Gold price, gold price forecast, Gold prices, gold shares, gold stock, gold stocks, price of gold, Spot gold, Spot gold price

Posted by admin on Jan 31 2012. Filed under Gold stocks. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry