TSX:SGLD - Post Discussion
Post by
GoldenPolarBear on Mar 08, 2024 6:52am
« Gold is flying but miners are left in the dirt »🌎
"...
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here. https://www.ft.com/content/c18e53b3-2a42-41a9-b8b1-09087ee8ddea The gold price this week hit another record high, above $2,100 per ounce. Expectations of lower US interest rates and persistent demand from Chinese households are two reasons for this. But the biggest miners, such as Newmont and Barrick, haven’t enjoyed the same success. Shares of Denver-based Newmont Mining have fallen into a pit, down 25 per cent over one year. This follows Newmont’s deal to buy Australia’s Newcrest last February for an increased price of $19.5bn, too rich for shareholders. Barrick shares have also struggled. It has plans to build a copper-gold mine in geopolitically risky Pakistan. Unlike goldbugs, equity investors demand free cash flow for share buybacks and dividends from gold miners. Investors have little faith in mining executives as stewards of their capital. Ironically, this disconnect between metal and miners may prompt more dealmaking...." https://www.ft.com/content/c18e53b3-2a42-41a9-b8b1-09087ee8ddea
Frustrating!
On a separate note:
"...
China Splurges on Gold For a 16th Month as Price Hits Record
- Nation has been adding gold to diversify financial reserves
- Central-bank buying has been key support for precious metal..."
https://www.bloomberg.com/news/articles/2024-03-07/china-s-gold-splurge-reaches-16th-month-as-prices-hit-record
https://www.bloomberg.com/news/articles/2024-03-07/china-s-gold-splurge-reaches-16th-month-as-prices-hit-record
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