23-Mar (Reuters) — Investors keen on gold showed frustration at underperforming funds that invest in mining firms as liquidations extended for more than four straight months, while money flowed into funds that invest in the underlying metal, data from Lipper showed.
Gold mining stocks have underperformed the metal over the last several years as companies struggled with rising costs and operational problems in far-flung locations, but the figures show an accelerating trend.
…Over the past 12 months, precious metals equity funds shed 12.1 percent while underlying metal funds gained 6.8 percent.
PG View: The going price for an ounce of gold is just one of many factors that determine the price of a mining share. If exposure to the metal is what you want, buying that metal in its physical form is the most prudent path in most circumstances.