by Andrey Dashkov, Casey Research:
Earlier in July, Jeff Clark showed in his article A Rare Anomaly in the Gold Market that the gold sector is dramatically undervalued based on its price-to-book ratio. In this article, I would like to expand on his analysis and provide some additional context.
In that article, we found only 31 primary gold producers with a market cap over $1 billion. This seemed rather small when one considers just how many stocks trade around the world, so we wanted to compare this to other industries.
The charts below are built from a database of 6,830 companies. They’re grouped by industry, and all have a market capitalization of US$1 billion or more. They trade on various stock exchanges.
Here’s how the number of gold producers compares to other sectors.
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