Party just getting started for mining stocks
15th November 2019
Resources Rising Stars
Historical evidence suggests gold mining equities are about to take off, fund manager Ronald-Peter Stoferle told delegates at the Zurich Precious Metals Summit (reports MiningNews).
Stoferle, a fund manager at Liechtenstein-based Incrementum AG and author of an annual report entitled ‘In gold we trust', said the pattern of mining equity performance in every bull market since 1942 suggested a steep rise - or "euphoria" as he put it - typically seen at the end of an uptrend, was still to come.
"From my point of view the party is getting going. I think we're not at the very beginning but I think the party guests are only very slowly entering the room and it will probably be a fun party," said Stoferle.
Stoferle said gold mining stocks were at some of their lowest levels in history relative to gold.
"Just in 2016 - at the very end of this bear market, they have been cheaper relatively. But since then - since 1950 on a relative basis, they've never been cheaper."
Stoferle, whose keynote presentation was titled, "The seventh sense of financial markets", began his talk by likening gold to an animal instinct for change.
"The seventh sense is what we can explain with gut feeling, with intuition about the future. From my point of view the break-out in gold that we've seen a couple of months ago actually tells us that there was a macro shift that happened," said Stoferle.
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