too true....“Why are the mining and exploration stocks doing so poorly despite metal prices still much closer to their decade highs versus lows?:
Because I never felt they could be selling where they are at today .....( I sure agree with that statement)
Despite metals prices up anywhere from 100% to 500% or more from where they were a decade ago, the vast majority of producers and exploration stocks have not remotely come close to reflecting those appreciations in their share prices. The thought used to be that mining shares were actually better to own than the physical metal as they were to offer better leverage to metal prices going up. Nothing has seemingly been further from the truth.
I just charted Goldcorp (10 years) which I sold back around 2004-2005 at $28, $30 and $32 and today its only $40.50 (although paying a small dividend) but gold was a third of today's $1,600. It's not just the junior resource sector it's the whole sector that doesn't reflect the value of assets that product a product that sells at $1,600 and likely much higher in the next few years.
Resource stocks are the most undervalue sector on the planet and I'm praying they wouldn't stay that way !
Sure is a tough time for anyone that has stayed long.
GLTA
