Why gold stocks look cheap

COMMODITIES

Ani Markova, manager of the Smith & Williamson Global Gold & Resources fund, reveals why 2012 is set to be a positive year for gold equities

As investors struggle to navigate through the current macroeconomic and geopolitical maze, the one asset that continues to shine brightly is gold. Despite its overall return of more than 540% since 2001, we believe there are further opportunities within the precious metals space. The steady appreciation of the price of gold over the past 10 years has been on the back of deteriorating fundamentals behind global currencies. If we look at the massive liquidity injections that took place, post the 2008 liquidity crisis, and that continue to take place around the world in an attempt to prevent m...