Bullish News for the Gold Miners - Large Investors Buying the Shares!
Fund managers dump bullion for gold shares
Professional investors who want exposure to gold are starting to put their money in gold-related shares rather than the metal itself.
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Fund managers are predicting an upwards re-rating for gold shares Photo: ALAMY
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By Emma Wall
3:55PM BST 02 Oct 2012
Gold shares are being snapped up by fund managers in place of bullion, as the derating that has occurred over the past three years looks to right itself.
Alastair Mundy who runs the Investec Cautious Managed fund and Jon Rebak who runs HSBC Open Global Distribution have increased their exposure to gold shares and reduced exposure to gold bullion. Troy Trojan multi-asset manager Sebastian Lyon has gold shares and gold bullion dominating his top holdings.
There is a large disparity between the price of gold bullion – which has experienced an almost flawless 10 year bull run – and gold shares, but experts are predicting a re-rating. Production picked up in the second quarter to the end of June, buoying precious metal mining shares.
Chelsea Financial Services said that now was the time to buy.
"A stronger second half from corporates on the production front, a rising gold price and an oil price with limited upside should assist gold equities in providing earnings leverage," said Darius McDermott of Chelsea. "Longer term, as the market becomes more comfortable with ‘higher for longer’ gold prices, the equities should re-rate further."
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Precious metals specialist Evy Hambro who runs the £2.9bn BlackRock Gold & General fund said in his weekly gold report that quantitative easing would be positive for commodities and gold shares.
"QE3 is good for commodities, at least in the short term. That this round of easing is open-ended and may be accompanied by additional quantitative measures could well provide the impetus for a more sustained uptrend. Longer-term, supply-demand fundamentals remain broadly supportive of gold prices," he said.
"Gold equities are trading at attractive valuations on a number of metrics. A feature of the industry is an increase in dividend payments. In our view, this trend is likely to continue and could increase the attractiveness of gold shares relative to their key competitor – gold Exchange Traded Funds (ETFs) – and so could aid a re-rating."
http://www.telegraph.co.uk/finance/p...ld-shares.html
Re: Bullish News for the Gold Miners - Large Investors Buying the Shares!
I think what have held gold miners back, is their seeming knack for selling their future production when prices are low, and buying it back when prices are high...
Re: Bullish News for the Gold Miners - Large Investors Buying the Shares!
Quote:
Originally Posted by
mamboni
fund managers dump bullion for gold shares
professional investors who want exposure to gold are starting to put their money in gold-related shares rather than the metal itself.
http://i.telegraph.co.uk/multimedia/...s_1836343b.jpg
fund managers are predicting an upwards re-rating for gold shares photo: Alamy
IBTO (in before takeoff)
Re: Bullish News for the Gold Miners - Large Investors Buying the Shares!
Quote:
Originally Posted by
Neuro
I think what have held gold miners back, is their seeming knack for selling their future production when prices are low, and buying it back when prices are high...
Most major mining companies are controlled by Jew banksters whose objective it is to keep PM prices low by "forward selling" at ridiculously low prices.
Re: Bullish News for the Gold Miners - Large Investors Buying the Shares!
Quote:
Originally Posted by
hoarder
Most major mining companies are controlled by Jew banksters whose objective it is to keep PM prices low by "forward selling" at ridiculously low prices.
I suspected it wasn't a pure coincidence... ;D
