While not wanting to harp on the same theme, the strong and consistent interest in gold-related investments such as Kinross Gold (KGC) deserves attention. Following the frenzied price action linked to the failures of two regional U.S. banks, Wall Street apparently believes the worst is behind us. Still, if that were really the case, the strong rise of KGC stock presents a distraction.
For one thing, the market performance of the generally speculative – it is priced under $5 after all – KGC stock is quite remarkable. Up until early March, Kinross appeared headed for the dumpster, which isn’t surprising given the hawkish monetary policy environment. However, amid the banking sector fallout, KGC outperformed, gaining almost 26% in the trailing month. In contrast, the benchmark S&P 500 gained less than 2% during the same period.
