by Tyler Durden
Sunday, Jul 25, 2021 - 09:00 PM
It's been a while since Wall Street banks recommended anything to do with either gold or gold stocks, but in a surprising reversal, last week one of Wall Street's biggest bulls Credit Suisse said that the time has come to use gold stocks as a risk off diversifier, while seeing material upside for the precious metal.
Here is why CS' global equity strategist Andrew Garthwaite, believes that it is now time to buy gold:
First, according to Garthwaite, the valuation of gold stocks is abnormally cheap on both P/E - trading at a 25% discount to the broader market vs a 30% premium normally, and also cheap on a price-to-book basis relative to the market