Recent gains in gold mining stocks have a lot further to run according to strategists at Tokyo-headquartered investment house, Mizuho Financial Global.

The sector endured a long and painful bear market as the prices of commodities in general and the price of gold in particular plunged over the course of 3 or 4 years but, the last 3 months have seen a sharp reversal in their fortunes.

Gold prices have staged a strong and sustainable recovery from the $1080.00 low they set late last year. Currently trading at around the $1250.00 mark, more accommodative central bank policies appear to suggest that there is much more upside potential for the yellow metal and the companies that produce it.

“A lot of gold miners had to cut expenditure, shutter expensive developments and become much leaner, much more efficient businesses,” said Mayuki Hoda, a commodities researcher at Mizuho Financial Global. “That, in and of itself, has made them far more attractive to investors but when you consider that the cost of producing an ounce of gold has also fallen significantly, there’s plenty more upside up for grabs.”

Miners doing particularly well in the recent rally include a number of Mizuho Financial Global conviction buys like Newmont Mining, a stock which was particularly heavily punished during the rout in miners.

“We saw the potential in companies like Newmont, Barrick and to a lesser extent, Yamana Gold,” said Hoda. “They were grossly oversold but we could see they were still solid businesses with great assets so we had little hesitation in acquiring holdings for our clients.”

About Mizuho Financial Global:
Mizuho Financial Global is an independent, full-service brokerage, wealth management and business management concern dedicated to providing pioneering capital appreciation and wealth preservation solutions to affluent individuals and families and businesses.

Without exception, they place the welfare of their clients first and foremost and they take great pride in knowing that they are the first port of call for their investment and financial affairs. They constantly exceed our clients’ expectations by going the extra mile to deliver the service and, most importantly, the returns on investment their patronage demands.