Gold Miners Not Making It Easy on Investors
By Eric McWhinnie | November 5, 2013 5:28 AM EST
Hedge fund manager Hugh Hendry once said: “There’s no rationale for owning a gold mining equity. It’s as close as you get to insanity. The risk premium goes up as the gold price goes up. There is no valuation argument that protects you against the risk of confiscation.” While most investors have yet to face confiscation, it has been a brutal year for shareholders.
The world’s largest gold producer recently reminded investors just how much can go wrong in the mining industry. Barrick Gold (
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Disclosure: Long EXK, AG, HL, PHYS