The price of gold has risen by over 25% this year, yet mining stocks are in the doldrums. Why? “It is something everybody is thinking about at the moment”, says the manager of one of the largest gold funds. Prices of gold and mines have diverged in the past but the mining stocks have always …
Daily archives: September 20, 2011
How the eurozone crisis affects businesses
Two weeks ago Siemens withdrew over €500m from a ‘large French bank’, and deposited it with the European Central Bank. Partly this may be because the ECB is paying a higher interest rate (which surely means more risk?). But it seems more likely that Siemens fears there is a significant risk that the ‘large French …
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Copper price falls further
The price of copper has fallen to a 10-month low. The price of copper is seen as closely linked to industrial demand. The latest fall is seen as driven not by the current balance between supply and demand, by uncertainty about the growth outlook in Europe (eurozone crisis) and China (maintaining relatively high interest rates …