Gold miner stock rally has just begun, some analysts say

|By:, SA News Editor

Gold miners already have recouped YTD more than a third of what they lost last year, and basic materials investor Malcolm Gissen thinks the rally may have a lot more room to run.

The co-manager of the Encompass Fund says it’s a great time to invest in gold miners; there’s a jump in merger activities in the sector as well as hostile takeover attempts, which be a sign that higher gold prices are ahead.

Adam Koos of Libertas Wealth Management prefers to wait to see a base creation and then breakout above bearish resistance lines and moving averages; when that happens, he likes AuRico Gold (AUQ) and Franco-Nevada (FNV).

Gissen suggests investors dip a toe in the water by buying some of the growing intermediate producers such as Primero Mining (PPP); among the larger producers, Goldcorp (GG) looks most attractive because of the projects it has and the cash flow it will generate this year.

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