“I’ve never seen it dislocate quite like this,” said Peter Grosskopf, chairman of SCP Resources Finance LP and former chief executive officer of Sprott Inc.
Gold is up about 13% this year and set another record Friday above $2,325 per ounce. It’s rallied sharply since mid-February as tensions escalate in the Middle East and Ukraine, and uncertainties linger about China’s economy and US Federal Reserve policy.
Producers’ stocks soared at the outset of the Covid-19 pandemic as bullion skyrocketed amid widespread fears of economic calamity.
Newmont and Barrick went on deal-making sprees in recent years, snapping up smaller companies and eclipsing rivals in terms of scale. The logic behind this was clear: With investors increasingly wary about the sector, the companies wanted to give the gold-miner curious a place to invest.
Barrick chief executive officer Mark Bristow even secured the GOLD ticker in New York.
Since then,…
