Higher gold
price expected to
fuel exploration
T
he global turmoil in
financial markets and
the abrupt collapse of
commodity prices have
taken some of the shine off
the mining and mineral exploration sectors, but it’s a different
story for gold.
True,...
More
Higher gold
price expected to
fuel exploration
T
he global turmoil in
financial markets and
the abrupt collapse of
commodity prices have
taken some of the shine off
the mining and mineral exploration sectors, but it’s a different
story for gold.
True, exploration
programs for precious metals
have also been trimmed and
financing is a challenge, however, the consensus among market
observers is that gold is poised
for an upswing.
“With lower base metal prices,
it’s tougher for exploration
companies to find people who
are willing to invest, so their
funding has dried up, but gold
is seen as a safe haven when
markets are volatile and it’s a
hedge against inflation,” said
Trevor Turnbull, director of
gold and precious metals with
Scotia Capital.
Given the unprecedented
volatility sweeping the world,
market watchers expected gold
prices to shoot up a lot earlier,
but “the safe haven these days for
investors is to be out of the market
and to have cash,” said Turnbull.
“People have been afr
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