Damaskos: Gold shares could be re-rated soon

ON SPECIALIST MARKETS

At the beginning of the year, most people thought the 2008 crisis had been overcome and that the world economy had started growing again, albeit slowly.

Markets were strong and trending higher until the Japanese natural disaster happened in March. Despite the considerable consequences of that event for the world economy, markets recovered poise, until early May when the difficulties of resolving the Greek situation became more apparent. Since then, volatility of market prices has risen threefold and the general direction has been down as investors have become risk-averse. In this period, gold has been the notable strong performer. Its price has risen by 22% year to date when the value of the FTSE 100 is down by 7%. Gold mining shares ...