Shares of gold-mining stocks were among the big losers last year as investors once again pushed the stock market to new heights. For gold bugs, it didn’t help matters that the dollar gained value during the year relative to other currencies, since gold and the dollar have a strong inverse correlation over time.
But with fears of a global economic slowdown emerging in recent weeks, many mining stocks, along with the metal that underpins their value, have enjoyed a nice rebound in the new year.
Though gold is famously known as a hedge against inflation, it’s also viewed as an antidote to the deflation that often accompanies a severe economic slowdown.
