Yamana Gold’s chairman of the board, Peter Marrone, said that tech giants dwarf gold mining giants, but this could also benefit investors. He also made various comments on the precious metal. Cryptocoin. com we have compiled the details…
The golden expectations of the famous manager
On Friday, Marrone conducted an interview with Mining Audiences Manager Michael McCrae, Editor Neils Christensen and Kitco reporter Paul Harris. The largest gold miner, Newmont, has a market capitalization of $44 billion, compared to Apple’s $2.57 trillion valuation. In terms of ratio, Newmont is 1.7 percent of Apple. Tech companies are also attracting more investors. The Nasdaq Composite Index has risen 22 percent to date. The VanEck Junior Gold Miners ETF fell by almost the same amount over the same period. “Give the gold industry time,” Marrone said, adding:
Gaps need to be filled. The broader investment community has to say, ‘Where do I put my money?’ And if the broader market is trading at 13, 14, 15 times cash flow and precious metals companies are trading at four to five times cash flow, I think it will find a home. That’s where the money will go.
Marrone said that when precious metals companies are invested, any cash that goes into the industry will have a big impact as the gold industry is relatively small. Saying that he believes in some respects it is relevance that is holding the industry back, the executive said, “In some ways, what is holding the industry back is …. I believe it has relevance. “While every other area is doing well, its relevance to the broader investment community stands out.”
