Gold equities: A less than glittery outlook |
| Globe and Mail - Sep 12, 2012 |
The Denver Gold Forum should be a happy, happy place, what with the precious metal on a multiyear run to levels above $1,700 (U.S.) per ounce.
But the forum is not a convention of hoarders of coins and bars; it’s an investment conference for the companies who pull the stuff out of the ground.
And since gold-producer equities have badly lagged gold’s gains over the past couple of years, there was less celebrating, and more head-scratching and soul-searching, in Denver this week.
Even Franco-Nevada Corp.’s Pierre Lassonde, known widely as an off-the-charts bull on the gold price, titled his talk “The best of times, the worst of times” – with gold prices the former, and gold equities the latter.
Why the disconnect? Well, as one company’s director of investor relations explained to me, it wasn’t so long ago that the typical buyers of the stocks were gold bugs who preferred production capability to profitability.
Read Full Article from Globe and Mail
- Posted: 2012-09-12 23:23:40
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