Gold miner stock rally has just begun, some analysts say

Feb. 21, 2014 10:19 AM ETAuRico Gold (AUQ)NEM, PPP, GDX, PSAU, FNV, GDXJ, GOEX, DUST, NUGT, GGGG, AUQ, RING, JDST, JNUGBy: Carl Surran, SA News Editor8 Comments
  • 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 (NYSE:AUQ) and Franco-Nevada (NYSE:FNV).
  • Gissen suggests investors dip a toe in the water by buying some of the growing intermediate producers such as Primero Mining (NYSE:PPP); among the larger producers, Goldcorp (NYSE:GG) looks most attractive because of the projects it has and the cash flow it will generate this year.

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