Mining Stocks Poised for Rebound as Gold Prices Stabilize

Gold mining stocks have taken a hit this year, but experts say they're attractively priced heading into the second half. The sector's performance has been lackluster, with investors turning their attention to gold bullion instead.

In January, gold prices soared to a record high of over $5,500 before plummeting to around $4,000 in mid-July. Gold mining stocks lost even more value than bullion, but some experts believe they're due for a rebound.

Chris McHaney, executive vice-president and head of investment management and strategy at Global X Investments Canada Inc., notes that gold miners don't need the price of gold to rise in order to make money. At $4,000 per ounce, they can still generate significant profits.

Portfolio managers Robert Cohen and Nawojka Wachowiak agree that gold mining stocks are undervalued. Historically, mining stocks have traded at a premium to their current price, but now they're trading around one times net asset value.