Gold has been rising faster than the price of mining stocks. Here are some statistics to prove this point.
In the twelve months ending August 31st, gold has risen 46.5%, but the XAU Index of precious metal mining stocks climbed only 17.7%. By itself, that is a good rate of return for mining stocks, but not what one would expect given gold?s appreciation over this period.
The current year-to-date results are even more telling. Gold has risen 28.7% this year, compared to a -3.8% loss in the XAU Index.
In the last two months, gold has risen 21.7%, while the XAU Index climbed 8.4%. You might notice from these results that the XAU Index is finally starting to show some relative strength compared to its year-to-date results, which is one sign that things may be turning in favor of the mining stocks. Here is another.
AZH Price at posting:
44.5¢ Sentiment: LT Buy Disclosure: Held
