The Price of Gold and the Worlds Largest Gold Companies

The gold histogram represents the price of gold with the scale on the left. The line charts represent 9/10 of the Worlds Largest Gold Companies according to Wikipedia (http://en.wikipedia.org/wiki/Largest_gol...) with the share price on the right.

You can see where gold peaked back in the summer of 2011 and then how as price fell so did the companies who produce it. What I find interesting is that the larger the price ticket of a stock the more volatile the stock seems to be.

The only company here that seems to be consistently rising is Yamana Gold - AUY .

1. Barrick Gold - ABX
2. Goldcorp - G
3. Newmont Mining - NEM
4. Newcrest Mining - NM
5. AngloGold Ashanti - AU
6. Yamana Gold - AUY
7. Kinross Gold - KGC
8. Gold Fields - GFI
9. Eldorado Gold - EGO


Nice looking chart. What this chart is showing is how poorly the gold miners have performed since 2007 relative to the price of gold. What it doesn't show is valuation and how expensive the miners were at that time. Even a year ago the stocks were still expensive and they continue to lag. Note some of my charts on GG (Goldcorp) and GLD that I have posted over the past year. GG's returns (Return on Equity, ROE) and cash flow are extremely low. So, looking further back to the early 2000's, these stocks were the primary way to get exposure to the rally in gold, so they became substantially over-owned. Just my two-cents from watching the sector for twenty or more years.