Metals magnate Alberto Bailleres is posting the biggest gains among Latin America’s wealthiest people thanks to a comeback in silver and gold prices.
Mexico’s second-richest man has added $1.3 billion to his net worth this year, buoyed by a surge at Industrias Penoles SAB and Fresnillo Plc, owner of the world’s largest silver mine. The 14 percent gain in the Bailleres fortune represents the biggest increase among the 10 richest people in Latin America.
Silver and gold are reversing three straight years of declines as investors ratchet back wagers on higher U.S. borrowing costs and seek out safe havens. The silver price is getting an additional boost from forecasts that supply will fall as demand rises for industrial applications in solar panels, mobile phones and flat-screen televisions.
“Penoles remains our preferred mining pick in Mexico,” Mandeep Manihani, an analyst at JPMorgan Chase & Co., said in a note to clients this month in which he raised his price target for to 340 pesos from 282 pesos. Improving results and higher metals prices “have brought Penoles back on investors’ radar screens.”
Penoles has surged 61 percent to 285 pesos this year. That’s the biggest increase on the benchmark IPC index of 37 Mexican stocks and more than eight times the average advance. Fresnillo has climbed 44 percent.
Precious-metals prices have risen this year as worries of faltering global growth prompted traders to pare bets that the Fed would be quick to raise U.S. borrowing costs.
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