There's been a wave of consolidation in the sector over the last year. The world's gold producers have been functioning in survival mode for a few years. They've had to deal with the same issues as other base metal companies -- shaky demand, falling prices for commodities and criticism for being a waste of capital and destroying shareholder value. That's changing.
More Quotes from Barros Conti:
Many exploration projects require a gold price of 350 or higher to be profitable, and I believe that larger companies will look to grow through acquisitions of other smaller companies which are making money, have mines, and ongoing projects. The trend will continue.Barros Conti
Gold equities have been under pressure for a couple of weeks now, along with the rest of the market. There's a couple of reasons for that. Gold has had a great run for the first six months of this year. Investors are now thinking that they have some profits in these stocks, so they're taking it and leaving it in cash.
Barros Conti
Gold has shown a knee-jerk reaction to the events over the last two days. It closed up to the better side. The commodity had been under some pressure lately, especially with a strong dollar. People tend to look at other hedges in times of inflation. Unfortunately, gold usually reacts to these kinds of crises.
Barros Conti
The other thing is the redemption going on mutual and hedge funds due to declining stock valuations. We've seen a good level of liquidation recently where some of these funds that have been holding gold stocks are selling them to lock in profits. This kind of activity is still going to take a couple of days to unravel.
Barros Conti
The commodity was down earlier today because we are seeing a bit of profit-taking on stocks. The market looks like it is stabilizing a little bit. With everything that has happened, people are going to continue looking at different asset classes from bonds, to gold, to health care largely defensive plays as investors look for safe havens.
Barros Conti
Readers Who Like This Quotation Also Like:
Based on Topics: Capital Quotes, Value QuotesThe first pages of memory are like the old family Bible. The first leaves are wholly faded and somewhat soiled with handling. But, when we turn further, and come to the chapters where Adam and Eve were banished from Paradise, then, all begins to grow clear and legible.
Max Muller
God will not damn a lunatic's soul. He knows that the powers of evil are too great for those of us with weak minds.
Garrett Fort