Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Gold Buying Spree Adds $1.8 Billion to Fortunes of Metal Miners

Stock Markets Sep 27, 2019 14:30
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Gold Buying Spree Adds $1.8 Billion to Fortunes of Metal Miners

(Bloomberg) -- Billionaire fortunes are getting whipsawed by global trade tensions, but for one group -- tycoons with major holdings in gold-mining assets -- it’s a prosperous time.

Four mining billionaires, including Egypt’s Naguib Sawiris and Russia’s Suleiman Kerimov, have grown their fortunes by $1.8 billion this year. Spurred by central bank easing, the metal has gained about 16% in 2019 and is poised for its best year since 2010.

The biggest gainer is Kerimov, whose family controls 78.6% of Polyus (MCX:PLZL), the biggest gold producer in Russia. He’s followed by Sawiris who owns stakes in gold mines through his closely held company, La Mancha Resources. He told Bloomberg last year that he was one of the largest gold-mining investors in the world and expects prices will reach $1,800 an ounce. The metal traded at $1,492 at 6:53 a.m. in New York.

“You have to be buying at any level, frankly,” investor Mark Mobius said in a Bloomberg interview last month. “Gold’s long-term prospect is up, up and up, and the reason why I say that is money supply is up, up and up. With the efforts by the central banks to lower interest rates, they’re going to be printing like crazy.”

Other bulls include Ray Dalio, who runs the world’s largest hedge fund firm. He recommended buying gold in July as a way to profit while central bank stimulus nears its limit.

There’s also skepticism of the current rally. Guy Wolf, the global head of market analytics at Marex Spectron, said it’s difficult to make an argument for gold because it doesn’t pay yields and is battling a rising dollar.

Gold Buying Spree Adds $1.8 Billion to Fortunes of Metal Miners
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email