via Commodities Now (Guest Post)
While the party continues for gold bullion prices, stocks of gold companies have been a no-show. Both the NYSE Arca Gold Bugs Index (HUI) has the Philadelphia Gold & Silver Index (XAU) are still in the negative territory year-to-date. Companies such as High River Gold Mines, Jaguar Mining and NovaGold Resources are off more than 40 percent from 2007-2008 highs. Short-term aberrations in markets are common, and this isn’t the first time gold bullion and gold equity prices have diverged. Gold equities underperformed gold bullion in 2000 and 2008 during…
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