SAN FRANCISCO (MarketWatch) — Opportunity knocks in the metals mining equity space, but wary investors are too afraid to open the door.
It’s not that investors haven’t noticed that metals mining shares have severely lagged the performance in gold and silver prices. The weak overall stock market has simply made investors reluctant to believe there’s a genuine profit prospect.
It’s happened before and it’s happening again.
“Whenever there is general equity weakness and risk aversion, miners underperform,” said Jeb Handwerger, editor of market analysis provider GoldStockTrades.com.
The credit crisis of 2008, the 1987 stock-market crash and the European sovereign-debt crisis that started last year are all examples.
Then “when markets turn around, miners usually make huge strides far outpacing bullion,” he said.
