“Gold equities are essential parts of portfolios in these difficult times”

Gold shares traded modestly lower in mid-day trading on Monday, as the Market
Vectors Gold Miners ETF (GDX) slid $0.65, or 1.1%, to $56.49 per share. However,
despite todays sell-off the GDX remains higher by 9.8% in January and is on pace
for its best month since a 10.4% climb in August 2011. In light of the sectors
rebound this month, analysts at J.P. Morgan noted in a recent report to clients
that Gold equities have offered levered exposure since the breakoutthe promise
of QE is good for commodities but is not helpful in stimulating real economic
growth and recently has not been successful in getting money into people's
pockets. The firm went on to say that We continue to feel that gold and the
better gold equities are essential parts of portfolios in these difficult
times." With regard to specific companies, analysts John Bridges and Sadhak
Bindal reiterated their "Overweight" ratings on Barrick Gold (ABX), Goldcorp
(GG), Kinross Gold (KGC), and Newmont Mining (NEM).