Gold Stock Premium at Record Low on ETF Demand: Corporate Canada
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Investors are abandoning Canadian gold producers including Kinross Gold Corp. for exchange-traded bullion funds, leaving valuations at a record low compared with the rest of the market.
Gold shares in the Standard & Poor’s/TSX Composite Index fell 28 percent as of March 16 from an historic high in September, while the market benchmark is down only 1.5 percent. Miners in the index are trading for 16.7 times reported profits, or 12 percent more than the index. The premium is the smallest since February 2003, according to data compiled by Bloomberg.