Cliffs Natural Resources Inc (CLF), Peabody Energy Corporation (BTU): Blame Steel, Coal, and Gold for the S&P’s Biggest 2013 Losers

Tarnished gold
Finally, Newmont Mining Corp (NYSE:NEM) has fallen 34% in 2013. The explanation is pretty simple: gold bullion prices have dropped by nearly that amount, as the SPDR Gold Trust (ETF) (NYSEMKT:GLD) is down more than 26% so far this year.

A substantial part of gold demand has come from investors who are skeptical that the efforts of the Federal Reserve and other central banks will produce the intended economic growth without creating inflation and jeopardizing the viability of fiat currencies. Yet as economic conditions do in fact improve in the U.S. and the Fed starts to contemplate pulling back on its dramatic interventions, gold investors fear that rising interest rates and less systemic danger could make gold look a lot less attractive.

Can these stocks recover?
Of these three stocks, I’d give Newmont Mining Corp (NYSE:NEM) the best prospects for a recovery in the future. Newmont Mining Corp (NYSE:NEM) doesn’t need a full economic recovery to start moving higher again; it only needs investors to recognize the value of gold and other precious metals after their huge declines. Moreover, weakness among Newmont Mining Corp (NYSE:NEM)’s rivals could give it strategic opportunities to pick up lucrative mine assets on the cheap, producing better long-term prospects. Given the continued headwinds for steel and coal, the prospects for gold look the best out of these three areas.

The article Blame Steel, Coal, and Gold for the S&P’s Biggest 2013 Losers originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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