(Bloomberg) — A year ago, you couldn’t get Wall Street to touch most gold miners’ stocks. Today, it’s throwing billions at the industry.
Precious-metals miners once seen as too leveraged and high-risk for the typical investor raised $2.4 billion in secondary equity offerings during the second quarter, data compiled by Bloomberg show. That’s the most since 2013 and seven times more than the funds they raised a year earlier.
With the Covid-19 crisis threatening economies worldwide and gold prices soaring on the heels of monetary and stimulus programs, precious-metals companies have become the darlings of the investment community.
The sector, which once largely drew the attention of specialist funds, is now attracting a broad base of investors.
“All of a sudden we’re seeing real interest from generalists,” said Bryan Slusarchuk, chief executive officer of Fosterville South Exploration Ltd., whose company plans to dig for gold in Australia.
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