Bumper Q3 to Attract Investors Back to Gold Miners
by With gold prices reaching record highs, the September quarter is expected to post the highest average quarterly gold price ever, signaling “significant margin expansion,” according to Neil Adshead, who’s an analyst at the Commodities Discovery Fund. In a conversation with Kitco jouranlist Paul Harris on the Digging Deep podcast, Adshead expressed optimism about the outlook for gold miners.
“It will be exciting to see several gold mining companies surpass the projections of sell-side analysts. We’re likely to witness bumper profits, which will definitely draw more investors into the sector,” said Adshead. He noted that during favorable times, mining companies typically see profit margins of around 40%, but some high-grade producers could generate margins above 50%, which would be extraordinary.
Gold Equities Gaining Momentum
Investor interest in gold mining equities is growing, reflected in the 35% year-to-date rise of the GDX index fund. Despite this, many companies are still trading … Read More