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Precious Metals: Platinum Beats Gold

Platinum and palladium stocks outperformed gold and silver stocks on a risk-adjusted performance basis during the past six months.

NEW YORK (TheStreet) -- Our risk-adjusted calculation methodology for precious metals during the past six-months indicates that platinum group metal stocks outperformed gold and silver stocks overall, even though gold stocks gained during the market correction between April 23 and June 7.

Our PGM stock favorites for months


Stillwater Mining



North American Palladium


outperformed the

S&P 500

on a risk-adjusted basis by 37.0% and 18.6%, respectively. Another, PGM stock

Platinum Group Metals

(PLG) - Get Report

outperformed the index by 19.5% on a risk-adjusted basis during the past six-months.

U.S. Gold



New Gold

(NGD) - Get Report


Tanzanian Royalty Exploration



Lihir Gold



Golden Star Resources

(GSS) - Get Report


Eldorado Gold

(EGO) - Get Report

were the only gold stocks to dominate or match PGM stocks, overriding the index by 52.9%, 48.2%, 22.0%, 21.6%, 21.5% and 18.5%, respectively, on a risk-adjusted basis.

US Gold, New Gold and Eldorado

were upbeat during the S&P 500's recent slide

. Tanzanian Royalty's performance can be attributed to its low-beta value of 0.69, which reduces the required return for a given risk.

On the other hand, PGM producers, Stillwater Mining, North American Palladium and Platinum Group Metals, have high equity betas of 2.17, 1.81 and 1.29, respectively. These higher-beta values, compared to gold stocks, reduced the risk-adjusted performance of PGM producers.

Gold giants

Barrick Gold






TST Recommends

Newmont Mining

(NEM) - Get Report

, with respective equity betas of 0.77, 0.82 and 0.88, trounced the S&P 500 on a risk-adjusted basis by 6.3%, 7.8% and 8.5%, respectively.

Other gold producers,

Gold Fields

(GFI) - Get Report


Harmony Gold Mining

(HMY) - Get Report


Kinross Gold

(KGC) - Get Report


Yamana Gold

(AUY) - Get Report

, underperformed the index on a risk-adjusted basis by 1.6%, 4.3%, 4.7% and 10.5%, respectively.

The underperformance is more prevalent for silver stocks.

Coeur d'Alene Mines

(CDE) - Get Report


Silver Standard Resources



Hecla Mining

(HL) - Get Report


Endeavour Silver

(EXK) - Get Report

outstripped the index by 17.3%, 15.8%, 14.1% and 3.9%, respectively, on a risk-adjusted basis.

Our top silver stock pick for months


Silver Wheaton


, was the only silver stock to match PGM stocks, with a risk-adjusted gain of 20.7% over the index. Other silver stocks

Compania de Minas

(BVN) - Get Report


Mag Silver



Pan American Silver

(PAAS) - Get Report

, outperformed the index on a risk-adjusted basis by 13.1%, 7.9%, and 2.8%, respectively.