SB: Silver Dollar Values Prices Climb, BlackRock: Gold Prices to Escalate in 2013
Stoughton, WI -- (SBWIRE) -- 01/28/2013 -- Last year, physical gold attained about eight percent in gains in monetary worth, while gold equities were amongst the worst performers of the year. Based on Evy Hambro, manager of the BlackRock fund, that's all about to change...
Hambro blames last year's gold and silver price falls on the managers of the under-performing gold equities, saying they had been “atrocious in the way that they've looked after shareholder capital.” Furthermore, they weren't diligent in how the re-invested the money flows into new assets nor did they make shareholder returns a primary focus. Instead, they were too focused on “growth and production for the sake of growth.” In doing so, they inadvertently dissuaded investors - they simply weren't getting sufficient attraction from them.
When businesses begin to serve themselves more so than the shareholders, shareholders clearly catch on and shed interest. However, the rate of under-performance has begun to recede and we're only a few weeks in to the new year. The Gold & General fund is up 1.9pc since the first of January.
In the mean time, all the fundamentals necessary to push physical gold prices up as we advanced into 2013 are going strong. Unless interest rates begin rising anytime soon, specialists predict gold prices will continue to rally quite nicely.
Analysts predict silver and also platinum miners to continue doing well in 2013 just like they did in 2012. “The fund’s silver exposure was a source of out performance, in particular Fresnillo: the stock was helped by a positive market reaction to the board’s approval for the development of their $500m San Julián silver project,” said Mr Hambro. “Our overweight positions in gold royalty companies also aided relative overall performance. The fund’s holding in Impala Platinum, a major platinum producer based in South Africa, was also a positive contributor.”
As central financial institutions keep incentivizing investors to invest in precious metals via quantitative easing and stockpiling gold and silver themselves, we expect demand to remain rather robust through the end of this year, and most likely until the Fed raises interest rates again.
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