4 'amazingly cheap' gold stocks

by Adrian Day, editor Global Analyst

The senior gold stocks are “amazingly cheap” and here we are looking at a package of four such stocks as a way to participate in the eventual share price recovery.

Here's a look at four favorites: Freeport Copper & Gold (FCX), Barrick Gold (ABX), Newmont Mining (NEM) and Yamana Gold (AUY).

The gap between bullion and the stocks of companies that produce the stuff has widened.

There are many reasons for this: costs have gone up; miners have lagged fiscal discipline (overpaying for acquisitions and issuing too many dilutive shares); investors are buying gold for protection not profit (and hence are drawn to bullion); and the gold ETFs make buying gold easy.

In the past nine month, the gap has widened, with gold stocks valuation relative to bullion falling almost 30%. (more)