A Long-Term Look At A Few Precious Metals Miners

In my last article published at Seeking Alpha I have presented two companies (Fresnillo and Randgold), which are worth investing in the long-term. I have also presented two miners not worth investing.

Below you will find a supplement to this article. These charts show the relative strength of each miner's shares against the sector average (expressed in GDX - an ETH holding big miners shares):

How to read these charts? Let me explain using Randgold as an example.

On May 27, 2008 GDX was trading at $44.7 per share. Today (October 30, 2015) these shares are trading at $14.96 so between May 27, 2008 and October 30, 2015 they went down by 66.5%.

As for Randgold:

On May 27, 2008 Randgold (GOLD) was trading at $41.59 per share. Today (October 30, 2015) these shares are trading at $66.87 so between May 27, 2008 and October 30, 2015 they went up by 60.8% (yes, despite the ongoing bear market in gold, which started in 2011, Randgold has been quite a good investment).

Next, $100 invested in GDX in May 2008 today is worth only $33.5, while $100 invested in Randgold is worth $160.8 today. So the value of investment in Randgold is higher from the investment in GDX by a factor of 4.8.

This is what the second chart shows. Since May 2008 Randgold has been appreciating against GDX and today its value is higher than value of GDX by a factor of around 4.8.

The behavior of Fresnillo is similar to Randgold,

On the other hand, AngloGold Ashanti and Barrick Gold have been losers against GDX (and in nominal figures as well).