Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Losing Luster


By Leo Larkin We are downgrading most gold stocks to hold from accumulate based on a more pessimistic near-term outlook.

The S&P Gold and Precious Metals Index has fallen 11% so far this year (through Feb. 9), after declining 15.9% in 2000. That's weaker than the broader market: the S&P 500 index has slipped 0.4% year-to-date, after declining 10.1% last year.

We see renewed South African producer sales and a likely drop in physical demand exerting pressure on gold prices. The long-term fundamentals are intact as the CRB Commodity Index, PPI and CPI are still rising, and global output drops on lower ore grades and lower exploration spending. But with near-term prospects weaker, we are turning neutral on the

group.

We downgraded Barrick Gold (~~), Homestake Mining (~~), and Newmont Mining (~~) from accumulate to hold. We also cut Placer Dome (~~) from accumulate to avoid. Larkin is an equity analyst at Standard & Poor's


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus