The head of Randgold Resources Ltd. He believes that the rise in gold prices in the current year will not make a special weather companies producing precious metals - based on AMarkets.
A 17% rally in 2016 has made the yellow metal is the best asset for the price dynamics in the market. Until 2016 gold dropped 3 consecutive years - many metal producers on this background we have significantly reduced production volumes. Many manufacturers of large loans, which must pay. Growth stocks of gold mining companies are not yet able to greatly improve the situation. For example, shares of Randgold companies have grown by 54% in 2016. However, that gold was the fundamental underlying reason for the growth of global production of the metal to be reduced by about 5 million ounces. Only the price of the metal can aspire above the level of $ 1,400. In the interval the next 5 years it is expected that the metal will be traded on the price segment of $ 1000-1400. The bottom line - the fundamental conditions for the gold (and a significant price increase, respectively) can be improved only at the expense of producers of the metal. It is in the short term and on the basis of current conditions.