To: TobagoJack who wrote (183988 ) 2/15/2022 9:23:20 AM From: Pogeu Mahone Respond to How gold miners lost their mojo? Author of the article: Gabriel Friedman Publishing date: Feb 14, 2022 • 16 hours ago • 8 minute read • Gold miners appear to have lost their safe-haven status even as gold prices perform as expected in a crisis. (Take me there>>>>) financialpost.com Gold miners should be some of the happiest people on Bay Street. //www.youtube.com/watch?v=hYhiHISlryg Central banks have spent the past couple of years pumping trillions of dollars into the global economy, precisely the kind of thing that makes gold bugs crazy and typically drives up demand for a metal that humans have valued for centuries. Inflation has surged to its fastest pace in more than three decades, and geopolitical rivalries haven’t been this intense since the Cold War. If investors ever needed a safe haven, it’s now. Gold miners have long pitched themselves as something akin to portfolio insurance, an asset class as solid as the metal they dig out of the ground, which is supposed to hold its value at normal times, and rise when a panic-inducing crisis occurs. But this crisis has largely passed miners by. Article content Gold itself has performed as advertised: the commodity touched an all-time high of US$2,058 per ounce in late 2020 and it remains elevated at around US$1,862 per ounce, roughly 12 per cent away from its immediate pre-pandemic high. [Suppressed Image] As a result, gold mining companies are reporting higher profits, but those gains aren’t reflected in stock prices. Their shares have underperformed both gold and the broader stock market, raising questions about whether something about their industry has fundamentally changed in recent years. If the worst global pandemic in more than a century isn’t enough to stoke interest in gold miners, what’s going to happen when things settle down? Why invest in their sector at all if it underperforms during a crisis? “It’s kind of like the Rodney Dangerfield phase, where everybody’s saying, ‘I get no respect’,” said Jason Neal, a veteran mining investment banker and board member of G Mining Ventures Corp., a junior exploration company. A range of factors could explain why gold stocks have underperformed. One would be the popularity of technology stocks such as Alphabet Inc. and Microsoft Corp., which have soared over the past two years, suggesting investor appetite for risk has superseded a desire for the insurance that gold mining companies could theoretically provide. Continues see link above
