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A major US-listed gold miner lost one-fifth of its market value this year as precious metal prices fell due to the strong dollar and rising bond yields from the 2020 lows.
New York Stock Exchange Gold Bug Index fall down It has reached 20% since the end of last year, the lowest level since April 2020, and is well behind MSCI’s 11% rise in the global stock market barometer.
Gold has fallen 14 percent since then Set a record Troy ounces over $ 2,000 last August.
The attractiveness of metals has been blunted by the stronger dollar, making metals more expensive for international buyers. Rising bond yields Compared to this time last year. Gold, unlike bonds, does not provide a source of income. The backlash in the global stock market has also diminished its appeal.
Robert Minter, Director of Investment Strategy at Aberdeen Standard Investments, said: “This is’sell everything and throw away your baby in the bath water.’Gold will be a constant opportunity for us whenever it falls like this.”
Despite the industry’s promise to increase and reduce dividends, lower gold prices have hit investors’ sentiment towards gold miners. Environmental footprintAccording to Joe Foster, fund manager at Van Eck in New York.
“When gold is struggling, fundamentals aren’t really important to these gold companies,” Foster said.
Stocks in Newmont, the world’s largest gold miner, fell 6% this year, while Barrick Gold fell 16%.
“Unprecedented” number Share buyback According to BMO Capital Markets, it also showed that many miners consider their stocks to be undervalued this year. Yamana Gold and Canadian miner Kinros Gold have announced that they will repurchase their shares this year.
This year, Yamana’s share price fell 27%, while Kinros Gold fell 23%.
Mark Bristow, CEO of Barrick Gold, the world’s second-largest gold miner, said this month that the gold industry needs to: Focus on growth Instead of giving shareholders cash returns.
“The chronic trend of the gold mining industry to harvest gold prices instead of investing in the future has led to reduced reserves and a shortage of high-quality development projects,” he said.
Gold miners lose their lustre as price of precious metal drops Source link Gold miners lose their lustre as price of precious metal drops