UBS: Seven Reasons to Overweight Gold Stocks

UBS: Seven Reasons to Overweight Gold Stocks

UBS believes that the current valuation of gold stocks is relatively low, with a price-to-earnings ratio 40% below the average level. Furthermore, the trend is decoupled from the price of gold. If gold stocks were to conform to a normal relationship with the price of gold (with a beta coefficient of 190/90, i.…