LONDON: Investors keen on gold showed frustration at underperforming funds that invest in mining firms as liquidations extended for more than four straight months, while money flowed into funds that invest in the underlying metal, data from Lipper showed.
Gold mining stocks have underperformed the metal over the last several years as companies struggled with rising costs and operational problems in far-flung locations, but the figures show an accelerating trend.
The net outflows from US funds that invest in gold and precious metals mining companies such as Barrick Gold Corp and Newmont Mining Corp continued for the longest period since 2008. Executives from Barrick, Newmont, Goldcorp and Gold Fields are among guests who will be attending the Reuters Mining and Metals Summit next week.
“We have not previously seen that kind of trend of consistent outflows from the gold and precious metals equity funds,” said Tom Roseen, senior analyst at…
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