Gold’s precious mettle

Pictet Asset Management
By February 4, 2019 14:03

Gold’s precious mettle

Once again, political and economic uncertainty is pushing to the fore gold’s attractions as an investment haven. But this time investors wanting to allocate capital to the precious metal have a better option than just buying bullion bars or futures contracts. Gold mining stocks are looking particularly good value. Indeed, gold miners have become such an attractive proposition that they’re proving irresistible to the some of the industry’s best informed bargain hunters: their rivals. Ever since Barrick Gold took over Randgold Resources last September for USD6 billion, there’s been growing enthusiasm for mergers and acquisitions in the sector. When miners start acquiring each other, this suggests the market is underpricing the value of their assets, namely the gold they’ve yet to mine. What’s more, not only are gold miners’ stocks attractively valued relative to their reserves and the price of bullion, but also compared with the materials sector as a whole and with global equities in general. 

Author Details

Pictet AM is an independent asset manager, overseeing more than CHF206bn for our clients across a range of equity, fixed income, multi asset and alternative strategies. We provide specialist investment services through segregated accounts and investment funds to some of the world’s largest pension funds, financial institutions, sovereign wealth funds, intermediaries and their clients.

Website:pictet.com

Heiko de Boer
Senior Sales Manager, Netherlands
Tel: +31 20 240 3140
E-mail: hdeboer@pictet.com

René de Wit
Senior Sales Manager, Netherlands
Tel: +31 20 240 3140
E-mail: rdewit@pictet.com

Twitter: @PictetAM_NL
LinkedIn: Pictet Asset Management Nederland

Pictet Asset Management
By February 4, 2019 14:03

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