Gold has performed strongly in the new year, with political turmoil in the US pushing the price of gold above $1900 an ounce.
Not only is the gold market shining in the new year, it is only a matter of time before gold prices break through their all-time high of $2000 an ounce, but one fund manager says he expects mining stocks to attract interest from many new investors.
John Hathaway senior investment manager of the Sprott Gold Equity Fund said that with the significant improvement in profit margins the rise in gold prices and the good development of production investors can not ignore that the mining industry is currently generating value.
Mr Hathaway says that as more and more common shares enter Bubble, investors will be forced to look for value in other industries. Gold stocks will be more attractive when mainstream strategies start to collapse, he added.
Hathaway said he would see a trend in 2021 that the mining industry needs to generate liquidity to attract larger investors. He points out that large amounts of capital are being attracted because of the high liquidity of commodities. If inflation and capital flows are good for gold, then they are also good for mining stocks.
