Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The gold price fell by as much as $73 in morning trade on Friday crashing through the $1,500 an ounce level and causing mayhem among gold mining stocks.
After the initial drop June gold futures regained some of its footing settling at $1,501.40 an ounce in New York, a 21-month low.
But after hours renewed selling set in with gold changing hands for $1,476.60 at 5:15pm EST, down more than $88 an ounce or 5.6% on the day.
The gold price is down more than 10% this year and Friday’s sharp decline dragged it into official bear territory, defined as a 20% decline from a high – $1,909 an ounce intra-day in August 2011.
READ: Now it’s definitely here: the BEAR market in gold
