Moody’s downbeat on gold
Jan 9, 2014 at 6:31 am in General Trading by contrarianuk
Moody’s has cut the average price of gold to $1,100/oz and for Silver $18/oz in 2014. They say the fundamentals “seem unfavorable over the next couple of years as the global economy maintains forward momentum, governments unwind various stimulus programs, and the threat of inflation remains subdued in most major economies,”. Not good news for the credit ratings of the big gold and silver miners!
It is perhaps worth noting that very few precious metal stocks have actually gained in value since their initial listing. Here is a table of the top 20 London Stock Exchange listed stocks sorted on actual annual compounded gain/loss since first listing. The full table is 90 stocks, so if we ignore gold and silver, then only 10 stocks are actually higher than their initial listing price.