Canada Gold Stocks Fail to Tap Metal’s Surge: Chart of the Day

The adage that all that glitters isn’t gold is all too familiar to investors in Canadian producers of the precious metal, whose holdings have lagged behind as the commodity soared.

The CHART OF THE DAY shows the gap between gains in the metal and an index of Toronto-traded gold stocks widened to a record last month as investors took advantage of new opportunities to invest in the commodity directly. Since the end of 2000, the last year gold declined, futures on the metal surged almost 300 percent in New York, about double the advance by the Standard & Poor’s/TSX Gold Index.

“Investors are saying, ‘We would want to buy a gold company because of the exposure to the price of gold. Let’s just skip that and buy gold directly,’” said Paul Vaillancourt, director of portfolio strategy for Franklin Templeton Managed Investment Solutions in Calgary. (more)