- Gold has stagnated for over a year as real yields have been hovering around all-time-lows.
- Precious metal mining stocks such as AngloGold have lost significant value over the past year as investor appetite in the sector has waned.
- AngloGold is extremely cheap by most metrics but has been negatively impacted by a mine shutdown and rising production costs.
- I believe AngloGold's difficulties will prove temporary and that it will still generate an EPS of around $1.44 this year and more in years to come.
- If gold eventually rises to $2750/oz, as I expect based on the money supply relationship, then AngloGold could easily rise to new all-time-highs.
For further details see:
AngloGold Ashanti: The Most Undervalued Gold Miner Today