Shares in small and mid-cap gold companies could double within weeks as the gold price continues to soar, says Tom Winnifrith, senior fund manager for the SF t1ps Smaller Companies Gold Fund.
He says the current price of about $1,880 an ounce will rise to more than $2,000 by Christmas. This will deliver windfalls to mining companies that are not currently priced in, said Winnifrith, meaning stock prices will rise.
“Greed will drive gold equities sharply higher in the next days and weeks,” he said. “When panic enters the building as those with no gold exposure realise the error of their ways then the party will really kick off.”
Gold has increased in price by about a half in the past year driven by financial uncertainty and a lack of faith in the dollar and euro. The same factors have caused appreciation of the Swiss franc as investors seek a safe haven for their money.
©2011 funds europe
