Citi analysts Jon H Bergtheil, Johann Steyn, Heath R Jansen, Jatinder Goel, Michael E Flitton, Craig Irwin and Alexander Hacking provide a well-reasoned analysis of the gold market and their basis for downgrading Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) (LON:RRS), Fresnillo Plc (LON:FRES) (OTCMKTS:FNLPF) and Polyus Gold International Ltd (LON:POLG).
Bearish on gold
Citi’s view is that gold topped out in 2011 and is yet to climb out of its bearish depths.
Furthermore, since the worst of the GFC is over and there is a global economic recovery afoot, the risk insurance component in gold value, estimated between USD 700-900/oz at the last high, could have vanished. This makes a case for a readjusted gold price of...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
