Gold no longer ‘the skunk at the picnic’, says mining industry veteran
Investors worried about global growth and central bank actions have sent gold prices on a tear so far this year, and companies that mine the yellow metal got a big boost this week as risk aversion intensified.
Industry veteran Randall Oliphant told BNN on Friday that gold has gone from “the skunk at the picnic to a rock star.”
He knows his way around both mining and bullion, having spent time as the CEO of Barrick Gold (ABX.TO 0.00%) and chairman of the World Gold Council. These days, he sits on the boards of royalty company Franco-Nevada (FNV.TO 0.00%) and is executive chairman of New Gold (NGD.TO 0.00%).
Oliphant told BNN that gold’s gains are the result of a “perfect storm” formed by global economic uncertainty, central bank buying and institutional investors coming back into the asset and related securities.
Asked about sales of gold by Canada’s central bank, Oliphant said he is “disappointed” and points out that central banks in China and India, among others, have been net buyers for 15 years.