A new report from the National Mining Association (NMA) finds that mining companies are “showing a great deal of restraint in their efforts to increase their stock market value.”
In other words, there’s not a lot of buying going on.
“While mining companies have invested significantly in their stock portfolios, the value of their assets have remained relatively flat over the past few years,” the NMA found.
In other cases, the NME reported, “companies have increased their market value by less than half a percentage point.”
So it’s no surprise that prices for gold are going through the roof.
“The majority of the increase in gold prices over the last two years was driven by investors buying gold at higher prices than they would buy any other asset,” the report says.
Gold is on track to reach a price of $1,800 an ounce (1,250 euros) on Tuesday, up more than 30 percent from a year ago, according to CoinDesk.
That would make it the biggest-ever increase in a single day.