‘Sun Worldwide’ – Mining Worldwide - (Gold Miners Rally Strongly) ...

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Miami, Florida, USA, 19-10-2009- ‘Sun Worldwide’ welcomes junior mining stock surge but warns investors to be circumspect.

“Sun Worldwide” analysts who advised clients to invest in the stocks of selected junior mining stocks are apparently jubilant at the sharp rally in their prices but have issued a note of caution to those who failed to buy at recommended values.

Sources close to the Asian-based firm say that the potential exists for a moderate pullback in equity prices in general and suggest that this could have an effect on all stocks – even those tied to gold price action, however positive.

“Sun Worldwide” has been bullish on gold and silver as hedges against both currency devaluation and governmental profligacy and has also recommended that clients invest in mining stocks as a leveraged play on the secular bull market in precious metals.

Recent activity has seen certain mining stocks surge by more than 20% but the firm believes that the disparity between market recovery and economic recovery remains uncomfortably wide for the rally in equities to continue without pullbacks in the short term.

One of the “Sun Worldwide” sources added that equity values remain largely at the mercy of the value of the US dollar which has been the subject of an “orderly decline” – a decline given impetus by the Reserve Bank of Australia’s decision to raise interest rates by 25 basis points last week.

Whilst “Sun Worldwide” does not expect the US Federal Reserve to follow suit, the firm is mindful of the central bank’s plans to end its quantitative easing policy acting as a brake on the dollar’s decline in the weeks ahead – an event it feels may negatively affect the price of precious metals.