Gold shares: Don't believe the hype?

Leading investors cast doubt on much-vaunted re-rating of lacklustre gold mining shares.

Investors are questioning whether a re-rating of gold equities will take place, with no end in sight to the five-year long breakdown in correlation between gold shares and the spot price. The gold spot price has climbed 28% in the past year alone, vastly outperforming listed gold mining companies, although resources managers have continued to talk up the prospect of a re-rating of shares. Investors including John Chatfeild-Roberts at Jupiter and Colin McLean at SVM have warned a re-rating does not look likely amid a change in the relationship between the two investments. Chatfeild-...